Yemen’s Oil Export Revenues Continue to Decline

National Yemen

By NY Staff

According to a governmental report, Yemen’s revenues of oil exports have declined by 35.5% in the first months of the current year to reach $1.45 billion, after being $ 2.25 billion in 2013.

A report issued by the Central Bank of Yemen has attributed the continuing decline of the revenues to the decline of the government’s share of the total oil production in the period from January to October 2014, from 20.72 million barrels last year to just 13.82 million this year.

The report pointed out that the continuing decline of Yemen’s oil production, which had a negative impact on the government’s share of exports, forced the government to import 1.6 million barrels of oil derivatives in October, costing $140.6 million, in order to cover domestic consumption of fuel.

In addition, the total value of Yemen’s imports of fuel during the period from January to October reached $1.77 billion dollars while Yemen’s revenues of crude oil exports reached $ 1.33 billion dollars in September.

The report said that the production quantity of domestic consumption continued declining as a result of the attacks suffered by the main oil pipeline, which links the production fields in the Marib and the refinery in Hodeidah, western Yemen.

Yemen depends on crude oil exports to finance about 70% of its budget.  The crude oil exports are small, and Yemen’s production has declined to between 200,000 and 250,000 barrel every day, after being over 500,000 barrels per day in previous years.

According to the Information Administration of U.S. Energy, Yemen had oil reserves of about 3 billion barrels in January 2013.

The crude exports, which the Yemeni government gets from production-sharing with foreign oil companies, contributes to about 63% of the country’s total exports and 30% of GDP.

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