New scheme to encourage oil industries investment [Archives:2006/935/Business & Economy]

By: Mahyoub Al-Kamali
Yemeni Minister of Oil and Minerals Khalid Mahfoudh Bahah announced that his ministry has drawn up a future plan to encourage investments in the oil and minerals industries, affirming that such fields are profitable for investors and that Yemen possesses promising oil industry investment opportunities, as well as a distinguished geological staff in the minerals field.

During a recent visit to Aden Refineries Company, Bahah said Yemen possesses abundant investment opportunities in minerals, mentioning that his ministry has begun negotiating with the World Bank to fund studies in this regard aiming to motivate Yemeni and foreign investors in this promising sector.

Bahah further clarified that his ministry currently is coordinating with Canadian oil company Calgary to increase production at Malik oil block 9 in Hadramout, where production recently began, by an average of 2,000 barrels per day (bpd), as well as complete constructing an oil pipeline to block 18 in Marib. He also revealed that negotiations are being held with Austrian oil company OMV, which is working in block 2 in Shabwa, to announce commercial oil discovery in the near period.

Bahah said positive indicators and promising prospects resulting from new exploration and production soon will be announced, pointing out that Yemen's current oil production is 400,000 bpd. He said 123 new exploratory wells will be dug this year, upon which the ministry attaches great expectations.

Bahah said the ministry intends to hold numerous promotional activities, mainly organizing Yemen's third oil and gas conference expected to be hosted in Mukalla city. He also announced that there is joint visualization in cooperation with the Ministry of Planning and several other ministries to present a railroad project with help from the World Bank. The railroad is planned to pass by Al-Jawf via Marib and Sana'a and then to the coast, possibly reaching the two seaports of Mokka and Bir Ali for exportation. The railroad is expected to reduce minerals transportation costs.
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