Yemen's official oil exports reach $ 2 bn in October
Official government oil exports were up by 6.5 % year-on-year (y/y) through October 2010 to 26.1 mm barrels, according to figures released by the Central Bank of Yemen. Rising oil prices have helped to raise year-to-date exports earnings from crude to just over $ 2 bn by the end of October, a 37.4 % increase from 2009. A drop in domestic consumption also helped to boost earnings as recent subsidy reductions on energy products helped to yield a 5.2 % y/y drop in domestic consumption of oil products to just over 20.8 mm barrels. Yemen is planning to increase exploration activities in order to produce 50 mm barrels of oil and 750 bn cubic feet of gas in 2013.
Yemen has entered the area of oil in the summer of 1984 upon the Hunt Oil Company announced the first commercial discovery of oil in Yemen (Alif Field). The well Alif produced an average of 8000 bpd. Oil was found in Block 18, Marib.
In September 1986, the production and export of the first oil shipment was executed from block 18 under the guidance of President Ali Abdullah Saleh.
Safer Company is the first ever national pioneering oil and gas company in Yemen to be legally assigned to assume Block No. (18) Marib-Al-Jawf whose PSA expired on Nov 14, 2005. The Company takes pride in its assumption of managing and operating this premier petroleum block of Yemen in a highly efficient manner according to the good practices of international petroleum industry.
Yemen's crude oil revenues have recorded sharp drop during the first half of 2009, according to a government report. This period's revenues are $ 665 mm comparing to the same period last year which reached $ 2,6 bn. Issued by the Central Bank of Yemen, the report said the retreat was the result of government's portion decrease of the gross oil exports during the same period to 12,8 mm barrels from 23,8 mm for the same period on 2008 with fall- off estimated at 11 mm barrels. On the contrary, domestic consumption of oil for this period has recorded significant increase estimated at 1,7 mm barrel to reach 12,6 mm comparing to 10,9 mm for the first half of 2008.
Economists warn against the government's continuous dependence on oil as a prime strategic source generating revenues to supply development projects in Yemen. Oil revenues still represent nearly 75 % of public budget's resources even oil production is witnessing continues decrease started by 5 %, according to international reports