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OLF rebels warn againt oil investment

WASHINGTON, April 25 (UPI) -- Threats by rebels against foreign companies in Ethiopia following Tuesday's deadly attack on a Chinese-run oilfield highlight new political risks in the area.

"We wish to reaffirm to the international community that the Ogaden region continues to be a battle zone between armed forces of the current TPLF-led regime and our liberation forces," the opposition Oromo Liberation Front said in a statement Tuesday. "It is not a safe environment for any oil exploration to occur. We urge all international oil companies to refrain from entering into agreements with the Ethiopian government as it is not in effective control of the Ogaden, despite the claims it makes."

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TPLF refers to the Tigrayan People's Liberation Front.

"Oil investments in Ogaden will result in a similar loss for any firm that believes assurances of security it receives from the Ethiopian government which has never been in effective control of Ogaden," the statement said.

Tuesday's attack by rebels from the group resulted in the killing of nine Chinese oil workers and 65 Ethiopians. Seven Chinese and Ethiopian workers are believed to have been kidnapped in the attack.

The oilfield is located in Abole, a town some 75 miles away from the capital of the Ethiopian state of Somali, Jijiga.

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China is the world's No. 2 energy consumer and its quest to sate its rapidly expanding economy has resulted in Beijing aggressively placing a foothold in energy-rich African nations such as Ethiopia, Sudan and Nigeria. Indeed, China's No. 1 oil source is Angola.

Although Ethiopia's current proven hydrocarbon reserves are minimal, it has the potential to increase reserves.

Politically, Ethiopia is involved in the unrest in neighboring Somalia where it is helping government forces take on Islamist rebels. It also has a longstanding dispute with neighboring Eritrea. The area that was attacked Tuesday is near the Somali border.

OLF comprises ethnic Somalis who have been seeking independence since the mid-1980s.

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