Yemen Monitor / Newsroom:
Yemen’s Minister of Oil and Minerals, Saeed Al-Shammasi, has ordered the formation of a supervisory committee and several subcommittees to take over the Al-Oqla oil sector (Block S2) in Shabwah province, eastern Yemen.
This directive follows the announcement by Austrian company OMV of its termination of operations in the sector and the dismissal of around 300 employees without compensation. The decision comes in the wake of a halt in oil exports since October 2022 due to Houthi attacks on export ports.
The move also comes in preparation for transferring the sector to a new operator starting June 1, 2025, after negotiations with OMV failed.
Blue Sky Company has been selected as the new operator for the sector, raising questions about its ability to manage operations under the current conditions.
The Yemeni government aims to ensure the continuity of oil production in Shabwah and to avoid any operational vacuum that could negatively impact the national economy.
