95
south. Oil production has been dominated by two blocks, Masila (Block 14) and Marib-Jawf (Block 18) from two
prolific basins: Say`un - Al Masila and Sab`atayn. In the absence of further discoveries, reserves will be depleted over
the next decade. The Masila (Block 14) licence expired in late 2011, and operations have been taken over by a newly-
formed government operating company, which may impact production levels and future development. Several other
contracts are due to expire in the coming years which could exacerbate the situation further should extensions not be
granted. Small discoveries in the basement formation by Total and OMV may help reduce the decline in the immediate
future.
Yemen Liquids Production 2000-2022
0
50
100
150
200
250
300
350
400
450
500
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
'000 b/d
Source: Wood Mackenzie (April 2014), BP Statistical Review of World Energy (June 2014).
Yemen’s General Corporation for Oil, Gas and Mineral Resources (“
MOMR
”) is a collection of several state-owned
subsidiaries including: Yemen Oil Company (“
YOC
”), Yemen Refining Company (“
YRC
”), Petroleum Exploration and
Production Authority (“
PEPA
”), Yemen Gas Company (“
YGC
”), Oil Products Distribution Company, General
Department of Crude Oil Marketing and Safer E&P Operations Company (“
Safer
”). MOMR is responsible for managing
industry contracts and relations with operators and partners, as well as the government’s share of crude exports. All
entities within MOMR report to the Ministry of Oil and Mineral Resources, which is responsible for national oil policy.
International and foreign national oil companies, including Occidental Petroleum, Total E&P and ExxonMobil operate in
Yemen under PSC contracts. See “
The Group’s business—The Group’s operations—Yemen—fiscal regimes
.”
Yemen had total oil exports of 103,000 bbl/d and total domestic consumption of 157,000 bbl/d in 2010, according to EIA
estimates. Asian markets account for the majority of Yemen’s oil exports. With growing domestic consumption and
decreasing production, net exports are on a declining trend. Yemen has a 662-mile integrated network of oil pipelines to
transport oil from three major central production facilities to five oil export terminals.
Gas
According to the BP Statistical Review, as at 31 December 2013, Yemen had 16.9 Tcf (0.5 Tcm) of proven natural gas
reserves. Most of Yemen’s natural gas reserves are associated gas concentrated in the Marib-Jawf oil fields, which
contain 10 Tcf of proven natural gas reserves. Success in developing the liquefied natural gas (“
LNG
”) sector is
expected to increase interest in further natural gas exploration and production. In 2013, Yemen produced approximately
10.3 Bcm of natural gas.
Yemen Gas Production 2001-2020
