Australian independent Petsec has been chomping at the bit to bring output from Yemen’s Block S-1 back online ever since it finalized the acquisition of a 100% stake at the license in 2016. The firm has repeatedly pointed the finger at Yemeni authorities for holding up the resumption of production from the block, which it says has “in excess of 54mn barrels of recoverable oil and 550bn ft³ of gas.” Following a farm-out it is now confident that production is imminent.
The Yemeni government had since 2019 been calling on Petsec to bring in a partner to co-invest in Block S-1 development and in October, Petsec finalized this. The firm’s 2020 annual report says that Petsec sold its wholly-owned subsidiary, Yemen (Block S-1) Inc, which has a 75% stake in the field to Yung Holdings “for $2mn and a life of license carry of all future costs (operating and development) of the remaining 25% working interest in Block S-1, held by the Company’s wholly owned subsidiary West Yemen Oil (Block S-1 Inc).” (CONTINUED - 756 WORDS)
