Yemen is seeking bids from international oil companies to participate in the bidding process to explore and develop five oil blocks across the country.
The country is inviting the tenders to explore oil blocks 6, 15, 84, 85 and 102 situated in the al-Saba’ateen basin, the Say’un-Masila basin, and the basin of Mukalla-Sayhoot, with an aim to increase the country’s oil output and productivity.
Yemen Oil and Minerals Minister Ahmed Dares was quoted by Reuters as saying that the call for tenders will increase the exploration operations in the country and also attract foreign investment.
"Increasing oil production and reserves through expanding exploration blocks… is a top priority for Yemen at the moment," Dares added.
Yemen produces oil from two regions: the Marib-Jawf basin in the north, and Say’un-Masila basin in the south; and has estimated that almost 84% of the total production is achieved from the Masila basin.
The country, with a long history of conflict and struggle, is working towards strengthening its weak economy and is trying to bring stability by attracting foreign investment.
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By GlobalDataLast year, the total throughput of oil was less than 200,000 barrels per day due to the political instability in the country.
The US Energy Information Administration reported that Yemen has proven oil reserves of approximately 3 billion barrels as of 1 January 2012.
The country’s earnings through oil and gas export have decreased over the years after the pipelines exporting the fuel were repeatedly attacked by certain anti-social groups.