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Yemen’s Oil Minister to Asharq Al-Awsat: Houthis Using SAFER to Blackmail Int’l Community

Yemeni Minister of Oil and Minerals Abdul Salam Baaboud (Photo: Saad al-Dossary)
Yemeni Minister of Oil and Minerals Abdul Salam Baaboud (Photo: Saad al-Dossary)
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Yemen’s Oil Minister to Asharq Al-Awsat: Houthis Using SAFER to Blackmail Int’l Community

Yemeni Minister of Oil and Minerals Abdul Salam Baaboud (Photo: Saad al-Dossary)
Yemeni Minister of Oil and Minerals Abdul Salam Baaboud (Photo: Saad al-Dossary)

Yemeni Minister of Oil and Minerals Abdul Salam Baaboud said that five international oil companies have resumed production after years of halt caused by the coup and the war that ravaged the country.

In an interview with Asharq Al-Awsat, the minister noted that major international companies specialized in oil field services, such as Baker Hughes and Schlumberger, have re-launched their operations, which he said was an important indication of the path towards the sector’s recovery.

For the first time since the coup, a number of exploration wells have been drilled over the past three months in Block 9, in addition to the completion of three-dimensional seismic surveys of 269 kilometers in the same sector, according to the minister.

Baaboud also said that the average oil production was around 55,000 barrels per day, adding that work was underway to restore production in Block 5 and export oil through the new pipeline, which means adding an estimated amount of 20,000-25,000 barrels per day in the early production phase.

“The government is deploying exceptional efforts to face many of the challenges produced by the coup. As oil is one of the most important contributor to our national economy, the Ministry of Oil and Minerals is working according to clear plans based on a strategic vision, the most important pillar of which was the completion of the institutional building of the ministry and its units,” he told Asharq Al-Awsat.

“In this context, we have re-activated the Petroleum Exploration and Production Authority (PEPA) in its new headquarters in the temporary capital, Aden. The Authority represents the institutional framework concerned with the supervision and technical monitoring of operating oil companies.”

The ministry has also formed a technical team to assess the damage incurred by the oil sector as a result of the war and to draft an integrated plan for the recovery and development process.

Asked about local and foreign oil companies currently operating in Yemen, Baaboud said: “The Ministry of Oil and Minerals has made great efforts to restore oil production in the different blocks… Block S1 in Al-Uqlah is operated by OMV, while Block 9 by Calvalley Petroleum... and these two are foreign companies.”

“There are also national companies that have re-launched their work, including the Safer Company in Block 18 of Maarib, and the PetroMasila Company in the blocks of Hadramout. Some major international companies specialized in oilfield services that have also resumed their activities, including, for example, Baker Hughes and Schlumberger. This is an important indication that the recovery has already begun for this important vital sector,” the minister remarked.

Yemen’s petroleum sector was the main tributary of the country’s economy. Before the Houthi coup, it contributed to the general budget by about 75 percent.

Asked about the sector’s contribution today, the minister said: “Certainly, Yemen’s production declined due to the coup and the war led by the Houthi militia… The state budget in normal circumstances depends mainly on oil revenues, which cover about 70 percent of the general budget resources, 63 percent of the country’s total exports, and 30 percent of GDP. In the wake of the coup, oil companies were forced to freeze their activities, and their employees left Yemen. Thus, estimating the state’s budget revenues and expenditures has become challenging.”

Baaboud highly valued the Saudi grant in support of the Yemeni government’s efforts to normalize the situation and restore stability in the country.

“Undoubtedly, the Saudi oil derivatives grant, which is the fourth, will have a great impact in supporting development and alleviating the suffering of citizens, as 80 power stations will be operated throughout the liberated governorates,” he underlined.

This will give the government time to devise future solutions to the electricity crisis, reduce the burden on the government’s budget, and contribute to stabilizing the Yemeni riyal exchange rate, according to the minister.

Asked about developments regarding the SAFER oil tanker and ongoing efforts to avert a disaster in the Red Sea, the Yemeni minister said: “The situation is getting worse day after day, as the Houthi militia continues to obstruct the efforts of the UN team. We have warned that these obstacles will lead to a disaster.”

“Unfortunately, the Houthi group is using the tanker to blackmail the international community and the Yemeni legitimacy, without any consideration of the consequences in the event of an oil spill. We call on the international community to assume its responsibilities and take this issue seriously and we appreciate the efforts of the United Nations to address this sensitive problem,” the minister said.

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Syrian Minister of Economy: Sanctions Relief Tied to Reforms

Syrian Minister of Economy and Industry Nidal Al-Shaar standing in line outside Al-Razi Bakery in Aleppo Province, listening to citizens’ concerns (Facebook page). 
Syrian Minister of Economy and Industry Nidal Al-Shaar standing in line outside Al-Razi Bakery in Aleppo Province, listening to citizens’ concerns (Facebook page). 
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Syrian Minister of Economy: Sanctions Relief Tied to Reforms

Syrian Minister of Economy and Industry Nidal Al-Shaar standing in line outside Al-Razi Bakery in Aleppo Province, listening to citizens’ concerns (Facebook page). 
Syrian Minister of Economy and Industry Nidal Al-Shaar standing in line outside Al-Razi Bakery in Aleppo Province, listening to citizens’ concerns (Facebook page). 

Syrian Minister of Economy and Industry Nidal Al-Shaar stated that while the serious lifting of US sanctions on Syria could gradually yield positive results for the country’s economy, expectations must remain realistic, as rebuilding trust in the Syrian economy is essential.

In an exclusive interview with Asharq Al-Awsat, Al-Shaar described the removal of sanctions as a necessary first step toward eliminating the obstacles that have long hindered Syria’s economic recovery. Although the immediate impact will likely be limited, he noted that in the medium term, improvements in trade activity and the resumption of some banking transactions could help create a more favorable environment for investment and production.

The breakthrough came after Saudi Crown Prince Mohammed bin Salman successfully facilitated a thaw in relations between Washington and Damascus, ultimately convincing the US president to lift sanctions on Syria. During his historic visit to Saudi Arabia last Wednesday, President Donald Trump announced he would order the removal of all sanctions on Syria to “give it a chance to thrive”—a move seen as a major opportunity for the country to begin a new chapter.

Al-Shaar cautioned, however, that Syrians should not expect an immediate improvement in living standards. “We need to manage the post-sanctions phase with an open and pragmatic economic mindset,” he said, stressing that real progress will only come if sanctions relief is accompanied by meaningful economic reforms, increased transparency, and support for the business climate.

He added that Syrians will begin to feel the difference when the cost of living declines and job opportunities grow—an outcome that requires time, planning, and stability.

According to Al-Shaar, the first tangible benefits of lifting sanctions are likely to be seen in the banking and trade sectors, through facilitated financial transfers, improved access to essential goods, and lower transportation and import costs. “We may also see initial interest from investors who were previously deterred by legal restrictions,” he said. “But it’s important to emphasize that political openness alone isn’t enough—there must also be genuine economic openness from within.”

He also underscored the importance of regional support, saying that any positive role played by neighboring countries in encouraging the US to lift sanctions and normalize ties with Damascus “must be met with appreciation and cooperation.” Al-Shaar emphasized that robust intra-Arab economic relations should form a cornerstone of any reconstruction phase. “We need an economic approach that is open to the Arab world, and we could see strategic partnerships that reignite the national economy—especially through the financing of major infrastructure and development projects.”

When asked whether he expects a surge in Arab and foreign investment following the lifting of sanctions, Al-Shaar responded: “Yes, there is growing interest in investing in Syria, and several companies have already entered the market. But investors first and foremost seek legal certainty and political guarantees.” He explained that investment is not driven solely by the removal of sanctions, but by the presence of an encouraging institutional environment. “If we can enhance transparency, streamline procedures, and ensure stability, we will gradually see greater capital inflows—especially in the service, industrial, and agricultural sectors.”

As for which countries may play a significant role in Syria’s reconstruction, Al-Shaar said: “Countries with long-term interests in regional stability will be at the forefront of the rebuilding process. But we must first rebuild our internal foundations and develop an economic model capable of attracting partners under balanced conditions—ones that protect economic sovereignty and promote inclusive development.”

The minister concluded by stressing that lifting sanctions, while significant, is not the end of the crisis. “Rather, it may mark the beginning of a new phase—one filled with challenges,” he said. “The greatest challenge isn’t securing funding, but managing resources wisely, upholding the principles of productivity, justice, and transparency. We need a proactive—not reactive—economy. We must restore the value of work and implement policies that put people at the center of development. Only then can we say we are beginning to emerge from the bottleneck.”

Last Wednesday, Riyadh hosted a landmark meeting between the Crown Prince, Trump, and Syrian President Ahmad Al-Sharaa—marking the first meeting between a Syrian and a US president since Hafez Al-Assad met Bill Clinton in Geneva in 2000.

Most US sanctions on Syria were imposed after the outbreak of the country’s conflict in 2011. These targeted deposed President Bashar Al-Assad, members of his family, and various political and economic figures. In 2020, additional sanctions came into effect under the Caesar Act, targeting Assad’s inner circle and imposing severe penalties on any entity or company dealing with the Syrian regime. The Act also sanctioned Syria’s construction, oil, and gas sectors and prohibited US funding for reconstruction—while exempting humanitarian organizations operating in the country.