In light of the Limburg disaster Oil companies need solid security [Archives:2002/43/Business & Economy]

October 21 2002

It is unusual for our country to confront such a catastrophe like that of the French oil tanker explosion of October 6 in Mukalla.
Apart from the explosion’s unknowns, I’d like to ask if Yemen has the capability to confront such a disaster which has caused serious environmental damage covering 500 kms of its coast.
Further, there are capital damages and looses for the fishermen as the disaster took place on the beginning of the fishing season.
Yemen has to recognize that as its oil production increases, 475,000 barrels a day now, and as oil productive sectors here now have climbed to 70, more than two dozen international companies are working in 37 oil sectors.
So Yemen must provide its ports with the latest technology and equipment. It should be provided with security measures that guarantee the safety of the ports and ultimate readiness for any disasters which may impact its economy, environment and fame.
Oil exports
Crude oil exports from 1988 to the first half of the current year totaled 592 million barrels exported through Ra’ass Issa port on the Red Sea, and Asha’ar and balhaf ports on the Arab Gulf.
The total oil revenues for the same period is US $10.7 billion.
Oil productive sectors in Yemen
Most of the oil productive sectors are in the middle and eastern regions. The Saudi oil pipeline which is expected to be stretched through the Arabian Sea, which has been approved recently, adds more responsibility on the Yemeni government to take all the needed measures into account.
In the oil sector 53 East Sara used by the British company in 2002, the company has completed digging three oil wells in Shairoof field and is going g to conduct a seismic survey to get new oil resources. The production of Shairoof field is esteemed a 17 million barrels and 65 million barrels are the crude oil storage.
In the case of discovering new productive sources, establishing a new oil pipe will be a must to export the oil to Ashaher Port directly, instead of connecting it to the main pipe of Maseela sector.
The quantity of oil exported to the international markets from Sara east sector (Shairoof field) is estimated at 3.1 million barrels. It was noticed that the exported quantity increased from 331,614 barrels in January to 752,380)in June with an increase averaging 127%.
The other fields which are utilized by (DNO) company, which planned to explore another oil fields to increase productivity of the sector. The productive quantity of Hwareem for the year 2002, 3.3 million barrels of crude oil, that’s a daily average of 9.000 barrels from five wells. Further, the esteemed oil storage in Hwareem sector (32) is 35. 2 million barrels.
Also the total oil production from this sector for the first half 2002 is 1.8 million barrels, while the daily average of the production is 10,171 barrels.
No doubt that these scoters will utilize the port of Mukalla which lacks all the required equipments to confront an accident like that of French oil tanker.
However, we hope that officials in the related authorities will recognize the significance and seriousness of this issue which is directly linked to the safety and stability of our country.