Total acquires 36% interest in block 72 in Yemen (Masila Basin) that is operated by DNO. (ArabianOilandGas​.com)

Good article by Daniel Pargman on Yemen’s increasingly insoluble problems. As reported by Al Neft, Yemen main export, oil is declining rapidly. To compound problems facing the country, water shortage is becoming even more evident. Yemen’s water share per capita is less than 100 cubic meters a year, compared to a poverty line of 1,000 cubic meters and world average of 2500 cubic meter of water per person.  Yemen’s Insoluble Problems | Energy Bulletin.

Oil Search which is 17% owned by Abu Dhabi’s IPIC, announced second gas discovery (Tubb’a 1)  in Yemen with poetntial to produce 9 million cubic feet per day of gas.

Yemen has been betting on gas as its oil production profile is in deep decline (around 8%). Yemen with Total developed LNG facility which can produce 6.7 million tonnes per year of LNG gas. (The National)

Yemen to invest $ 1.5 billion to boost power generation by 1,400 MW to end constant outages in the country. (AMEinfo)

Bank of America Merrill Lynch Global Energy Weekly research report (Report PDF).  The main points of the report:

• Sees Non-OPEC production peaking in 2011 to 52.3 million barrel per day (51.8 million in 2010) and then face consistent decline threafter – OPEC to take over
• Non-OPEC Production Growth will be in selected regions such as Latin America, Russia, Africa and China.
• Iraq and Nigeria vast potential regarding production can pose risk to ML outlook. Nigeria can add another 1 million barrels a day if conflict in the country is resolved. ML is skeptical of Iraqi target to quadruple production within a decade. Still this could put a lid on prices rising above $100in the longer term.
• ML has Q3 2010 WTI Oil Price target of $90 per barrel.

… Continue Reading

Yemen’s oil revenue is down from $4.2 billion in 08 to US$ 2 billion in 09. Doing a bit of number crunching on Yemen’s production, it means that the Gov share of exported production accounted to 115,000 bpd in 08 compared to 85,000 bpd in 09 out of total of 300,000 bpd (Gov & Concessions) taking into account price variation on grades / Brent – WTI.

Alarmingly, local consumption is rising fast – importing around 150,000 bpd in refined products (source: EIA) and growing at approx. 7% annually between 1994 & 2008. … Continue Reading