Yemen Oil Production Drops Off to 315 Thousand bpd

The International Energy Agency predicted that Yemens oil production will drop off to 315 thousand barrels per day in 2008, instead of 335 thousand bpd during 2007.

However, Yemen is struggling to raise its oil production and redress field maturity at some of its older facilities, through efforts of Oil and Minerals Ministry and foreign investors.

Both parties are focusing on existing fields as well as exploration prospects in the onshore and offshore blocks. Yemen also clings its hopes on the large gas reserves that mount to 10.2 tcf, especially after the completion of Liquefied Natural Gas (LNG) project by the end of 2008.

Meanwhile, the agency declared that oil producers outside OPEC in the Middle East face a possible decrease in their oil reserves associated with low long-term growth.

The agency hinted the accumulated oil production from Bahrain, Oman, Syria and Yemen might decrease to 1.5 million bpd after the production mounting for 2 million bpd has been stable since 1995.

In this regard, observers believe Yemen will face hard circumstances and challenges particularly when 70 percent of the country's economy depends on this depleting source, unless the new onshore and offshore blocks prove to be commercially fruitful.