Ethiopian government ends contract of a Chinese oil prospector

The Ethiopian government has terminated the prospecting contract with Chinese oil company Poly-PGL, saying it failed to meet the financial and technical terms of the deal.

The company, part-owned by the Chinese government, has been drilling for oil and gas in the Ogaden Basin in eastern Ethiopia, the BBC reported.

Local residents have alleged it has poisoned water supplies through the improper disposal of hazardous waste.

The company has not commented on the claims, the report said.