Business

Significant Decline of Yemen’s Oil Revenues in March

National Yemen

oil crises

By NY Staff

Yemen’s revenue from crude oil exports decreased by about $175 million in March to reach $44 million, while last year, the revenue for March was $219 million.

A report issued by the Central Bank of Yemen attributed the decline to the disruption of production due to sabotage and bombings in the main export pipeline in Hadramout. Pipeline attacks led to a decline in the government’s share of production to 396, 000 barrels from two million barrels in the same month of 2013.

The report pointed out that the continuing production decline forced the government to import 1.7 million barrels of oil derivatives in March for domestic consumption, at a cost of $249 million, in order to meet the growing demand for fuel.

According to the report, Yemen is a small oil producer and its production ranges between 280 and 300 thousand barrels per day, while it was more than 400 thousand barrels per day in previous years.

According to the U.S. Energy Information Administration, in January 2013, Yemen’s proven oil reserves amounted to about three billion barrels.  The crude exports share obtained by the Yemeni government accounts for about 70% of the state budget resources, 63% of the country’s total exports, and 30% of its GDP.