Korea National Oil Corporation (KNOC) has abandoned an oil concession in Yemen and handed it back to the central government in Sanaa.

South Korean media stated the reason behind the decision was the low reserves at the concession, Yemen gas field No 4, made it impossible for the company to turn it into a profitable concern.

The scheme has so far cost the KNOC-led consortium $81.5m. Other members of the partnership include South Korea’s Hyundai Heavy Industries and the Hanwha Group.