Oil Production Operations Suspended in Yemen


working employee at Canadian Nexen CPF al-Shahr terminal export

By NY Staff

The partial strike of  Canadian Nexen Petroleum Yemen employees ended today by suspending  all the business production operations in al-Masila block (14) and block (51) east alhajr in Hadhramout. The union committee of CNPY confirmed the suspension of all operations type  at the terminal facilities in al-Shahr, due the continues ignorance of the company management and the ministry of oil and minerals to the rights of the employees. The employees rights started in the mid of the year 2007 and it has been raised last month March 24th, in a partial strike.

They agreed to remain at their jobs for five days while talks continue toward a more permanent accord, the union spokesman said.

CALGARY Nexen advises that production has been temporarily shut in and operations suspended in Yemen as a result of a strike by members of the Masila Labour Union. Nexen continues to engage with the union and government agencies to reach an agreement.

“At our Buzzard platform in the North Sea, we are operating at reduced rates due to problems with the platform’s cooling system. A permanent solution has been identified and production is expected to be variable until the repairs are completed this summer” said Tim Chatten.

The Masila fields are mature and the PSA expires at the end of 2011, but significant value still remains from the point view of the company  who are currently working on a possible contract extension.

Nexen  Calgary is trying all possibilities of negotiating a five-year extension but there is no assurance that we will obtain an extension to operate the Masila field and CPF beyond 2011.

The pipeline blast occurred in the central Marib province in the mid of last March 2011, where several oil and gas fields operated by international companies  like OMV, Jannah Hunt  and others are located. “It is thought that tribesmen, angry with the government, were responsible, and it is linked to the current unrest,” a second shipping source based in field said.

Canadian Nexen has been active in Yemen since the mid -1980, with more than 900 national employees. The company has drilled more than 800 wells  and it exports more than 150,000 bbls/day including the neighboring international oil companies in al-masila basin like Total, DNO, Dove and other who are affected by the shut down of CNPY terminal export.

By the suspension of CNPY production actives , the government of Yemen face a n additional challenge to the ongoing crises of the gas  and fuel shortage, economy and the unrest demonstration since Feb 11th, 2011.

CNPY is quite worried to face the same fate of Hunt oil company the ex-operator of block 10 Marib-al-Jawaf which was kicked out of Yemen in a last minute negotiations on midnight of14th of November 2005.