Production sharing agreements (PSAs) for three of Yemen’s key oil producing blocks are set to expire over the coming 18-24 months. But despite the blocks’ current operators making what they feel is a strong case for renewal, it appears ever more likely that their efforts will ultimately prove futile as Sanaa looks to continue its push toward nationalizing the most prolific of the country’s producing acreage.
Yemen has demonstrated such a tendency over the past 10 years, having transferred operatorship of two of its most high-profile licenses – Blocks 14 and 18 – from Canada’s Nexen and US firm Hunt Oil to state companies. Next in the firing line are French major Total, and independents Kuwait Energy Company (KEC) and UK-based minnow Dove Energy, whose contracts begin to expire from 2015. (CONTINUED - 1057 WORDS)
