Zenith Netherlands Buys Oil Production Facilities in Yemen
A major international energy company has bought oil production facilities in Yemen from another international company, according to the Associated Press.
Zenith Netherlands, a subsidiary of Zenith Energy Ltd. announced that it has agreed to acquire the energy assets of Vienna-based OMV in Yemen in a deal worth more than $21.6 million.
The deal has not yet been approved by pro-coalition Yemeni and Austrian authorities. The Pro-coalition government has not provided any comment.
“The acquisition of OMV Yemen represents a very significant milestone for Zenith Energy. The existing production from the asset and, more importantly, the near-term future oil and natural gas production indicated by the size of the reserves, position Zenith on an extremely exciting organic growth trajectory,” said Andrea Cattaneo, Chief Executive of Zenith.
According to the deal announced by Zenith Netherlands, the largest of OMV’s assets was a stake in the Al-Uqlah oil field in central Yemen, which is controlled by pro-coalition government.
As of January 2022, the field was producing an average of 6,000 barrels per day due to a lack of drilling activity, the announcement said. This volume was down from about 15,000 barrels per day before the war in Yemen began.
In June, the company announced that it would sell its assets in the country as part of its plans to downgrade its oil activities after Sana’a forces launched operation in early October preventing the looting of Yemeni crude oil through the ports of Nashmiya and Qena in Shabwa and Al-Dabba in Hadramout, located on the Arabian Sea, until the salaries of employees interrupted since the coalition moved the Central Bank to Aden and transferred oil revenues to the Saudi National Bank are paid.
Abdul Ghani Jaghman, a geologist and consultant in natural resource development, accused the pro-coalition government of selling eight barrels of crude oil for one dollar, while 90% of the Yemeni people are below the poverty line.
Jaghman stated that the reserves sold in the deal to sell oil sectors are estimated at 160 million barrels of crude oil, and half a trillion cubic feet of gas at a price of $ 20 million in installments, the first installment was paid $ four million, stressing that the pro-coalition Minister of Oil is behind the deal to sell the sovereign wealth of Yemen.
He pointed out that the Dutch company also bought sectors “7 and 3” in Shabwa in addition to the sector S2.
The Austrian company “OMV” announced in a statement at the end of last December the dismissal of the services of its employees.