Norwegian company announces new oil discovery in Yemen [Archives:2006/945/Business & Economy]

May 11 2006

The Norwegian Oil Company D.N.O. said it has achieved an oil discovery at Jawdah concession in Yemen. The company has made it clear that the first two oil wells in the area of Jawdah proved the existence of oil with commercial averages. It added in a statement that production tests revealed the presence of an oil layer no less that 23 meters.

On the other hand president Ali Abddullah Saleh gave his directives on the necessity of providing all material and human potentials necessary for enabling Safir National company of exploratory and productive operations to reach the stage of discovery and development of oil fields, in a manner activating operations of exploration and production in block 18 and other oil blocks in service of the national economy and development.

President Saleh has also given directives for building oil storages in the area of Ras Issa to be built by the Yemeni Oil Company and to provide necessary finances by the ministry of oil and minerals.

The directives stressed the necessity of supporting revenues of the Yemeni Oil Company and rescheduling its debts to government institutions to enable it undertake its responsibilities and implement it development schemes. The directives also stressed the necessity of following up performance of all institutions of the ministry of oil and the companies working at all oil blocks.

The directives emphasize that Yemen possesses promising wealth in oil, gas and minerals, it encourages all investors, and that they would receive all kinds of care and attention as stipulated in the law of investment and the advantages and facilities it grants them.

The president has, during a recent visit to the oil ministry, listened to a report on work progress of Safir Company in management and operation of oil block 18 in Marib after taking over it from the American oil company Hunt that continued managing it for 20 years.

The Safir Oil Company has undertaken management and operation of the oil block 18 for the realization of the national interest and the report indicated to successes it has already achieved in the block especially with the employment of Yemeni specialized cadres that proved their efficiency in shouldering their responsibility in this regard.