New Oil Commercial Declaration In Al-Uqlah (Block S2).

07/01/2006

New Oil Commercial Declaration  In Al-Uqlah (Block S2).

Petroleum Exploration and Production Authority has announced within the first week of the year 2006 a new commercial declaration in block S2 (Al-Uqlah).  According to Eng. Nabil Saleh Al-Qawsi Chairman of (PEPA) that the continual success in the oil sector comes due to the excellent support and follows of H.E. President Ali Abdullah Saleh, in enhancing the investment role in oil

sector.

It is worth mentioning that the Al-Uqlah Block (S2) locates in Al-Uqah area, Armah district, Shabwah Governorate operates by OMV an Austrian company. The preliminary reservoir studies indicates that the proven Recoverable oil reserve  ringing between 50 to 173 Million barrel and possible to be more after completing the developing and exploration activities in the development area. The average early production will start approximately with 5000 BOPD through the second half of this year 2006, and will keep the gradual increasing to reach 10000 BOPD in the next year 2007, and then will increase to 32,000 BOPD during 2009, and definitely more after completing the oil production facilities, development and exploration activities in the Development Area.

Al-Gawsi said, Before three months ago PEPA announced about this oil discovery, And as results of the integrated continual efforts from PEPA technical staff and operator (OMV), the declaration came as peer H.E the Minister of Oil and Mineral Dr, Rasheed S. Ba-Raba'a approval on Jan, 7th, 2006.

It is the second oil commercial declaration in Shabwa Governorate after the first one in block S1 (Damis). It will provide preliminary information on the existence of oil in basement rocks. Al-Gawsi said that this discovery confirms that basement rocks definitely become a main focus for exploration not only in Shabwa but also in Marib governorate and other regions of the country, which will encourage the international oil companies to invest in Yemen among the third international bid round.

PEPA still receiving the applications of many international oil companies that intend to have the concession for exploring oil and gas in the 14 promotional blocks that is going to be announce and declared currently through the PEPA website and other several international and Arabic press.

Eng. Nabil Al Gawsi the President of PEPA, Chairman of the negotiation committee declared the number of the enlisted competitive Companies that intend to participate in this BID ROUND that exceeded more than 25 international oil companies till January 8th, 2006. he Confirmed that this number will be increased especially after Al-Uqlah oil commercial declaration from the basement rocks.