INTERVIEW-Ethiopia says deaths do not deter Sinopec

By Katie Nguyen

ADDIS ABABA, Sept 17 (Reuters) - China's biggest refiner and petrochemicals producer, Sinopec, is interested in energy production-sharing deals with Ethiopia in its troubled Ogaden region, a minister said on Monday.

State Minister for Mines and Energy Sinknesh Ejigu said initial talks began even after separatist rebels raided an oil field in April, killing 74 people including nine Chinese subcontractors working for Zhongyuan Petroleum Exploration Bureau, part of Sinopec (0934.HK: Quote, Profile, Research).

The attack was one of the worst on Beijing's growing energy interests in Africa, which range from Angola to Sudan and Ethiopia.

"After this incident, the (Sinopec) vice-president came here and discussed with us, and they said they even wanted to directly enter into production-sharing agreements with us," Sinknesh told Reuters in an interview. "Nothing is concretised."

Under discussion were four out of 21 blocks in gas-rich Ogaden, which have not yet been allocated in a production-sharing agreement.

Zhongyuan had provided subcontractors to dig wells in the western Gambella region for Malaysian firm Petronas (PETR.KL: Quote, Profile, Research) and to carry out exploratory activity for a private firm, Southwest, in the Ogaden.

Sinknesh said the government had assured firms operating in the vast area bordering Somalia -- including Petronas and Sweden's Lundin (LUPE.ST: Quote, Profile, Research) -- that security would be stepped up.

In June, Prime Minister Meles Zenawi announced a military campaign to flush out the rebel Ogaden National Liberation Front (ONLF), which has warned foreign energy explorers to stay away.