DNO suspends production in Yemen

All expat workers were moved to Dubai due to deteriorating security conditions

Escalating violence in Yemen has caused major oil companies operating in the country to suspend production and pull out staff.
Escalating violence in Yemen has caused major oil companies operating in the country to suspend production and pull out staff.

DNO, the Norwegian oil and gas operator, said it suspended production in Yemen and moved all of its expat workers to Dubai, due to deteriorating security conditions in the country.

DNO, 42.8% owned by RAK Petroleum, operates Block 32 and Block 43 situated east of the capital Sana'a now in control of Houthi rebels.

Prior to suspending production, the Norwegian company had combined output of about 1,950 barrels of oil per day (bopd), the company said in a statement on its website.

It added that it continues to monitor the situation closely and has initiated plans to secure its facilities and remove non-essential staff.

Yemen has been plunged into destructive civil war causing the security situation to take a turn for the worse.

On Sunday, Reuters quoted sources saying that exports of liquefied natural gas (LNG) were running as normal despite the shutdown of major seaports.

But France's Total, the largest operator in Yemen, said on Monday it reduced operations at its Block 10 and maintained gas production only for local power generation and to supply nearby areas.

According to the U.S. Energy Information Administration "declining oil production and frequent attacks on Yemen's energy infrastructure have offset positive developments in the country's natural gas sector since 2009".

The EIA maintains that Yemen's difficult security environment complicates the exploration, production, and transport of energy resources in the country, and could undermine the country's emerging liquefied natural gas (LNG) export sector.

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