OIL |
Historical Rundown of Oil Exploration in Yemen The beginning of the search and exploration for oil in Yemen goes back to the 1930’s of the twentieth century. In particular it was in 1938 when Iraq Petrol Company carried out seismic in some Yemeni areas. Then internal seismic operations were carried out by foreign companies in the 1950s and 60s. This continued in the 70s and the outset of the 1980s. All of that ensued to the following:
In addition, oil discovery in block S1 was announced to have been done and production would possibly start in the second half of 2006. This is Yemen with very humble potentials to serve the people and the homeland.
Oil Blocks in Yemen
Following the discovery of commercial amounts of oil in the eastern and mid areas of Yemen, the number of international oil companies working in oil exploration and production increased rapidly. Yemen has very large concession areas distributed between its middle and eastern parts. In addition, offshore areas are of a big volume located in Aden Gulf, the Red Sea and Soqatra Island.
On close scrutiny of the Yemeni oil map, it is possible to infer the following:
In fact, oil is the main source of energy in the Republic of Yemen. Because of its fundamental significance, the Yemeni government considers oil as the basic element for building its national economy. Oil is used in financing the construction of socio-economic and development projects which constitute the infrastructure of the national economy. It is also the source of extracting useful derivatives and products exploited in different basic industries.
More over, the oil reserves of the Republic of Yemen estimate at 9,718 billion barrels. It is worth noting that fresh information on sedimentary basins in Yemen indicates that there are many promising concession areas located at 12 sedimentary basins. At the time being, Yemeni oil production is only from 2 sedimentary basins out of the above-mentioned 12. Producing oil only from two basins gives us more inspiring and optimistic indicators. Other indicators are the 87 blocks, out of which only 12 produce oil. Yet, the size of a block differs from one to another. The average size of a block is 4 thousand square kilometers unlike safer block whose area is 8 thousand square kilometer, an area close to that of Lebanon or Palestine. This indicates that Safer Company, the new operator of the block, is still at its beginnings as it is working in a very small part of the block.
In addition, there is an orientation towards exploiting offshore blocks located at the Arab Sea, Aden Gulf, and the Red Sea. Historically speaking, an oil company carried out drilling operations between Al-Mukalla and Sayhout. The result was the discovery of 3 thousand barrels in one of the wells but because of political reasons, the well was closed down. That was a very simple indicator, so now there is an Australian oil company working on block 15. It would start exploration in January 2007. Promoting the offshore blocks would start at the beginning of 2007. Another crucial indicator of Yemen’s oil potentials is that in the 14 blocks under promotion there are more than 60 oil companies applying and proposing to operate them. The coming of such companies to Yemen is a very good omen to Yemen and in other words it indicates that such companies have sufficient and accurate data and indicators of the future of investment in Yemen
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