96
Source: Wood Mackenzie (April 2014).
In recent years, the Yemeni government has sought to address the country's declining revenue from its dwindling oil
output by monetising gas. In 2009, the country commissioned Yemen LNG, an integrated upstream LNG plant project
consisting of two identical trains, each with a production capacity of 3.35 mmtpa of LNG. At a cost of US$4.5 billion,
the LNG plant is the most expensive investment ever made in Yemen and will help offset declining foreign revenues as a
result of decreasing oil output. With the exception of the Total-led East Shabwa gas utilisation project supplying the
Public Electricity's power plant, no other gas in the country is utilised. The government however is understood to be keen
to move away from heavily subsidised diesel generated power generation, and incentivising gas on commercial terms is
seen as a means of achieving this, as well as attracting interest in open acreage that the Ministry of Oil and Minerals
(MOM) has struggled to award.
Oman
Oil
Oman is the largest non-OPEC producer in the Middle East. Crude oil output has increased year-on-year since 2008,
after years of declining production. This is largely down to the success of Oman's major enhanced oil recovery (EOR)
project at the Mukhaizna field, and the stabilisation of production on PDO's Block 6, Oman's main producing area. PDO
has also implemented a number of EOR initiatives to maintain its own crude production around 550,000 over the next
five to eight years.
According to the BP Statistical Review, Oman had total proven oil reserves of approximately 5.5 billion barrels as at 31
December 2013, with no change from 31 December 2012. Oman’s reserves are found mainly in the northern and central
onshore areas, comprised of disparate clusters of smaller fields. According to the BP Statistical Review, Oman’s total oil
production averaged approximately 942,000 bbl/d in 2013. Oil production in Oman has increased by more than 33%
from a low of 710,000 bbl/d in 2007.
Oman Liquids Production 2000-2020
