20 June date for winners in new bidsDrop in government share of oil production + increase in revenues [Archives:2004/748/Business & Economy]
The total share of the Yemeni government from oil exports during the first quarter of this year a mounted to 19,81 million barrels with a value of $ 632,85 million worth, compared to 20,16 million barrels of $ 568,13 million worth for the same period in 2003. a central Bank of Yemen report has mentioned that the government share amount dropped by 1,74% but the value amount rose by 11,39% due to rise in crude oil barrel price to $ 31,93 during the period of January – April 2004. Oil exports in the past years had seen noticeable increase. They had risen in value from $ 777, 5 million in 1995 to $ 8 billion. Yemen's new oil map presently comprise of 84 oil sectors where the ministry of oil is trying to expand investment in them to guarantee increasing the expected financial revenues from annual exported amounts, which constitute around 36% of the volume of Gross Domestic Product and by a percentage ranging between 60 to 70% of general revenues.
The Yemeni oil ministry has distributed tenders to world companies from 6 new sectors in both governorates of hadramout and Shabwa, fixing the 29th June 2004 a date for announcing the winner companies in tenders.
Oil is considered a major source of foreign currency for Yemen. The number of productive sectors rose to 9 oil sectors in which nine world and Yemeni companies are operating. There are 20 exploratory sectors with 14 operating companies, 3 sectors under approval of production participation agreement, 4 sectors still under negotiation, 4 under analysis and evaluation, and 4 under promotion, in addition to 32 open sectors promising with commercial production.
According to sources at the Oil Exploration Establishment, the 6 sectors on supply for investment are situated on land. Preliminary surveys are encouraging are affirmed their containing of commercial amounts of crude oil, after being discarded by Canadian Nexen Company Ltd operating sector 61 and Vintage company.
A new oil discovery has been found in a sector to the south of Khuar 43, operated by Norwegian DNO Company and Malik sector operated by Canadian company Kalgali, in addition to existence of encouraging oil and gas in sector 47 and 48.
The ministry of oil is trying to achieve increase in quantities of production, as studies confirm that 90% of Yemen's total area is promising for oil exploration and digging.