International firms apply to invest in Yemen’s oil industry [Archives:2006/923/Business & Economy]
Following recent government reshuffling, the Ministry of Oil and Minerals has presented new directions in future priorities of oil exploration and production. Directions include intensifying oil block exploration, analysis and evaluation, in cooperation with international firms, to enhance and develop technical concepts of geological formations, their distribution and efficiency. The aim is to form a complete picture of the reality and future of oil in Yemen.
The new directions also aim to avoid exploration costs and shorten the time period for estimating oil discovery in several blocks in order to introduce and include them in the development and production stage.
Minister of Oil and Minerals Mahfoudh Bahah revealed that a number of international firms have applied for concession rights to explore and produce oil in 14 Yemeni oil blocks. He said 63 firms applied for those blocks, which are included in the third international tender, between early September 2005 and this year's Feb. 14 closing date.
In his first press conference since assuming the Minister of Oil post, Bahah clarified that the said firms represent 26 countries: nine Indian, eight Canadian, five American, six British, three Emirati, three Chinese, three Pakistani, two Australian, two Spanish, two Swedish, two Malaysian, two Indonesian, one Panamanian, one French, one Irish, one Austrian, one Swiss, one Norwegian, one Czech, one Serbian, one Korean, one Japanese, one Turkish, one Lebanese, one Omani and one Algerian.
The minister said such strong demand for the tender was a positive result of a good investment climate and stability experienced in Yemen and due to transparency in ministry procedures.
In late August 2005, the oil ministry announced final results of the second international tender for seven oil blocks. Results were: the Australian Oil Search Company won Shabwa block 7 and Hadramout block 47, the Emirati Al-Thani Company won Mahra blocks 34 and 37 and Hajah block 55; Korean firm KNOC won Mahra block 39 and American Occidental won Shabwa block 75.
Since announcing the third international tender, the oil exploration and production establishment set up a round-the-clock operation room to receive and answer firm applications. A special committee currently is studying technical and financial documents presented by international firms competing to win concession rights to dig oil and gas in 14 blocks in seven Yemeni governorates.
Yemen has 87 oil blocks both on land and offshore: 12 blocks are producing, 20 are exploratory, 13 are under approval, 25 are open and 14 currently are being promoted in the third international tender. Additionally, three are offshore blocks, for which three international firms already have applied.
——
[archive-e:923-v:14-y:2006-d:2006-02-23-p:b&e]
