Council of Ministers dissolves Calub -Gas Sh. Co.

Minority Shareholders to petition in dismay

By Tamiru Geda

 In its recent meeting the Council of Ministers decided to dissolve Calub Gas Share Company originally incorporated to take part in the exploration of the natural gas fields in the Calub area, in Eastern Ethiopia. The decision to liquidate the company was reached by the Council of Ministers after the Ministry of Mines and the Jordanian SIL Tech made a deal last week to collaborate on the exploitation of the gas fields.
Sources told Capital that the management and Board Members of the Calub Gas S.C. have been informed that under the new plan, Calub Gas would be under the administration of the Ministry of Mines, and have the status of a project office. Its staff would be expected to lend their expertise towards the success of the new venture.
One tricky issue could be the status of private investors who became partners with MOFED (Ministry of Finance and Cooperation Development) to form Calub Gas. There are 450 shareholders although MOFED alone owns an estimated 95% of the stock. Among the minority share holders of Calub Gas are some notable personalities including Mohamed Oxide, a well known coffee exporter, Maitre Afewerk Tekle and Samuel Sultan, former official in the Ministry of Finance.
According to the information received by Capital, the minority shareholders were not informed about the developments or the dissolution of Calub Gas, and they have organized to petition to the Prime Minister protesting the dissolution without even being consulted. The Board Members of Calub Gas have already called a meeting. Sitting on the Board are representatives of EPPCo, MOFED, Ministry of Mines, Ethiopian Petroleum Enterprise and Construction and Business Bank.
The investors argue that they tied up five to six million birr for 10 years, after IMF forced the government to involve private investors in the oil and gas exploration sector. Now the Ministry of Mines has made a deal with the Jordanian company to explore the Calub natural gas fields and decided to liquidate Calub Gas Company.