Canadian Occidental Picks Up Four New Blocks [Archives:1998/34/Front Page]
Canadian Occidental Petroleum Yemen is now concluding negotiations to pick up four new blocks. Agreements will be finalized over the next few weeks between the Yemeni authorities and the company regarding blocks 11, 12, 36, and 54.
Larry Murphy, Canadian Occidental’s Vice President for International Affairs, flew into Sanaa last week for talks with the Minister of Oil and Mineral Resources, Mr. Mohammed Al-Khadim Al-Wajeeh, and senior members of his ministry. Mr. Murphy is expected to fly back into Sanaa on September 9th, 1998, to conclude on-going negotiations.
Canadian Occidental Petroleum Yemen now operates block 14 (Masila) in Hadhramaut from which it produces nearly 200,000 bpd, making it the country’s largest oil producer. Yemen Hunt Oil Company produces nearly 160,000 bpd from its Marib oil block. Other producers are much smaller.
Canadian Occidental believes that the new blocks have good potential and that the company is expected to make reasonable finds in the future.
Minister Al-Wajeeh says that the country could be producing over half a million barrels of oil per day before the turn of the century.