Yemen oil production coming back online

19 July 2011

Occidental and OMV resuming output

Production has resumed at the Al-Nagyah oil field following the repair of the damaged pipeline in the Marib basin of central Yemen.

The US’ Occidental Petroleum is currently ramping up production and has resumed shipments of crude oil through the pipeline, which runs to the port of Ras Issa on the Red Sea, according to Canada’s Transglobe. The firm holds a 25 per cent stake in Block S-1, which contains the Al-Nagyah field.

Production has hit 8,300 barrels a day (b/d), Transglobe said in a statement on 18 July.

Austria’s OMV is also reported to be preparing to restart production. Production in 2010 was 6,600 barrels of oil equivalent from Block S-2.

The 120,000 b/d Marib export pipeline was attacked in mid-March. Local tribal groups had been preventing the repair of the pipeline due to a dispute with the government. The pipeline was attacked again in early July, but an agreement was reached between state-owned oil company Safer and the tribes in the area to replace the damaged section (MEED 6:7:11).

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