Yemen
A strong presence
With the acquisition of the international portfolio of Preussag Energie GmbH in 2003, OMV gained a strong presence in Yemen and currently holds two large, highly prolific exploration licenses. These are namely Block 3 and 70 and one OMV operated production license in Block S2.
After successful exploration activities, a commercial oil discovery was declared in 2005 with the first barrels of oil shipped at Ras Isa’a terminal in December 2006.
The second quarter of 2015 saw a major deterioration of security with the outbreak of the war. Moreover, blockades at seaports in Yemen prevented crude oil exports. OMV Yemen was forced to shut in all production activities in April 2015 and declared force majeure on all its blocks and ongoing contracts.
However, the Habban field location was not directly affected by the deteriorating security environment. Therefore, comprehensive technical, commercial and security arrangements were put in place to test production resumption at Block S2, which was successful.
After investigating all feasible options and export routes, production restarted in April 2018, lifting the first crude oil by the end of July 2018. All crude oil produced that year was, and continues to be, sold in the international market.
The oil is being trucked to facilities at Block 4 (80km driving distance), which is operated by Yemen Company for Investment in Oil & Minerals (YICOM).
The oil is pumped via a 204 km pipeline to YICOM’s Al Nushaima
Terminal,where it is sold to the international market.
Annual production 2021: 3.0 kboe/d (net to OMV)
The OMV Strategy 2030 focuses on the following topics:
- Net-zero emissions by 2050
- Growth projects in natural gas, as an energy transition fuel
- Fossil production will be reduced gradually until 2030
- Low carbon business will be built, with significant investments in geothermal energy and CCS
Community relations and development
OMV Yemen is committed to supporting local communities surrounding its operational area of Block S2 in the Erma District, Shabwa Governorate. Since production resumed in 2018, OMV Yemen’s support has included:
- Providing essential emergency medical equipment, supplies, and personal protective equipment to ensure that local hospitals are better prepared to respond mainly to the COVID-19-pandemic.
- Funding an ongoing large scale electrification project in the Shabwa governorate with the procurement of materials, thus supporting local community’s access to affordable, reliable and sustainable energy for all. This supports the United Nations’ Sustainable Development Goals (#7).
- Funding the AlMafood and Bakaila water reservoirs projects to improve water supplies to the nearby communities with three additional water tanks, benefiting more than 3,700 people across 28 villages.
- Funding a vocational education program in midwifery offered by the Health Institute in the Ataq-Shabwa Governorate. This has been carried out in partnership with local stakeholders and in line with the health plan for the provision and support of obstetrics and gynecology basic services in the district.
- Supporting the education of locals by providing scholarships to young Yemeni nationals to pursue undergraduate and postgraduate qualifications, specifically in medical disciplines in national and international universities. Currently, 22 students are being supported in their respective studies from this program.
