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Business & Economy
Written By: Yemen Observer Staff
Article Date: Nov 19, 2011 - 9:28:24 PM
Yemen’s Supreme Economic Council approved Saturday the establishment of a local company named "Masila Company for Petroleum Exploration and Production (PetroMasila)".
Chaired by the Premier Ali Mujawar, the council ordered to refer the company's establishment decision draft to the Cabinet for further discussion and finalizing the issuance legal procedures.
Under the decision, PetroMasila company will replace Nexen company in block 14 in Masila area, Hadramout province, after the date of December 17th, 2011 when the production sharing contract with Nexen company expires.
The article 7 of the decision draft stresses that PetroMasila runs and operates the block 14 according to the global petroleum industry standards, and acquires all the rights and privileges the former operator "Nexen" enjoys as well as all duties and obligations.
It also stipulates that the PetroMasila company, as received the block, to conduct further exploration and development operations by itself or via contracting with local and foreign specialists.
The Supreme Economic Council discussed a report of the Oil and Minerals Ministry on the future of the block 14 in Masila area and the available alternatives to run and operate the block.
Moreover, the council discussed a report on the local market and electricity sector's needs of oil derivatives. It affirmed the importance of providing all needed derivatives to meet the requirements and enhanced the necessary measures to crack down the black market that impacts the stability of local market.