Oil Ministry, Total E&P Yemen hold workshop to promote Yemen’s Gas Sector [Archives:2007/1111/Business & Economy]
By: Abdulelah Taqi
For Yemen Times
Sana'a, December 8, 2007. The Ministry of Oil and Minerals and Total E&P Yemen held a Joint Gas Workshop aimed at increasing the common understanding on the importance of gas as a new source of energy. Indeed, less polluting than other fossil fuels and in abundant supply, natural gas is growing faster than any other fossil energy in the world and is the focus of much attention. Total presented its global view and experience in the gas business, covering current and forecast international and national energy situations, environmental issues, markets and regulations. The Ministry explained the new contractual framework contemplated for gas exploration and production. The workshop saw participants engaging in lively discussions.
The workshop was attended by the Minister of Oil and Minerals, H.E. Khalid M. Bahah, Deputy Minister Mr. Abdul Malik Alamah, the General Manager of Total E&P Yemen, Mr. Jean Michel Lavergne, a number of oil and gas-related officials and TOTAL's regional experts team. This team consisted of Mr. Pascal Laroche, Middle East business Manager, Mr. Olivier Journy, Gas & Power business development, Mrs. Anne-Laure Pelcerf, Senior Legal advisor for Middle East, and Mr. Xavier Mine, Senior Economist.
Mr. Jean Michel Lavergne, the General Manager of Total E&P reviewed the Yemeni energy environment, saying that gas has an important role to play in meeting the needs of Yemen's energy matrix due to the growing energy demand which, in turn, is a result of a demographic and economic expansion. He called for the exploitation of the largely untapped gas potential in Yemen. Concluding his presentation, Lavergne spoke about the increasing gas initiatives from both sides. On the Ministry side it is allowing access to gas for contractors under Production Sharing Agreements (PSAs), the leading the promotion of domestic gas projects for the utilization of gas reserves in Yemen's Eastern Region. “TOTAL, for its part, is co-operating pro-actively with the Ministry,” Lavergne committed, “to promote gas projects in and around Block 10, as well as assist in open discussions, workshops and trainings in order to help authorities promote gas exploration in Yemen.”
Pascal Laroche presented the currently increasing demand for gas worldwide, projecting the demand in 2020. He said that gas production is far from having reached its peak and this will make gas one of the leading energy sources in the 21st century. He added that the Middle East with the large gas reserves held in Qatar and Iran will be a key player in the gas markets.
Olivier Journy then explained the gas chain specifications and challenges. The development and promotion on a large scale basis of a new industry and market such as gas involves many things in terms of regulations, infrastructures, investments, technology, etc. Journy proceeded with a brief comparison of the processes and stages through which the oil and gas go from the production process to the end user phase.
Anne-Laure Pelcerf analyzed the new PSA gas clause tabled by the Ministry of Oil and Minerals and the elements spurring gas development. “The decision to grant to contractors, under certain conditions, the right to explore, develop and produce gas on awarded blocks, “Pelcerf stated, ” is a very significant step forward in the direction of gas”. She compared the gas provision in existing PSAs with the new one and pointed out to the worldwide acceptance that the PSA terms for gas must be better than those for gas, especially at the promotion stage of this energy. Some international examples of incentives to promote gas exploration were provided.
Economist Xavier Mine, highlighted the economic impact on the fiscal terms and especially the cost recovery and gas marketing aspects.
The Minister of Oil and Minerals concluded the workshop by confirming that Yemen intends to take the turn towards gas decisively. He added that gas exploration and production is the main goal for government and this workshop was a good opportunity to better understand gas business issues from one of the leading players in the Yemen petroleum industry. He stated that continuing exchange of information and views on gas is highly needed for Yemen and that the workshop was a good initiative by TOTAL to offer its experience in this matter. “The Ministry of Oil and Minerals is working side by side with this French Company,” he added, “and its partners in the Yemen LNG project, as one of the largest projects in the country”.
*Abdulelah Taqi is head of public relations in Total E & P Yemen
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