Yemeni Government Forms Committee to Take Over Key Oil Field as Austrian Firm Exits

Saturday 6 May 2025 |1 day ago
Oil field in Shabwah –Archive

Barran Press

 


The internationally recognized Yemeni government has moved to secure a vital oil asset, directing the formation of a committee to take control of the Al-Oqla oil block (S2) in the Shabwah governorate. This move follows the departure of Austrian energy firm OMV, which ceased operations in the sector today.

Oil and Minerals Minister Saeed Al-Shamasi, in a memo reviewed by "Bran Press," ordered the immediate establishment of a 10-member committee to oversee the handover from OMV. The Austrian company, which has operated the field since 2018, concluded its work on Saturday.


The directive underscored the urgency of the situation. "Due to the early departure of the Al-Oqla sector contractor, and given the limited time remaining to complete the preliminary handover of the sector, specialized handover committees must expedite the completion of their duties," the memo stated. It emphasized the need to prioritize tasks to achieve the public interest in the seamless transfer of all facilities, assets, and documentation related to the block.
This development follows a May 24 directive from Prime Minister Salem bin Breik, instructing the Ministry of Oil and Minerals to establish a management board for the Al-Oqla oil sector effective June 1, 2025.

Bin Breik's order also included an urgent plan to pump available crude oil from the Al-Oqla (S2) storage tanks in Shabwah. This critical measure aims to secure fuel for the President's power station in Aden, the interim capital, which is grappling with severe electricity supply challenges.
OMV announced its complete withdrawal from the sector earlier this month, citing security tensions and disruptions to export supply chains. The company laid off all its Yemeni employees by May 31.
Yemen's oil exports have been severely hampered since October 2022, following Houthi attacks on the Al-Nashimah and Qana ports in Shabwah, as well as Al-Dhabba port in Hadramout governorate.
OMV was a prominent international energy company operating in Yemen for years and was the first international firm to resume crude oil production and export from the Al-Oqla field in Shabwah in April 2018, after a four-year hiatus due to the ongoing war.
Despite the company's production having fallen to 10,000 barrels per day from 15,000 before the conflict, its withdrawal represents a significant blow to a sector already in decline. Official data indicates that Yemen's oil production peaked at 450,000 barrels per day in 2007 but has plummeted to a mere 60,000 barrels currently, a direct consequence of the decade-long war that has devastated infrastructure and export operations.
 

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