Local News

DNO-Yemen AS Halts Oil Operations And Terminates Staff

National Yemen

By NY Staff

DNO-Yemen AS is a Norwegian oil company that has been doing business in Yemen since 2000. They have now announced the end of oil activities and termination of local and international staff.  “About 200 employees were kicked out of their work with no prior notice from the company management who have used the country’s deteriorating political situation an excuse to apply such an illegal process,” said one of Sana’a staff member who asked for anonymity.

By April 27th, the company had sent notification messages to all employees via SMS and emails informing them of the termination decision. DNO is considered the first oil company to announce a major termination plan in Yemen aiming to avoid compensation and end years of service for its almost two-decade working staff.

DNO did not follow the example of its neighboring company Dove Energy who handed over Block 53 on January 31st, 2015 to the Yemeni government or Total who helped its staff leave nearby Faj Attan after the mountain was bombed by the Saudi coalition, which killed tens of people and injured hundreds, forcing many to escape death. “DNO have done the opposite by not following the appropriate working standards towards its employees. It has gained from the absence of law to break its professional commitment,” said a DNO-Yemen staff member.

DNO has also practiced frequent suspensions of its production since 2013 for unclear reasons, causing a major economic impact on Yemen’s economy and its stockholders. Local staff has shared a complaint letter with National Yemen saying that they have been very loyal to their work and company and they were supposed to give them better respect and compensation for the long years they served.

DNO local staff directed a message to the Ministry of Oil and Minerals to carefully investigate the unjustified announcement of DNO and compare it to the surrounding oil companies operating within the same basin in al-Masila Hadhramout. The staff was disappointed by DNO’s total ignorance and disrespect to business ethics. “I have been left a worthless person and my kids will lose their future by such a respectable company,” concluded Mohammed.

DNO-Yemen AS oil Block 32 Howarime (Nabraja) – PSA is still valid until 2017, Tassour Block 43 in south Howarime is valid until 2020, while Block 47 is valid until 2030. According to these dates, the company has no right to terminate staff contracts. The Oslo-listed operator stated, “DNO has suspended production in Yemen due to the continuing deteriorating of security conditions in the country.”