Off-shore oil blocks open for bids [Archives:2007/1076/Local News]

SANA'A, Aug. 11 ) The Ministry of Oil and Minerals has announced last week the 4th International Bid Round which is also the first bidding round to include only offshore blocks in Yemen. The blocks open for bids are as follows: Block 22 (Kamaran), block 23 (Hodeida), block 46 (South Belhaf), block 55 (Midi), block 61 (south Masna'ah), block 62 (Okub), block 63 (South Nashtun), block 96 (Ra's Mume), block 94 (Abd Al-Kuri), block 95 (Samhah), block 96 (South Ra's Mume).

Minister of Oil, Gas, and Minerals Khalid Bahah had invited International Oil Companies to participate in the bidding round and present their offers to offer the blocks to the most competitive offers, he also described several of the off-shore oil blocks as promising and will result in increasing the country's oil production, adding that his ministry has been in touch with oil companies and has received requests to allow such companies to launch exploration and production in several off-shore blocks, motivating the ministry to label 2007 as the year for launching off-shore oil activities.

The Ministry has awarded only two off-shore oil blocks in Yemen in the past, blocks 15 and 16. Australia's Oil-Search Yemen Ltd. Has announced last March that it will resume exploration activities in an off-shore oil block located 21 kilometers across Al-Hami city in Hadhramout, where preliminary results of exploration activities in the mid-eighties have indicated that Oil exists in commercial quantities in that block.

On related front, a report by the petroleum exploration and production authority (PEPA) has indicated that Yemen's Oil production will start to increase during the years 2009-2011 as a result of the current intensive oil exploration activities, the report stated that Oil production from blocks 2, 49, 69, 71, 72, and 73 is expected by the end of 2008, while blocks 45, 57, 70 and 74 will start production between the years 2009 – 2011. The report attributed these numbers to the current geological surveys and data analysis.

Yemen's refining capacity will also increase by 2009; plans to expand and rehabilitate the Aden Refinery are in place, apart from a couple of refinery which is being set in cooperation with the private sector, according to the Ministry's sources.
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