20.000
%
Negative
122
mm boe
50
%
The civil war in Yemen has halted external O&G investment and the recent Houthi attacks have exacerbated issues. The uncertainty as to how the domestic and international issues will be resolved has created significant uncertainty, supports our Negative outlook, and is underlined by our upgrade to the risk premia to 20%.
January 25, 2024
Middle East
mm bbl
bcf
Middle East, bordering the Arabian Sea, Gulf of Aden, and Red Sea, between Oman and Saudi Arabia.
PSC/PSA
Production Sharing Contract ("PSC") based fiscal regime. The Yemen Oil Company ("YOC") has the right to take a carried equity interest of between 5% and 25% upon a commercial discovery. Production rates determine royalty and production-sharing splits. Cost recovery ceilings are variable, and a range of bonuses, rentals, and fees are payable.
Yemen’s daunting economic challenges are made worse by ongoing political turmoil. Civil conflict has devastated the economy and destroyed critical infrastructure. Even before the current conflict, mismanagement and corruption had resulted in chronic poverty, underdevelopment, and minimal access to such basic services as electricity, water, and health care in much of the country.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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