Yemen Safer plans to produce 50 mln oil barrels in 2013

SANA'A, Oct. 24 (Saba) - A
Yemeni oil company is planning to increase explorative activities in order to
produce 50
million oil barrels and 750 billion cubic feet of gas in 2013.
Executive chairman of Safer Exploration and Production Operations Company Mohammed
al-Haj was quoted on Saturday by the state-run 26Sep.net as saying that the main
purpose
is to compensate for decrease in producing oil, indicating that the company has 58
oil wells.
In April the company started executing a three-dimensional seismic survey over 1600
square kilometers, al-Haj said.
Yemen has entered the area of oil in the summer of 1984 upon the Hunt Oil Company
announced the first commercial discovery of oil in Yemen (Alif Field). The well
Alif 1
produced an average of 8000 Barrel Per Day (BOPD). Oil was found in Block 18, Marib.
In September 1986, the production and export of the first oil shipment was executed
from block 18 under the guidance and reign of President Ali Abdullah Saleh.
Safer Company is the first ever national pioneering oil and gas company in Yemen to
be legally assigned to assume Block No. (18) Marib-Al-Jawf whose PSA expired on Nov
14,
2005.
The Company takes pride in its assumption of managing and operating this premier
petroleum block of Yemen in a highly efficient manner according to the good
practices of
international petroleum industry.
Yemen's crude oil revenues have recorded sharp drop during the first half of 2009,
according to a government report. This period's revenues are $ 665 millions
comparing
to the same period last year which reached $ 2, 6 billion.
Issued by the Yemen's Central Bank (YCB), the report said the retreat is the result
of government's portion decrease of the gross oil exports during the same period to
12,8
million barrel from 23,8 million for the same period on 2008 with fall- off
estimated at 11 million barrel.
On the contrary, domestic consumption of oil for this period has recorded
significant increase estimated at 1, 7 million barrel to reach 12, 6 million
comparing to 10, 9
million for the first half of 2008.
Economists warn against the government's continuous dependence on oil as a prime
strategic source generating revenues to supply development projects in Yemen. Oil
revenues
still represent nearly 75 percent of public budget's resources even oil production
is witnessing continues decrease started by 5 percent, according to international
reports.
The government is planning to cut down oil subsidies almost to 40 percent within
plans to organize and reshuffle public expenditure in line with the national agenda
for
reforms 2009-2010.
The report showed the annual subsidies for oil derivatives are YR 759, 2 billions
and YR 6 billions for electricity.
YA