Bloomberg News

Aden Refinery Gets First Marib Crude Since Pipeline Shutdown

July 29, 2012

The Aden refinery in the port city of Aden, in southern Yemen, received its first shipment of Marib crude as the nation’s main oil pipeline started pumping again for the first time in about a year.

A ship carrying 630,000 barrels of crude oil from Marib in central Yemen arrived at the Red Sea port last night, the first delivery from Marib since production there was stopped last year, said Nasser Shaif, a spokesman for Aden Oil Refinery Co. The oil was loaded July 28 at the port of Ras Eisa.

The refinery will start operating by mid-week, Shaif said. The nation’s main oil pipeline, which carries crude oil from Marib to the Ras Eisa port on the Red Sea, was shut down in March 2011, reopened for a few weeks and then closed off again in October after tribesmen pierced it several times.

Crude from Marib had been cut off from refineries and markets because of at least 18 sabotage attacks on the pipeline since March 2011. The production halt resulted in $4 billion in lost revenue, the official Saba news agency reported July 3, citing Hisham Sharaf, the country’s oil and minerals minister.

Yemen repaired the pipeline and this month resumed pumping crude from oil fields in Marib to the Red Sea.

The Marib line connects four oil blocks with a combined output capacity of about 120,000 barrels a day to the export terminal at Ras Eisa, JBC Energy GmbH, a Vienna-based researcher said in a note this month. Ras Eisa is the main terminal where tankers load crude for shipment to Yemen’s biggest oil refinery, in Aden.

Yemen borders Saudi Arabia and Oman at the southern tip of the Arabian Peninsula. The country ranks ninth in the Middle East for output of both oil and natural gas, according to data from BP Plc. (BP/) It produced 264,000 barrels a day of crude in 2010, the data show.

To contact the reporter on this story: Mohammed Hatem in Dubai at mhatem1@bloomberg.net

To contact the editor responsible for this story: Riad Hamade at rhamade@bloomberg.net


Video Game Avenger
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus