Yemeni Minister of Oil and Minerals Amir al-Aydarus confirmed that new exploratory works in “many oil sectors have given positive indications about availability of oil and gas”.
Most of indicators come mainly for the benefit of the availability of gas, especially in the governorates of Hadramout, Shabwa and Marib, al-Aydarus added.
He pointed out that these indicators on availability of gas with large quantities in research and exploration areas, has made the Ministry of Oil expedites the preparation of a supplement for the agreements signed with companies working in these sectors to be added to the previous agreements that do not contain gas.
These supplements provide for the exploitation of natural gas, so that companies can initiate work in extracting gas.
The Yemeni government is now preparing to view the supplement of agreements to parliament for discussion and approval, stressing that this trend would make a leap in the exploitation of gas and would enable companies to work on allocating investment amounts to exploit gas.
The ministry is also preparing to announce a number of sectors that have been agreed with international companies to explore for oil and gas in them.
August 15, 2010
Analysis and Forecast: Decreasing Risk
New gas discoveries in Yemen will be a huge relief as the country faces a rapidly dwindling oil supply, the main source of income for the country. Oil revenue has been plummeting in the past two years due to a combination of depleted resources as well as a drop in oil prices, leading to very serious problems to the Yemeni economy.
Although no details have been given about the size of the discoveries, indications point that they are of considerable commercial size and are likely to dramatically improve the revenue for the Yemeni state. Although it will be several years before this is realized, it nonetheless provides an important source of relief.
The discoveries further reinforce Yemen’s position as having an increased share of Liquefied Natural Gas (LNG), less than a year after the Balhaf LNG, the country’s first major LNG production project, started production.
The following diagram shows an estimate of the current make-up of the GDP of Yemen.
The following figure shows the break down of the Yemeni Balhaf LNG consortium.