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Ethiopia and Djibouti signed an agreement to realize the construction of an oil pipeline which the US- based Black Rhino, an African infrastructure development company, will manage.
Several big companies have expressed their interest to construct the petroleum pipeline between the two countries.
Ethiopia, which is the primary user of Djibouti ports, currently transports its imported petroleum via road using trucks, which is costly. Ethiopia imports benzene from Sudan while other oil products that make up 80 percent of the total oil import of Ethiopia come via Djibouti ports.
As per the plan, the pipeline will be stretched from the Djiboutian sea port through an Eastern Ethiopian town of Dire Dawa reaching a fuel depot in Awash.
The 550kms long pipeline would minimize fuel trucks commuting from Ethiopia to Djibouti, and the oil will be distributed from Awash.
Ethiopian Ambassador to Djibouti Suleiman Dedefo told Capital that the project will be completed in three years.
Tolosa Shagi, Ethiopian Minister of Mines and Ali Yacoub Mahamoud, Djibouti’s Minister of Energy in charge of Natural Resources Department, sealed the oil pipeline construction protocol to realize the project on Saturday February 7, 2015 during the state visit of Prime Minister Hailemariam Desalegn to Djibouti.
The USD 1.4 billion fuel reservoir project is believed to minimize transportation cost of millions of birr Ethiopia spends on fuel carrier trucks.
According to Ambassador Suleiman, the project is a private investment where expenses are fully covered by the undertaker Black Rhino.
Black Rhino was founded with an aim to address the critical needs for infrastructure and energy development across the African continent. Black Rhino seeks to capitalize on the major opportunity to invest in projects in the energy security sector, including power generation, transmission, fuel storage and pipelines.
Black Rhino has developed a comprehensive understanding of the African continent, including the necessity to establish strong partnerships with leading African entities that complement its expertise. 
Black Rhino’s management team has collectively been involved in the development of over
USD 35 billion of infrastructure, communication and power generation projects across the globe and has over one hundred thirty-five years of combined African experience.
The team has been responsible for numerous projects from the concept stage through the full financing, construction, operation and ultimately the current stage. It prides itself on setting standards for developing transformational projects that aim for the greatest level of local population participation and adherence to strict environmental and safety standards.
In related news, another agreement was signed between Ethiopia and Djibouti to construct a pipeline to transport natural gas from the Ethiopian region of Ogaden to Djibouti.  The Chinese company GCL-POLY GROUP won the bid that costs over USD three billion.