Productive sectors

Oil produciotn in various oil blocks  could be divided as follows

Al-Masila Block in Hadhramout ranks first place among other oil blocks in the republic of Yemen. its annual production capacity in 2006 totaled to about 51.7 million barrels, representing 39% of the total oil production

Mareb Al-Jawaf Block ranks second as its annual oil production in 2006 accounted for 25.1 million barrels, representing 19% of the total oil production.

Janah Block’s production reached 12% out of the total production in Yemen, followed by other oil blocks

A large portion of the Yemen’s governmental activities focused on developing and bettering Yemen’s oil sector. Oil was and still is a major factor in the whole economic growth. General consumption and investment relied on oil as oil returns accounted for 70% of public revenues. But the fluctuation in prices and the country’s instability impacted greatly the economic growthplans and the political stability as well. Accordingly, the decrease of oil prices and/or low production rates significantly defected Yemen’s balance of tradeand greatly harmed the oil sector. This is so because of the current war in Yemen. However, recently following the efforts exerted by the current government to secure and protect oil companies, improve the investment environment, some companies have started to return to their oil sites and resume their investment, which means an excellent omen for the recovery of and promising future for this sector.

New Oil Blocks
Reports have shown that six exploration blocks have started to produce oil in the last couple of years. Yet, the war has caused their investment activities to stop. At the time being, however, maintenance and rehabilitation activities are under way

It is estimated that Yemen’s oil reserves amount to 9.10 billion barrels while gas reserves account for 2.18 trillion cubic feet.

Based on the information under our hands, a seismic surveywas conducted by Sinopec, a Chinese company, in Block No. 1 of Al Amaqain area. The indicators of this seismic survey have proven the discovery of large oil quantities coinciding with the discovery of major oil reserves in the basement rocks of Shabwah area itself. Such new discovery is seen as the most important following the large oilddiscoveries in Mare’b and Masila in 1980’s

According to the US Energy Information AdministrationYemen has huge oil reserves.  In addition, a number of economic reports and studies have confirmed that Yemen has a large oil reserve, totaling to 34% out of the world oil reserve. Actually, it is believed that the biggest oil source in the world is located in the Yemeni-Saudi border. Thus, if Saudi Arabia’s oil reserve accounts for 34% of the world oil reserve, then the discovery of oil wells in Yemen make Yemen possess 34% of the world’s additional oil reservesYemen’s share of crude oil exports gained from production sharing activities with foreign oil companies accounted for about 63% of the country’s total exports, forming 30% of Yemen’s GDP

In the past years Yemen depended primarily on crude oil revenues, covering about 70% of the Government’s public budget resources. Oil revenues further constituted 63% of the country’s total exports and 30% of the GDP.

Oil production from 2005-2010​

International Oil Companies Working in Yemen