Local News

Oil Ministry Rejects DNO Force Majeure Suspension


National Yemen

authorized in charged approves DNO labor force agreement

The Ministry of Oil and Minerals, DNO-Yemen, and the Labor Syndicate of Blocks 32 and 43 in Wadi Hadhramout reached an agreement last Thursday ton end the labor strike and resume oil operation normally.

Shawki al-Makhlafi, the Deputy Minister of Oil and Minerals held the meeting in the presence of the DNO general manager, the labor syndicate that considers the meeting of July 3rd, 2014, part of the former meetings to end the strike that costs the government and the company a lot of money. The agreement approved  the increase of the night shift staff with an extra 15%, returning the two dismissed staff members to their work with the exact job titles for each employee and a priority for training.  After the approvals of these four points the company resumed its oil operations normally .

The labor force strike pushed the company to temporarily suspend production from Block 32 and 43 Howarime (Hadhramout). The average production of each block was 1,600 bopd prior to suspension.


In an old statement, the DNO spokesman said the company is committed to resuming oil operations in the country where it has been active since 1998 and it is engaged with the government and the union to resolve the outstanding issues.

In the last month, DNO had expressed concern over the “challenging” security situation in Yemen, which had affected its drilling and production.

“Shut-in only impacts 60% of our production in Yemen and has limited financial effect on DNO,” said Bjorn Dale, the company’s chief executive. “Both our planned production and development projects have been under pressure due to the security situation.”

ts capitalized costs in Block 32 amounted to USD $500,000 in the first quarter. Investments in Block 43 were $1,600,000 in Block 53. Development costs associated with its Yaalen field in Block 47 amounted to $4m.