Yemen - Key Companies and Licensing

Key companies

• Total is largest resource holder due to interest in Yemen LNG
• Partners are: Hunt Oil and SK Energy
• Occidental is most significant IOC not in Yemen LNG
• Acreage, reserves and production reduced following expiry of Masila block in 2011
• Its East Shabwa (Block 10) is due to expire in 2015 - extension unlikely to be granted
• Nexen was also a key player in Yemen until expiry of Masila block (Block 14)
• Low capex in 2013 reflects maturity as an oil producer
• Spending likely curtailed until licence extensions are negotiated

Licensing

• In 1990s, PSC terms became less favourable following spate of discoveries and developments
• Led to many relinquishments in mid-1990s
• Yemen subsequently improved the terms on offer and 14 PSCs were signed in 1997-98
• Four rounds held between 2004-7
• However, work programmes were held up by delays to the award ratification process
• 2006 licences were only ratified in 2009
• For the 2007 bid round for offshore blocks, no bids were received and bid round was abandoned
• Deepwater blocks are far from infra, in insecure areas and prospectivity unknown - unlikely to attract much interest

Yemen LNG