King Helü of Wu
Banned
January 24th, 2006
The spokesmen of Yemeni Ministry of Oil and Mineral Resources said yesterday that a huge reservoir of oil has been found in the western part of the coastal Al Hudaydah Governorate.
The location of the field is almost perfect. No part of the oil field extends into foreign territories, and the Governorate is under state control with few rebels.
Measuring 250 by 70 km, it is by far the largest conventional oil field in the world. It is estimated to have 120 Billion Barrels of recoverable original oil. This might elevate Yemen from one of the poorest Arab country to the 3rd largest producer in the world, after Saudi Arabia and Iran.
Currently, Income from oil production constitutes the bulk of government revenue and exports. But until recently, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government. This is expected to change as the Ministry of Oil and Mineral Resources claims monopoly on the new reservoir.
President Salleh said that the revenue generated is going to be used on "people's well-being", namely healthcare, education and public projects. Independent observers, however, warned that the vast majority of it is going to go to the military, as the government is expected to step up its actions against rebels.
Two divisions of government troops have already been sent to that region to protect the oil field. No rebel group have yet claimed ownership over it.
The spokesmen of Yemeni Ministry of Oil and Mineral Resources said yesterday that a huge reservoir of oil has been found in the western part of the coastal Al Hudaydah Governorate.
The location of the field is almost perfect. No part of the oil field extends into foreign territories, and the Governorate is under state control with few rebels.
Measuring 250 by 70 km, it is by far the largest conventional oil field in the world. It is estimated to have 120 Billion Barrels of recoverable original oil. This might elevate Yemen from one of the poorest Arab country to the 3rd largest producer in the world, after Saudi Arabia and Iran.
Currently, Income from oil production constitutes the bulk of government revenue and exports. But until recently, Yemen relies heavily on foreign oil companies that have production-sharing agreements with the government. This is expected to change as the Ministry of Oil and Mineral Resources claims monopoly on the new reservoir.
President Salleh said that the revenue generated is going to be used on "people's well-being", namely healthcare, education and public projects. Independent observers, however, warned that the vast majority of it is going to go to the military, as the government is expected to step up its actions against rebels.
Two divisions of government troops have already been sent to that region to protect the oil field. No rebel group have yet claimed ownership over it.
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