Business

Yemen Loses Millions of Dollars due to Oil Pipelines Attacks in Hadramout

National Yemen

oil crises

BY NY Staff

The repeated attacks on the oil pipeline and oil production in Hadramout caused a decline in Yemen’s oil exports share in February 2014 to 800, 000 barrels, from a potential 2 million barrels in April. An official report issued by the Central Bank of Yemen said that attacks caused the decline in the revenues of Yemen’s oil export share to only $89 million, while it was $126 million in January.

Sabotage attacks also caused a decrease in the quantities of crude oil allocated for domestic consumption in February to 1.4 million barrels, which is less than the need of the local market. According to the report, the government was forced to import large quantities of petroleum products to meet the domestic market’s needs.

The cost of petroleum products imported via Aden Refinery Company amounted to nearly $239 million in February 2014. The Central Bank made the payments necessary to obtain the fuel, which was then sold on local markets. During January and February, Yemen imported petroleum products of about $497 million, while Yemen revenues from the exports did not exceed $ 304 million during the same period.

Sana’a suffers from an oil derivatives scarcity where hundreds of cars in long lines wait for three to four hours in stations in order to get oil, while the majority of the stations are closed. The crisis of oil derivatives in Sana’a is fabricated in order to confuse citizens. The demand for petroleum products has increased in the light of frequent power outage that is more than doubling fuel consumption.

According to an official source, the leader of Brigade 107 in Marib province received YR 10 million per month in order to protect the crude oil pipeline. The official source said that 3, 500 soldiers are a part of the brigade, though only a few hundred are on active duty.

Analysts speculate that military leaders have made agreements with terrorists and bombers to stage pipeline attacks to force the state to pay money to be split between the two parties. The source pointed to Ahmed Saif al-Yafei as evidence, who now receives YR 30 million per month to protect pipelines and powerlines, though there are only fifty soldiers in his camp opposed to the 1, 600 claimed.

Another source denied that there are any recipients by military commanders that do not go directly to the soldiers, rather than their own pockets.

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