LONDON (1 October 2015)—The continuing deterioration of security conditions in Yemen has led to several international oil companies withdrawing from their operations in the country, with a once-significant source of global supply being reduced to marginal volumes, says an analyst with research and consulting firm GlobalData. Oil production in Yemen peaked at 441,000 barrels per day (bd) in 2001, but this decreased to 125,000 bd in 2014 and is forecast to fall to as low as 30,000 bd in 2015. According to Ali Al-Killidar, GlobalData's analyst covering oil and gas, production was completely offline for long periods in previous years as a result of frequent attacks on the country’s oil and gas facilities and strike action by oil field personnel. Yemen’s government has recently reported losses from the attacks exceeding $4 billion in the past three years. A total of 34 oil and gas firms have left Yemen in recent years and it is likely that local inexperienced operators will be left to manage what remains of the oil industry. The damage caused to Yemen’s oil and gas infrastructure and industry reputation will take at least five years to return to pre-conflict levels, with production first expected to arrive from fields with the largest remaining reserves in 2019.
Thu, 10/01/2015 - 00:00