Saudi and Emirati investors establish Yemen’s first private oil refinery
The government of Yemen recently approved the establishment of the first private oil refinery in the republic. Saudi and Emirati investors, who established the Hadhramout Refinery Company will carry out the construction of the new Mukalla refinery, reported the Yemen Observer. The cost of construction is estimated between $100 and 150 million.
Production capacity of the new refinery is expected to reach 25,000 barrels per day (bpd) with a gradual increase to follow, bringing capacity up to 100,000 bpd at a cost of $800 million, confirmed Yemen’s Minister of Oil and Minerals, Rashid Saleh Ba Raba.
The government is optimistic about the privatization project and has promised its support in providing all the necessary facilities to get construction underway, added Raba.
Yemen produced 480,000 bpd of oil in 2001, up from 440,000 bpd in 2000, 80 percent of which are imported. Oil revenues jumped 40 percent last year to an estimated $1.4 billion. Proven oil reserves in Yemen presently amount to four billion barrels. With oil being the country's main source of revenue, the government now seeks to increase its oil output to one million bpd.
Two refineries currently operate in the republic, one in the in the central province of Maareb, with a refining capacity of 10,000 bpd, and the other in the southern port city of Aden, producing 120,000 bpd. — (menareport.com)
© 2002 Mena Report (www.menareport.com)