Yemeni Oil Minister to Asharq Al-Awsat: We Plan to Establish Refineries in Shabwa, Hadramout

Yemen Oil Minister Dr. Saeed Al-Shammasi (Asharq Al-Awsat)
Yemen Oil Minister Dr. Saeed Al-Shammasi (Asharq Al-Awsat)
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Yemeni Oil Minister to Asharq Al-Awsat: We Plan to Establish Refineries in Shabwa, Hadramout

Yemen Oil Minister Dr. Saeed Al-Shammasi (Asharq Al-Awsat)
Yemen Oil Minister Dr. Saeed Al-Shammasi (Asharq Al-Awsat)

Yemeni Minister of Oil and Mineral Resources, Dr. Saeed Al-Shammasi, expressed the government’s full readiness to resume the export of crude oil and liquefied gas, immediately after the announcement of the expected peace agreement under the auspices of the United Nations, in a way that enhances and supports the state’s general budget.

In an interview with Asharq Al-Awsat, Al-Shammasi pointed to discussions with Saudi Arabia to help restart the Aden refineries, stressing that the Kingdom’s support during the last period has greatly reduced the burden on the state’s general budget and the import bill.

Al-Shammasi participated in the Future Minerals Forum, which was hosted in Riyadh on Jan. 10-11. He said that Yemen was rich in many minerals that are used in the solar energy and alternative energy industries, such as lithium and silicon.

The minister highlighted the final discussions to establish an oil refinery and an integrated industrial zone in the Al-Dhaba region in Hadramout Governorate, in addition to a domestic gas project in the Masila sector, and studies to establish an oil refinery in Shabwa.

Al-Shammasi refuted news about the withdrawal of OMV from Yemen, indicating that the company has a global trend to shift from exploration and production to specializing in the production of alternative energy and marketing of crude oil

The Yemeni Minister of Oil and Mineral Resources also spoke about many important files, including production capabilities and expected investments.

-Participation in the Future Minerals Forum

Yemen’s participation in the Future Minerals Forum was aimed at presenting the country’s rare and very large mineral resources, Al-Shammasi said, adding: “This year, after a period of about 10 years, during which Yemen did not participate in any exhibitions on a large scale and provide samples of its great mineral resources..., we focused in the conference on some of the minerals that the world needs, especially those used in solar energy and alternative energy industries.”

He continued: “We focused on switching from fossil fuels to alternative energy in order to preserve the environment and humans. This trend is important, especially in light of the discoveries of some materials that are used in these industries, such as lithium.”

-Mineral wealth in Yemen

The Yemeni Minister of Oil and Mineral Resources indicated that his ministry has conducted several preliminary studies of the minerals that are available in most of the liberated areas. He revealed that during the forum, companies applied to establish a cement factory with an investment of $200 million in one of the southern governorates (Abyan, Shabwa, or Hadhramaut).

-Saudi support to restart Aden refineries

Al-Shammasi emphasized that the oil sector was one of the main pillars of the economy and contributed more than 70 percent of the state budget, but has been greatly affected by the war since March 2015.

He revealed advanced discussions with Saudi Arabia to restart Aden’s refineries, which he said constitutes a major priority for the ministry in 2024.

The minister continued: “In 2021, the Kingdom provided about $450 million to support oil derivatives. All of this undoubtedly reduced the burden very significantly on the state’s general budget and the import bill.”

-Foreign oil companies

Al-Shammasi admitted that foreign companies quickly react to any security developments that occur and declare force majeure, but at the same time, he explained that the situation has changed since the liberation of areas in the south, and parts of Marib, Taiz, and Hodeidah.

He underlined that “Yemen still requires the creation of a safe investment environment for these investments, stressing that investors were discouraged to come to a country that does not enjoy security, safety, and political and security stability.

The Yemeni Oil Minister reiterated that the Austrian company OMV has not withdrawn from Yemen, pointing out that it was following a global trend to shift from exploration and production to producing alternative energy and marketing crude oil.

-Readiness to export oil and liquefied gas

Al-Shammasi confirmed that the ministry is ready to export crude oil and gas immediately after announcing any peace agreement in the country, noting that Yemen’s leadership announced that in the first phase of peace, the export of crude oil and gas will be allowed in the first week of the agreement.

“We are ready at any moment for the peace process to begin and for us to be allowed to export crude oil. With regard to gas, we have recently launched a re-maintenance phase and have completed about 80 percent of the repairs of the Balhaf port,” he stated.

Commenting on the recent events that took place in the Marib oil governorate after raising the prices of oil derivatives, the Yemeni minister pointed to the government’s plan to unify the prices of oil derivatives throughout the country.

Al-Shammasi noted that Yemen welcomes all national and foreign investments in the field of oil, gas and precious metals, noting that the ministry was working to promote investment opportunities in all regional and international forums.

He said that final agreements were underway for two major projects in 2024. The first is the establishment of a refinery with an industrial zone in the Al-Dhabah region in Hadramout, with a production capacity of about 25,000 barrels in its first phase, and the second is the establishment of a domestic gas project in the Masila sector.



Russian Official to Asharq Al-Awsat: Mining Concessions Dependent on Ukraine Talks Progress

Alexander Ionov, a member of Russia’s Human Rights Council under President Vladimir Putin (Asharq Al-Awsat)
Alexander Ionov, a member of Russia’s Human Rights Council under President Vladimir Putin (Asharq Al-Awsat)
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Russian Official to Asharq Al-Awsat: Mining Concessions Dependent on Ukraine Talks Progress

Alexander Ionov, a member of Russia’s Human Rights Council under President Vladimir Putin (Asharq Al-Awsat)
Alexander Ionov, a member of Russia’s Human Rights Council under President Vladimir Putin (Asharq Al-Awsat)

Amid statements made by US President Donald Trump regarding the future of agreements brokered by Riyadh over the Russia-Ukraine crisis, a Russian official has expressed Moscow's readiness to make concessions on certain raw materials and mining activities under US negotiation.

However, the official linked these concessions to the outcomes of talks in Riyadh.

Alexander Ionov, a member of Russia’s Human Rights Council under President Vladimir Putin, revealed that the Russian side supports establishing relations with the US.

According to Ionov, Russia is willing to make concessions on certain raw materials and mining activities, but everything depends on the negotiations concerning Ukraine.

Speaking to Asharq Al-Awsat, Ionov pointed out that if progress is made in US-Russia understandings on Ukraine, and results are seen regarding the lifting of sanctions, that could potentially be the key to establishing normal, positive relations.

However, so far, Trump’s rhetoric remains purely political, with no concrete steps taken.

Regarding the potential inclusion of European Union countries in Ukraine-related negotiations at some stage, Ionov said that the negotiations are progressing, but the Ukrainian side is seeking to garner European support and set its own terms, which conflict with the views of both Russia and the US.

The White House is frustrated with Kyiv’s rhetoric, and Trump’s team is exerting significant pressure.

Ionov continued to say that everyone is waiting for the Black Sea agreement, reached by the Russian and US delegations, to come into effect.

However, it’s clear that this deal will only be effective after a ceasefire. In the meantime, Kyiv is losing territory, while Russia has liberated the Kursk region.

According to Ionov, European countries are eager to join the negotiation process, but for obvious reasons, they cannot be full participants. They support the Ukrainian scenario of autonomy, which means maintaining Ukraine’s territory as it stood in 1991.

He pointed out that leaders from many countries, especially France and the UK, have called for NATO peacekeeping forces to be deployed in Ukraine.

This is unacceptable to Russia, affirmed Ionov.

In general, we see an aggressive stance from European leaders who are willing to continue investing in this direction.

Ionov believes that US President Donald Trump wants to expedite the signing of a peace agreement on the Ukraine conflict, as he sees it as part of his election campaign.

However, the EU and Ukraine are slowing down the process, coupled with significant tensions in negotiations between the US and Russian delegations, with little progress made.

On the effectiveness of sanctions imposed on Russia, Ionov argued that Trump should find the real culprit in this whole matter, rather than threaten to impose restrictions on Russian oil.

In general, this will not have much impact on Russia’s economy, as the main consumers of Russian raw materials are not in the West, but in the East, confirmed Ionov.

Additionally, Russia has much greater influence over OPEC than the US. Saudi Arabia is actively cooperating with Russia and Venezuela on the oil market, and the US can do little about it at this point.

In reality, the Russian side supports building relations with the US, and it is willing to make concessions on certain raw materials and mining activities. But everything depends on the negotiations concerning Ukraine.

As for Saudi- Russian relations, Ionov reaffirmed that Russia engages with the Saudi people with warmth and kindness. Much work is being done at the official level, as Saudi Arabia is a key partner for Russia in the Middle East, he added.

Russian-Saudi cooperation shows a shared effort in developing the regional security framework, as well as advancing projects in humanitarian cooperation.

Ionov hoped the Kingdom will continue its efforts in developing joint energy projects with Russia and will participate in the BRICS alliance.