Russia's Gazprom, one of the world's largest energy companies, is expected to hold talks with Yemen on investing in oil and gas in the country according to Yemeni government sources.
Gazprom project officer Dimitri Katlski, who was in Yemen last week said that the company is to get acquainted with the oil and gas investment opportunities in Yemen. Yemen has an encouraging environment to make some success in oil exploration, Katlski said.
Gazprom's major business lines are geological exploration, production, transportation, storage, processing and marketing of hydrocarbons as well as generation and marketing of heat and electric power.
February 25, 2010
Analysis and Forecast: Decreasing Risk
Gazprom is not the first foreign oil company to show interest in Yemen. However, the increased interest is a good indication. Although this is in very early stages, interest from Gazprom will likely invite increased interest from other oil and gas companies, particularly those in Yemen.
Oil finds in Yemen are vital to prevent a state collapse. Oil revenue forms about 75 % of the government’s revenues. It has dropped sharply in the past several months due to a combination of lower oil prices and dwindling resources.
However, with much of the resources in the south of the country, the central government needs to ensure that stability returns to the south, both to increase and intensify interest for exploration and to stabilize the fragile and failing state.
The figure below shows the make-up of the Yemeni GDP