ADDIS ABABA, Ethiopia, May 12 (UPI) -- China's Zhongyuan Petroleum Exploration Bureau is to begin seismic surveys in eastern Ethiopia's Ogaden basin in June, Xinhua reported Thursday.
ZPEB management announced the move, which is a precursor to a petroleum exploration project being launched by ZPEB and Malaysia's Petronas, Thursday in Addis Ababa.
Petronas, which won three blocks covering 36,000 square miles in the Ogaden basin -- at Fer Fer, Warder and Genale -- has contracted ZPEB to begin the survey work.
The seismic surveys will begin near Genale, 720 miles east of Addis Ababa, a ZPEB company representative told media.
This will not be ZPEB's first foray into the Ethiopian oil industry: in 1998, the Ethiopian government paid the firm $5.6 million to prepare eight gas wells for production at the Calub site, also in the Ogaden basin.
Ogaden is one of five sedimentary basins in Ethiopia that have shown oil and natural gas reserves in geological studies. The country is believed to have 24 million cubic meters of natural gas.