PETROLEUM COMPANIES EYE PRODUCTION SHARING EXTENSION

SANA'A, Sep. 30 (Saba) - 90 percent of petroleum companies in Yemen are demanding to extend the stated production sharing contracts signed with the Yemeni government, a report by the Oil Exploration and Production Board has said.

24 out of a total of 27 companies working in Yemen filed the request that means to reconsider exploration periods, the report said.

It noted that the current plans of the board were drawn up based on developing the production sharing contracts through clarifying texts of the agreements, such as those on establishing joint companies after oil discoveries under direct supervision by the board.

The board is working on setting a scientific standard text applied at petroleum fields for oil costs, sharing production and production costs, approving a scientific and professional definition of capital and operation costs, and kinds of assets, operations and services covered by these costs, it added.

According to the report, the board is also trying to identify technical conditions, obligations to survey and drilling based on characteristics of every site, identify the minimum economic conditions of contracts based on initial forecasts over reserves taking into account risks, approving balanced distance for concession blocks.

The board, moreover, encourages exploration companies to implement three-dimension surveys during the first exploration phases to have a more precise picture over the geological situation and reviewing company commitments to geophysical surveying at the offshore and onshore blocks.

Yemen has signed 88 production sharing agreements, with the number of petroleum sites reaching 100 including 37 exploration sites won by 17 companies, 12 production sites won by 10 companies, 50 open sites, and only one approved site.

There are also 40 oil services companies in the country.

FR