Oil deposits in rocky layers announced [Archives:2005/845/Business & Economy]
The minister of oil and minerals Dr Rashid Barabbaa has stated that the ministry was able to verify the actual oil deposits in the rocky layers in a number of regions of Yemen. He said it is a type of oil deposit only found in few areas of the world such as in Vietnam. The ministry also managed to estimate the high-quality production in those rocks, besides natural gas. Results of studies affirmed that daily gas production of a well could amount to more than five million cubic feet.
The minister also confirmed that the cost of oil operation in Yemen was always considered as one of the factors of attraction to oil and gas investments, which might exceed only one dollar. The minister hinted that the Yemeni company for liquefied natural gas had achieved a progress during the signing of three preliminary contracts for selling gas to Korean and American markets. He added there would be a signing of a final selling agreement in the coming short period. He said the project would realize a big stride in the development of the Yemeni economy, particularly after confirmation of the existence of gas in another basin, other than that of Mareb. That would help the government benefit from it in future especially in distribution of electric power in large parts of Yemen. The minister also stressed the importance of exerting more efforts and work by companies and organisations for increasing joint production along with giving bigger interest to the preservation of the environment.
Minister Barabbaa has evaluated the efforts exerted by the authority of exploration and production of oil through its staff of Yemeni employees and engineers, foreign staff and contracting companies. On his part, engineer Nabil Saleh al-Kawsi, president of the authority of exploration and production of oil pointed out the important oil discovery in sector 43 that contains a large oil reservoir in the field of Nibrajah, in addition to oil reserve of Kashan and announcing the sector as commercial in April 2004. He said production would start at the end of next June. He also referred to the discovery of oil existence in Khrair field sector 10 that led to the increase of production in that sector to more than 32 thousand barrels per day. Mr al-Kawsi has also pointed out to the success scored in completion of exploratory digging works in sector 9 in the three discovered fields of Hasswa, Ruwaidhat and Aqban. The sector would be declared as commercial at the end of this month. Thus, he productive sectors would this year rise from nine sectors to 11 sectors.
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