• 4 minutes Will Libya Ever Recover?
  • 9 minutes USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 13 minutes What Can Bring Oil Down to $20?
  • 16 minutes Venezuela continues to sink in misery
  • 20 hours Alberta govt to construct another WCS processing refinery
  • 7 hours Rage Without Proof: Maduro Accuses U.S. Official Of Plotting Venezuela Invasion
  • 11 hours Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 11 hours Instead Of A Withdrawal, An Initiative: Iran Hopes To Agree With Russia And Turkey on Syrian Constitution Forum
  • 22 hours Let's Just Block the Sun, Shall We?
  • 12 hours Water. The new oil?
  • 8 hours Storage will in time change the landscape for electricity
  • 2 days Quebecans Snub Noses at Alberta's Oil but Buy More Gasoline
  • 2 days U.S. Senate Advances Resolution To End Military Support For Saudis In Yemen
  • 2 days OPEC Cuts Deep to Save Cartel
  • 11 hours Regular Gas dropped to $2.21 per gallon today
  • 2 days Global Economy-Bad Days Are coming

YEMEN: Chaotic Venue Offers Up New Exploration Tenders

Bottom Line: Yemen is offering up new oil exploration licenses citing a great interest by foreign oil companies, but the truth is that this venue presents THE HIGHEST political risk of any venue anywhere in the world. 

Analysis: Bidding ends on 15 May and the licenses up for grabs are in the al-Sabaateen Basin, al-Rub al-Khali Basin and the Aden-Abyan Basin, according to the country’s Oil Ministry. Some of the sectors included have never been explored. There are 15 blocks (10 offshore and 5 onshore) up for auction and 20 April is the deadline for letters of intent. Earlier in April, Yemen accepted bids from nine companies for five exploration blocks.

There is massive political risk to investing in Yemen, not the least of which is the fact that the government hasn’t even come close to solidifying control over its oil resources, which will determine who can buy the most political patronage to form an authoritative leadership. Oil fields and pipelines are the key targets of attacks by various groups vying for power. Most recently, last week seven people were killed in clashes between army deserters and tribesmen in the south. Also last week, two Yemeni government soldiers were killed and two were wounded in a gunfight with tribesmen who had blown up the main Maarib oil pipeline in south Yemen two weeks after it was repaired from a previous attack. This is weekly fare for Yemen, and though the country has huge oil reserves and is strategically positioned…

To read the full article

Please sign up and become a premium OilPrice.com member to gain access to read the full article.

RegisterLogin

Trending Discussions




Oilprice - The No. 1 Source for Oil & Energy News