As any other sector in Yemen, the oil sector began to take its status especially in the first months following the 1962 September Revolution. A company, formerly called Fuel Company, used to buy and sell petroleum derivatives but in small quantities according to the demand of the Yemeni market at the time. The company’s services continued to expand and grow tangibly and qualitatively until it reached its current level.

In the mid of the 1970s, the Minerals and Oil Affairs Authority was founded to carry out its assigned duties as one of the affiliates of the Ministry of Economy at the time.  

Both the company and authority were the sole representatives of the oil sector until 1978 when the Republican Decree No. 7 was issued. The Decree states that “The Yemeni Oil Affairs and Minerals Corporation (YOMINCO) shall be established.” The Corporation actually constituted the first infrastructure for this significant sector. It used to encompass the following affiliates:

-       Yemeni Fuel Company later named the Oil Company;

-       Minerals Wealth Authority later named the Geological Survey Authority

-       Salt and Gypsum Exploration and Marketing Company

Following that, the National Company for Constructional and Industrial Materials was founded.

By the increase of oil activities and passage of time, oil potentials in Yemen became a reality and was confirmed so by the discovery of oil in Block Alf (A) and Block 18 Alsabetian in 1984.

This discovery represented the new era for Yemen. The government started to restructure its corporations, and redesign and redraft its policies so as to meet its new role in the oil industry.  The Higher Minerals Council was formed in 1985 and the Yemeni Oil Affairs and Minerals Corporation (YOMINCO) was promoted to the status of a ministry, being the Ministry of Oil and Minerals. This was in September of the same year to carry out its duties and responsibilities.

Further more, to meet its great volume of assignments, the restructuring of the Ministry was a must. Therefore, independent and specialized bodies were established to cover all oil, mineral and gas fields; each of which was to carry its role in a systematic fashion and under the supervision of the Ministry of Oil and Minerals (MOM).