Luce Energy Interested In Yemen Gas Market
Nestled in the southern tip of the Arabian Peninsula, Yemen is highly reliant on oil money, which accounts for 70 percent of the budget. But total reserves amount to about 2.8 billion to 3 billion barrels.
- (1888PressRelease) May 25, 2011 - With Yemen's oil revenues plunging, the government's push into the gas market seemed like an economic saving grace for a state wracked by poverty and terrorism.
Nestled in the southern tip of the Arabian Peninsula, Yemen is highly reliant on oil money, which accounts for 70 percent of the budget. But total reserves amount to about 2.8 billion to 3 billion barrels.
In recent months, the government has tried to spark foreign interest: A delegation from Indonesia visited Sanaa, the Yemeni capital, in January to discuss investment in the oil and gas industry as well as the mining sector. And in February, France's Total signed a preliminary oil exploration deal for $32 million. The company was already leading a $4.5 billion liquefied natural gas plant that started production in October.
Major gas exports, however, are increasing for the Middle Eastern country. Some reserves are to be moved within the region by pipeline to Oman and possibly to Saudi cities like Jeddah, Sobhani said. Yemen is strategically advantageous to all liquid natural gas markets, both in the Asia-Pacific basin and on either side of the Atlantic Ocean.
Apart from drying-up oil reservoirs, the government is also contending with a legal process - and "mechanics on the ground" for exploring, producing and extracting gas - that are "not very well streamlined. Luce Energy hopes to enter into negotiations of being a partner with the Yemen government to enable Luce Energy to eventually acquire solely owned exploration rights.
Looking to the future, Yemen can meet the gas needs of other Gulf nations with enough resources for the next 20 or 25 years. The big part is to explore and set up a distribution system for the gas.
Luce Energy is integrally involved in the start-up of major liquefied natural gas projects in Yemen, and is now also pursuing the Yemen government to enter into negotiations, in order to acquire sole gas exploration rights.
Luce Energy:
Luce Energy was founded in 2007 and today is one of the leading privately held independent energy companies. Luce Energy, its subsidiaries and affiliated entities, engage in oil and gas exploration and production activities mainly in the Middle East region. In addition, Luce Energy is integrally involved in the start-up of major liquefied natural gas projects in Yemen.
Press Information:
Mahmoud Al Alawi
Press Coordinator - Luce Energy
press ( @ ) luceenergy dot com
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