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OIL AND GAS
U.S. confident oil-rich Yemen will withstand threats
by Daniel J. Graeber
Washington (UPI) Oct 16, 2014


disclaimer: image is for illustration purposes only

With a major oil company fearful of the security situation in Yemen, the U.S. State Department said it's confident the government in Sanaa will stay in place.

The Yemeni government is facing dueling threats from the northern Houthi rebel movement and southern separatist groups that at times have been associated with al-Qaida.

U.S. State Department spokeswoman Jen Psaki told reporters during her regular press briefing she was concerned especially by Houthi rebel action, adding they were inconsistent with existing national partnership agreements.

Longtime Yemeni President Ali Abdullah Saleh stepped down in the aftermath of the Arab democratic revolts known as the Arab Spring. Psaki said Wednesday she was confident the government of President Abd Rabbuh Mansur Hadi, which replaced Saleh's, would stay in place amid the latest pressure.

Her confidence came the same day that Norwegian energy company DNO International declared force majeure in Yemen, meaning it was freed from contractual obligations because of circumstances beyond its control.

"Production in the republic of Yemen remains stable at over 7,000 barrels per day across the operated and non-operated blocks, notwithstanding the current security and political environment," the company said. "However, DNO is not yet able to resume drilling activities or the development of previous discoveries [because of insecurity]."

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A new 24-inch oil pipeline from the Kurdish north of Iraq will facilitate exports through Turkey by the end of the year, DNO International said Wednesday. Swedish energy company DNO, one of the premier operators in the Kurdish north of Iraq, said it was exporting an average 90,000 barrels of oil per day from its Tawke field in the region to Turkey. Installation of a new 24-inch p ... read more


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