Signing Memorandum of Understanding with American Oil Company [Archives:2001/44/Business & Economy]
The Ministry of Oil signed a number of oil production agreements with entrepreneurs and investment companies in two important areas in the Al-Kamar Gulf, Al-Mahra governorate. In a statement to YT Barabba, Yemen’s Minister of Oil, said the main purpose of the memorandum was to encourage oil investment in Yemen. YT has done its best to find out more information about oil sectors, the possibility of investment, the pioneering companies in oil exploration and the conditions of investment. Chairman of the Petroleum Exploration &Production Board, Eng. Nabeel Al-Qowsi said the map has been prepared to specifically show oil distribution areas. He added that around six oil production sectors had been given to six companies, namely: Hunt, Canadian Nexen, Total, Deno Hungarian Company and a Yemeni company. The British Dove Company works in sector 35, and at the end of the year, the company will be producing about 15 thousand barrels a day.
Sixteen international oil companies are currently conducting seismic surveys and biophysical drilling. This will constitute a productive promising capacity. Concerning the sectors which are still open to the international companies, Al-Qowsi said that around two sectors had been entrusted to an American company and four others to a Norwegian company.
Concerning the sectors located in the sea, Al-Qowsi said around 62 sectors located in Al-Kamar Gulf were entrusted to American companies. There is also the seismic survey in the deep-sea waters in which around 2000 km of seismic surveys have been conducted and the second phase of the seismic surveys in the north of Socatra totaling 3 thousand km.
The oil map has been developed depending on scientific information and geological formation. With regard to oil reduction in some oil fields, Al-Qowsi said reduction was natural.
Oil production has increased to 450 barrels a day and will increase to 470 barrels. Privileges have been granted to the companies which are interested in investing in this field. The Chairman of the Cooperation emphasized the importance of propagandistic policies and facilities granted to the interested companies.