First oil shipment from Ash-Shihr oil terminal exportedCanadian Nexen Petroleum Yemen celebrates a decade of success [Archives:2003/672/Reportage]
September 29 2003
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Al-Mukalla, Sep 24 – Under the auspices of Prime Minister Abdulqader ba Jammal, The Ministry of Oil and Minerals along with the management and staff of the largest oil company operating in Yemen Canadian Nexen Petroleum Yemen (CNPY), and its Partners at the Masila Block (14) celebrated the First Oil Shipment from Ash-Shihr Oil Export Terminal at Al-Dhabba harbor on September 23rd. The celebration was held at the Holiday Inn Hotel in al-Mukallah City.
The 10th Anniversary Celebration Committee consisted of the Ministry of Oil and Minerals, the CNPY and was headed by the Chairman of the Petroleum Exploration and Production Authority Mr. Nabeel Al-Qawsi.
On September 23rd, 1993, the CNPY celebrated the first Masila loading, when Nexen loaded 555,000 barrels of Masila crude oil into a tanker named the “British Spirit.
“Here, we are 10 years and 894 loadings later, celebrating a decade of success after producing and shipping over 700 million barrels of oil,” Mr. Charles W. Fischer, the President and Chief Executive Officer, Nexen Inc stated.
In Yemen, the Nexen's Masila operations continue to provide strong production, free cash flow and additional exploitation opportunities.
This year's exploration program in Yemen is focused on two wells on Block 51 in the second quarter and one well on Block 50 before the year-end.
As for preserving oil production per a day and in stable manner for a long period of time, a Certificate of Appreciation was granted by the Oil and Minerals Ministry in recognition of the CNPY's efforts and its staff on July 13, 2003 on the occasion of the Labor Day
As a well-run company in the field of oil industry, the CNPY championed the International Code of Ethics with support from the Canadian government and continues to promote the Code to other Canadian businesses in order to advance ethical business practices.
The Prime Minister Mr. Abdulqader Bajammal focused in his speech on the economic growth witnessed in Yemen, particularly, since oil exploration in Marib oil field in 1986 and the first oil export shipment by the CNPY at the Masila Block (14) on September, 23, 1993.
“The First Oil Shipment has helped a lot to increase the growth rate from 5 percent to 14 percent,” he said.
“The final accounts of the Central Bank of Yemen in 1994 had a $ 350 million indebtedness. Our country at that time had only $ 90 million and nowadays, the bank has $ 5 billions in financial reserves,” Mr. Bajammal remarked.
The state's budget has been positively increased from $ 1.5 to 3.3 billion this year and that oil constitutes 80 percent of that budget,” he concluded.
Dr. Rasheed Saleh Ba Rabba', Minister of Oil and Minerals expressed his happiness and congratulated the CNPY and its Partners at the Masila Block, (14) on the occasion of First Oil Shipment from Ash-Shihr Oil Export Terminal in Hadhramout governorate.
Dr. Ba Rabba' also expressed his ministry's keen interest to preserve such distinguished success made by the government and the CNPY. He also expressed his hope for enlarging partnership with the CNPY in order to include its ever-increasing interests for practical training of the staff of the company. “This can be done to promote the staff's skills and performance as well as their capabilities to run oil operations in a safe and proper way and for the public interest,” Dr. Ba Rabba' said.
He called on oil production companies to follow suit pace of success achieved by the CNPY.
He also called on foreign and Arab companies and investors to invest their capitals in the field of oil and minerals in the country. “Those investors will find support and we are going to help overcome any difficulties that may block their way,” he said.
Dr. Ba Rabba' concluded his address by thanking the local council authorities represented by Hadhramout's governor, Mr. Abulqader Helal, the military units represented by Brigadier, Mohammed Ali Mohsen, the CNPY, the ministry's staff in all different departments including the Petroleum Exploration and Production Authority chaired by Eng. Nabeel Saleh Al-Qawsi.
Eng. Nabeel Saleh Al-Qawsi, Chairman of the Petroleum Exploration and Production Authority, the Chairman of the 10th Anniversary Celebration Committee, welcomed heartily the celebration attendees.
“Today we are celebrating the passage of one decade since we exported the first shipment of oil by CNPY which proves its success in the practical performance. We are at the Production Petroleum Exploration and Production Authority, appreciate the exerted efforts by the company through our follow- up and monitoring companies' operating in the field of oil exploration and production,” Mr. Al-Qawsi said.
“What have been achieved in this sector confirms the prospective, friendly partnership with the CNPY and what we have been aiming at is the continuation of this distinguished performance to achieve more success,” he noted.
Mr. Al-Qawsi highly thanked H.E. Dr. Rasheed Saleh Ba Rabba', the Minister of Oil and Minerals, the 10th Anniversary Celebration Committee, the CNPY and its staff for making the festival a great success.
Abdulqader Ali Helal, the Hadhramout governor on behalf of the local council of Hadhramout governorate welcomed the guests for attending the 10th anniversary of the First Oil Shipment from Ash-Shihr Terminal.
''The 10th anniversary coincides with the 41st anniversary of the 26 September Revolution and the 40th anniversary of the 14 October Revolution. Great achievements have been fulfilled under the president's era and perhaps our presence here to attend the 10th anniversary of the First Oil Shipment from Ash-Shihr Terminal is a clear testimony of a great success that has been achieved so far,” Mr. Helal said.
The Oil and Mineral Ministry together with the CNPY have achieved great accomplishments and could gain respect of the political leadership, the government and the local council in the governorate.
“The company has been also entrusted with vital roles to promote the state's economy, through partnership principle and petroleum partnership productivity and also through the social projects implemented in exploration and exporting zones,” he highlighted.
“The opulent activities and accomplishments achieved by the CNPY and its Masila Partners can be attributed to joint faithful efforts exerted by the leadership of the Ministry of Oil and Minerals, its staff, the CNPY and its management based on highly developed relations with the local communities in the governorate,” he commented.
Mr. Helal also placed emphasis on that the president's visit to Canada on March 26, 2000, conveying strong deep relations between the two friendly countries. “New horizons have been broadened with regard to promoting the economic relationship and tangible results could also be felt in volume of oil investment,” the governor indicated
“We are seriously working side by side with members of the local council in the districts of the governorate to implement orders issued by the state's high authority in order to facilitate difficulties and tackle problems faced by oil companies including the CNPY,” he concluded.
Hani S. Shehadeh Lababdeh, the Area Manager of the Consolidated Contractors Int'l Company, CCC started his address by congratulating the Yemeni leadership under president of the republic and the Yemeni people on the 41st Anniversary of the 26 September revolution and the 40th Anniversary of the 14 of October Revolution.
As a partner, the CCC joined hands with the CNPY in 1968 in oil exploration in Masila Block, (14).
This sector started its production in 1993 and now it is considered to be one of the biggest oil fields in the Republic of Yemen.
“The beginning was a difficult adventure and unproductive for the oil companies. But the CCC in cooperation with its Partners were overwhelmed by confidence and strong belief that Yemen is a promising country for a brighter future,” Mr. Shehadeh remarked.
Efforts were then exerted by the CCC side by side with CNPY.
As a main contractor, a contract was then signed between the two companies on May, 9, 1992 and the first trade production goals between the two companies were mapped out on September 26, 1993 at the rate of 120 barrels a day.
“The project is considered to be a big challenge on part of the CCC as a result of the workplace distance, the rugged lands and mountainous barriers,” Mr. Shehadeh said.
The Masila Block, (14) is considered to be a huge pioneering transition in the oil industry.
When describing his wonderful trip, the former US president, Jimmy Carter hailing the CCC and that the most interesting and wonderful thing was the CCC's distinguished performance in completing the al-Masila oil field in an extraordinary way.
The major job for CCC in its beginning year was the Aden Refinery. The CCC is ranked as the first company in the Arab world and the 17th in the world.
“The CCC feels proud of being the first company to contribute to establishing the Aden Refinery in 1952. Other consequent contributions have been followed by the CCC in order to achieve a developmental revival through tens of projects for the basic infrastructure in several vital fields such as, oil, water, refineries, constructions, and telecommunications,” Mr. Shehadeh added.
CCC has had a continuous presence in Yemen since 1952.
During the year 2002, CCC had its 50-anniversary celebrations as a major construction company.
Other major projects of CCC in Yemen include, Oil Production and Export Facilities for Nexen/Occidental/CCC at Masila 1992-1993 and Hunt Oil, Alif Expansion, 1992-1993.
CCC was awarded the Masila Block for oil exploration and development in 1985-1986.
In 1986, the Canadian Occidental (Now Nexen) joined CCC as partner. Later, Shell Oil, (Pecten) joined and later Occidental joined. Present ownership now consists of Nexen/Occidental/ and CCC.
Casey Olson, President, Middle East Occidental Petroleum Corporation welcomed the guests, expressing his deep happiness for participating in the important milestone in the history of Yemen's oil and gas industry.
He also highly spoke of Yemen's role in providing investment opportunities for oil and gas companies. “The continued strong performance of the Masila field reinforces our company's view that Yemen offers oil and gas investment opportunities that few areas in the world can match,” he remarked.
“Yemen offers a very positive environment for foreign investment. The oil production-sharing terms offered by the government of Yemen are among the most competitive in the international oil industry,” he added.
He concluded his speech by congratulating and thanking H.E. President Saleh, members of the Yemen government, and the people of Yemen on their success and for the kind hospitality that has been showed to him.
The most vital aspect that makes the Occidental's partnership, particularly “effective” is the professional staff in the Ministry and YCIOM.
In Yemen, Occidental is one of the most active exploration and production companies with the largest exploration acreage position in the country-nearly 15 million acres.
The Company's production in Yemen comes from the world-class Masila Field and the adjacent east Shabwa Field.
Laurence Murphy, Senior Vice-President, International Oil and Gas-Nexen Inc.
President and Chief Executive Officer- Canadian Nexen Petroleum International Ltd.
Mr. Murphy expressed his deep gratitude for the cooperation offered by the Ministry of Oil and Minerals and the Petroleum Exploration and Production Authority.
“These individuals have worked closely with us on project development, steering our project through complex challenges and providing input and ideas at every stage,” he said.
In September 1993, Mr. Murphy moved to Yemen where he became President and General Manager of Nexen's operations in Yemen Republic and managed the Yemen asset until March 1997.
He assumed the Role of Division Vice-President, Europe/Africa/Middle East from December 1996.
Mr. Charles W. Fischer, the President and Chief Executive Officer, Nexen Inc.
Mr. Fischer initiated his talk by expressing his gratitude for participating in that celebration recognizing 10 years of crude sales from Masila.
Masila is truly a world class field and has contributed greatly to the economic strength of Yemen.
The Nexen's Community Affairs Program in Yemen provides basic assistance for clear drinking water, education, power generation, and health care to local communities due to its big successes.
“As a result of this success, Nexen and its Partners have been able to undertake a number of important community initiatives. These include helping to provide basic services such as, water supply, as in the Haru area, power supply, as in the Al Raidah power project, and helping to build medical and education facilities, such has, the school we have recently visited in Ghail Ba-Wazeer.
It is also worth noting that Nexen also provides scholarships to Yemeni students to encourage study in Canada in the disciplines most critical to Yemen's economic growth.
“We have also been able to provide Scholarships for deserving Yemeni students to study in Canada, and Nexen is involved in a major new UNDP water project here in Hadhramout,” Mr. Fischer further stated.
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