Local News

Calvalley Petroleum Company Workers on Strike

National Yemen

By NY Staff

The Union Committee of Calvalley Petroleum Company working in Hadramout province announced the hold of oil  working activities in block 9, for three days demanding  equality with the rest oil blocks doing oil business  in the country.

In a press statement, the Commission explained that they started their second partial strike for three days, two hours on the first day, four hours on the second day and six hours on the third day, followed by the total suspension of work in the oil block in hopes that the company will address the demands of the unions.

The workers are demanding equality like the other oil companies operating in Hadramout, the adoption of an integrated functional characterization, an increase in salaries, and the adoption of a real health care system.

The head of the Committee, Fahd al-Nhdi, said that the program will build up to a total suspension of work in case of failure negotiation.

Al-Nhdi pointed out that the company’s management deals with the demands of the workers irresponsibly, which is fueling the feelings of the workers and making them continue the escalation.

The Calvalley Petroleum Canadian company’s total production in 2009 – 2010 reached about 12,000 barrels per day, while production reduced in 2012 – 2013 to about 7,000 barrels per day due to political and security unrest in the country.

Production company in block 9 in Hadramout began in July 2007 with a production capacity of 6,000 barrels.

During the last period, a series of labor protests have increased in the oil companies operating in Yemen, which have cost the country heavy losses in light of declining oil production in Yemen due to the continuation of a series of bombings.

Within one week, Yemen lost about one billion riyals ($5 million) due to the oil operation suspension of the Norwegian DNO company.  The share of crude exports obtained by the Yemeni government from production-sharing with foreign oil companies composed about 70% of the resources of the state budget and 63% of the country’s total exports and 30% of GDP.