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Oil Revenues to Constitute 60% of Govt Budget, Says Yemeni Minister

Oil Revenues to Constitute 60% of Govt Budget, Says Yemeni Minister

Thursday, 2 January, 2020 - 10:45
A Yemeni oil worker looks out at the Aden oil refinery after it was re-activated on September 5, 2016, following a year of closure due to the ongoing conflict [SALEH AL-OBEIDI/AFP/Getty Images]

Yemen’s Oil and Minerals Minister Aws al-Awd has affirmed the government’s attempts to raise its oil production to about 80,000 barrels per day (bpd) in Q1 2020 from its current estimated 50,000 bpd.

“All the plans put aim at increasing production while also ensuring secured vital sites that are affiliated with the Ministry and under the Saudi-led Coalition support,” he stressed.

He also expected the oil and gas sector to provide about 60 percent of the state’s revenues for the current year, enabling it to pay workers’ wages and support service sectors.

In a phone call with Asharq Al-Awsat on Wednesday, Awd said his country’s government is working with the support of Saudi Arabia and the coalition forces to secure the export of gas from Yemen to various locations, which will positively reflect on the state’s public budget.

He pointed out that US and Chinese companies, specialized in oil and gas, have expressed their interest and desire to enter the Yemeni market and conduct drilling and exploration work in sites run by the legitimate government.

The Oil and Minerals Ministry has an ambitious plan, the Minister noted, adding that it has been working hard with partners to complete many projects.

These projects include the construction of another pipeline network from sector “S2” to Sector 4, which is operated by an Austrian company, and will be completed in June, he explained.

In 2019, the Ministry completed the pipeline network from Sectors 5 to 4 west of Ayyad, he said.

After completing the current project of laying pipelines, Awd said Yemen will have two strategic options for export. Either from “Ras Isa” in al-Hodeida Governorate or from Mishima port on the Arabian Sea in Shabwa Governorate.

During the first three months of this year, the government will begin building an oil complex in the temporary capital of Aden.

The complex will include all agencies, sectors, and companies, as well as the oil ministry, according to Awd, and it is expected to be completed within two years.

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