YEMEN - Recent Exploration.

Despite declining output in mature fields, Yemen's goal is to raise oil output to more than 500,000 b/d. Oil exploration has accelerated since 1997, after a downturn following Yemen's civil war in 1994 (see background in Vol. 62). In July 2005, San'a' completed an upstream bidding round with the award of seven blocks, six onshore and one offshore. Companies winning blocks included Oil Search of Australia (Blocks 7 and 74), Dubai-based al-Thani (Blocks 34, 37 and 55), and Occidental Petroleum (Oxy - Block 75).

In March 2006, PEPA selected 34 firms - out of 63 companies which applied by the mid-February deadline - for its third exploration licencing round involving 14 new blocks onshore and offshore. These include Total, OMV, Petronas, Nexen and Occidental (Oxy). All blocks are to be awarded on July 5, in the hope that successful exploration will offset a steady decline in oil output at the country's two main production Blocks 14 and 18 (see Part 2). The shortlisted companies were given until May 10 to review the data on the 14 blocks. Bids were invited on May 20, with a bid deadline of June 10.

The concessions cover acreage in the Rub' al-Khali, Aden-Abyan, Ma'rib-Sab'atain, Tihama, Bel Haf-Hajar, and Say'un-Malila basins, as follows.

Block 11, al-Khadrah, covering 10,438 sq km in the Rub' al-Khali basin;

Block 12, North Sanau, covering 7,867 sq km in the Rub' al-Khali basin;

Block 17, Aden/Abyan, covering 19,385 sq km in the Aden-Abyan basin;

Block 19, al-Jawf, covering 8,424 sq km in the Mar'ib-Sab'atayn basin;

Block 23, Antufash, covering 8,361 sq km in the Tihama basin;

Block 28, North Bel Haf, covering 4,465 sq km in the Bel Haf-Hajar basin;

Block 29, South Sanua, covering 9,237 sq km in the Rub' al-Khali basin;

Block 30, Habroot, covering 8,276 sq km in the Rub' al-Khali basin;

Block 57, al-Rayan, covering 10,963 sq km in the Rub' al-Khali basin;

Block 79, North al-Khadrah, covering 7,990 sq km in the Rub' al-Khali basin;

Block 80, West Saar, covering 1,961 sq km in the Say'un-Masilah basin;

Block 82, Wadi Amed, covering 1,853 sq km in the Say'un-Masilah basin;

Block 83, Wadi Arat, covering 364 sq km in the Say'un-Masilah basin;

Block 84, Ghayl bin Yamin, covering 731 sq km in the Sayun-Masilah basin.

The blocks have been tendered on the basis of San'a's standard production sharing agreement (PSA).

The pre-qualified bidders are: Addax & Oryx Group of Switzerland, Anadarko of the US, Apache Corp. of the US, Burren Energy of the UK, DNO of Norway, Dragon Oil of Ireland controlled by the Dubai government, Gujura State Petroleum Corp of India, Japex of Japan, MedcoEnergi of Indonesia, Melrose Resources of the UK, Mitsui E&P Middle East of Japan, MND of the Czech Republic, Nexen of Canada, Occidental Petroleum (Oxy) of US, OGDCL of Pakistan, Oil India, Oil Search of Australia, OMV of Austria, ONGC Videsh of India, Orient Petroleum Int'l of Pakistan, Pakistan Petroleum, Petrobras of Brazil, Petrogas of Oman, Petronas of Malaysia, Quest Oil Corp of the US, Reliance Industries of India, Repsol/YPF of Spain, Sinochem of China, SK Corp of South Korea, Sonatrach of Algeria, Svenska Petroleum Exploration of Sweden, Total of France, TPAO of Turkey, and Woodside Petroleum of Austria.