Minister of Oil boosts investment

Ameer al-Aidroos

The Yemeni Oil Minister Ameer al-Aidroos has confirmed that Yemen intends to increase its daily oil production by ten to fifteen percent, pushing the daily total 300,000 barrels per day. The minister affirmed that the ministry would hold negotiations with several international companies, including the Chinese Sinoc Corporation, in order to modernize the Aden refinery.

Yemen, a relatively small oil producer, currently pumps between 285 and 295 thousand barrels per day. Last year production peaked at around 287 thousand barrels.

In a recent meeting in Sana’a with the Russian Gas Prom delegation, a giant international oil company chaired by the Projects’ International Director Dimitry Kotulskiy, the minister discussed the investment opportunities within the oil and gas fields. The minister also spoke of the Russian company’s possible future investment in Yemeni gas and oil.

In addition to the talks with the Russian delegation, Yemeni representatives have also met with Chinese, Japanese, Indian, South Korean and Turkish companies, as the ministry has sought for the best fit for Yemen. Specifically, the ministry wants to modernize Aden Refinery’s operational capacity, bringing it to 150-500 barrels a day.

In effort to underscore the importance of these meetings, the minister  how the existing refinery’s capacity stood at the relatively tiny output of between 70 and 80 thousand barrels per day. He expects the refinery, located in the largest port within Yemen, to begin to reach its potential of 140 thousand barrels per day.

In the coming year, Yemen will export roughly 6.7 million tons of natural liquefied gas to South Korea, Europe, Mexico and the United States. The minister confirmed that a second pipeline is currently under construction and will begin operations within the next few months.

Negotiations with the Russian Gas Prom come as the result of continued efforts within the Yemeni government to attract large oil and gas companies. The larger corporations are often courted in order to exploit the oil and gas resources quickly, in addition to the increased efficiency with which these large corporations are able to explore, the minister explained.

The minister expressed his hope to create a new partnership, through which both parties would achieve greater heights within the oil and gas fields

He pointed out that the Russian delegation’s visit is the result of President Ali Abdullah Saleh’s recent visit to Moscow.

While in Moscow, President Saleh and his aids held meetings with several Russian international oil companies, including Gas Prom. The opportunities within the oil and gas sector open additional doors for Russian companies to invest within Yemen.

During the Russian delegation’s visit to Yemen, it will examine the characteristics and climates of the available investment opportunities. The delegation will also explore the details of the oil and gas sectors.

The Director of the Russian Gas Prom Corporation ensured the company’s desire to explore and discuss all available opportunities of cooperation in Yemen.

The Russian owned Gas Prom is the main distributor of gas to Europe. It began investment within the region as a leader in the industry. It is currently developing strong ties and coordination with gas exporting nations, including Yemen.

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