Oil is main exportWorking on Yemen’s resource sector [Archives:2005/813/Business & Economy]

February 3 2005

Mahyoub Al-Kamaly
Yemen is always interested in the oil sector through enhancing its scientific activities which aims to qualify the national cadres and make a competent administration for such an important economic sector.

An official report about the new oil explorations stated that new explorations in a number of oil blocks including the blocks 43, 9, and 20 will be announced soon.

The report indicated that an agreement was signed between the Yemeni Gas Company and the Korean Co-Gas Company in the respect that Yemen sells 3.3 million tonnes of the natural gas to South Korea. A number of international companies were also nominated to sell 2.5 million tonesn of gas to the US market and it is expected that the best company will be selected before the end of this month.

In the area of minerals, the report pointed out that the first iron explorations in the country were carried out and with promising provision , in addition to materials related to the industry of cement in the Governorate of Marib. This creates an investment opportunity for businessmen to establish a cement factory in the governorate.

According to the report, the Ministry of Oil is due to inaugurate the Load and Zink Mine in Nuhm in the coming short period. The ministry sponsored during the last few years, in its framework of implementing the State's policy, a series of scientific conferences to bring forth database for the oil and mineral wealth in the country.

The most important conference was the one associated with the groove sedimentations Red Sea Aden Gulf. It was held in October, 1995, while the first international conference for oil and gas in Yemen was held in June 2002. Both conferences contributed to the promotion of investment opportunities in the oil and gas sectors.

The Ministry of Oil issued in 1998 a scientific book under the title ” Uniting the Biological Terms in Yemen”.

The first Yemeni oil refinery was established in 1954 in the city of Aden and was designed to produce 80,000 barrel per day. When the British Occupation ended, the refinery was repaired by the Government to retain its usual production..

In the 1980s the State built Marib Oil Refinery with a productions capacity of 10,000 barrels a day, and in the first half of the last year, an agreement with respect to building a refinery in the city of Mukalla with the capacity of 25,000 barrels per day in its first phase. Its productions capacity is expected to increase to reach 100,000 barrels per day. The total cost of the refinery is $200 million with local and Arab investments.

Meanwhile, a preliminary agreement regarding the establishment of Ra'as Eisa Refinery in the city of Hodeida with a production capacity of 30,000 barrels a day was signed between Yemen's Oil Ministry and one of the International companies.

It is worth noting that oil is an important source of revenue to the State's general budget as it exceeds 90% of the total exports.