Business

Oil Minister Calls Upon Companies to Reinstate Activities in Yemen

National Yemen

burning gas in one of the Yemeni oil field

By National Yemen

In order to resolve the fuel crisis in Yemen, the new Oil and Mineral Minister, Eng. Hisham Sharaf, met with OMV, Kuwait Energy and Callvalley that operate in different areas within the Ramlat Al-Sabatain Basin.

The meeting was organized specifically so that the Oil and Mineral Minister could begin negotiations for the three companies to resume operations within the country.

This past May, the three oil companies evacuated their expats and moved their operations and headquarters to Dubai, severely hurting Yemen’s oil industry. However, given the recent trend of events, officials from each of the respective companies expressed their readiness to return and create necessary jobs for the fledgling economy.

Mr. Sharaf has expressed the Yemeni government’s willingness to create new investment opportunities in Yemen for international and regional companies in the oil, gas and mineral sectors. Interestingly, these comments have come shortly after Canadien Nexen, a Canadian-based oil company lost its drilling rights to Block 14 – one of the more lucrative drilling blocks in Yemen.

Mr. Sharaf was appointed to his position this December as a result of the protests against former President Saleh. Despite his appointment, Yemen still suffers from fuel shortages despite promises made by Gulf states to support the country throughout the present crisis.

1 Comment

  • Instead of begging gulf countries for oil derivatives, Yemen's government could easily send Hadhramout daily crude oil production, which reaches 150,000 bc/d and shipped abroad via Ash-Sihr Terminal, to Aden Refinery to resolve the oil derivatives problem which lasts for more than 5 months (5 year for Diesel fuel). The government should buy all Hadhramout crude oil production and refine it in Aden instead of selling it to south-east Asian markets.
    This is if the Yemeni government has the honest will and owns its decision to resolve big problems of Yemen.
    I hope that Ba-Sendowah's cabinet is not a cabinet of clawns like the ones before.