First Coordination Meeting

MOM’s & Operating Oil, Gas, Minerals and Subcontracting Companies

Oil Minister: our concerns are to train locals, Yemenize posts and make foreign companies establish open their headquarters  in Yemen

AUG. 7, 2006─ The Ministry of Oil and Minerals (MOM) held the First Coordination Meeting of Production, Exploration, and Subcontracting Oil, Gas and Minerals Companies.  The meeting was attended by HE Mr. Khaled Mahfouth Behah and representatives of production, exploration, and subcontracting oil, gas and minerals companies. 

HE Mr. Khaled Behah delivered a very meaningful speech in which he confirmed that coordination between the government and oil companies operating in Yemen constitutes the cornerstone enabling such companies to achieve the targets set down by the government. He further called on the companies to stick to that as this would enable them to achieve common interests and expectations. Not only that, all of that would create outstanding leaps in Yemenization and inspire Yemeni graduates. Encouraging Yemenization programs, he stated, “The percentage of Yemenis in Nexen has reached 78%.”

Stressing on the significance of such meeting, Mr. Behah stated the meeting represents a message to the oil ministry to improve its performance and to the international companies to meet the high expectations of the government especially in the forthcoming period which would experience a lot of challenges and oil, gas and minerals activities.

Listing pieces of advice to the operating companies, he summarized by saying that companies ought to: Yemenize quality jobs; move their head offices to Yemen; protect the environment; train Yemeni employees; recruit Yemeni labor force; avoid the traditional employing procedures; circumvent oil brokers who as he said distort Yemen’s image and that of oil companies in Yemen.

Emphasizing on that oil companies ought to establish their offices in Yemen, he said,” Unfortunately, in the past the oil ministry neglected this issue. Therefore, some companies established their offices in their homelands, a matter which is now problematic to us.”

He confirmed that Yemen’s request to return all oil companies offices to its land is clear, strict and irreversible. Another issue is that such offices should have Yemeni cadre so that Yemenis could be able to acquire experience and mental capacities in the oil sector at the regional or international levels. 

After the Minister gave his speech, the door was open for all invitees to comment, complain or give any inputs. The first to speak was Mr. Alester John Moony, Canadian Nexen’s president and Gm, who approved the points, raised by the minister, in particular Yemenization. He stated that his company has offered scholarships to Yemeni students to Canada. He affirmed the importance of having such meetings and open discussions to share challenges and problems facing oil companies.

 Following Mr. Moony’s speech, the minister praised the role of Nexen in advancing Yemeni oil exploration and production activities. He said, “It is important to mention that Nexen is a good example in the oil market in Yemen. It initiated the scholarship program which we are all proud of. In fact, there are 80 students studying in Cagry and Saint Universities. By mentioning that, hopefully other companies may follow suit.

He added, “Actually, Canadian Nexen has a lot of influence. [It does not] use the traditional brokers. [It is] very smart that it uses very professional brokers and has professional people in Yemen, who would be its hand and the breach between Canada and Yemen. Total and Yemen LNG should think of having similar scholarship programs.”

In addition, Mr. Faisel Othman, deputy GM of Yemen LNG, gave a brief run down of his company’s efforts to recruit Yemeni cadre.

He said that the company has its own plans and programs. These plans and programs aim at facilitating its work with the government, guaranteeing the safety and health of its employees and protecting the surrounding environment of its activities, and offering the locals with service projects. Concerning Yemenization, he indicated that the company has 134 trainees having trainings in the company’s centers. The percentage of Yemenis amounts to 35% and the company intends to Yemenize all post except those occupied by the partners. 

Then the microphone was given to Donald Lipinski, Occidental GM, who stressed on the importance of such consultation, negotiation and coordination between companies and the government. He emphasized that all parties should work on solving their problems; customs is a good example. He added that all parties involved ought behave as partners and be professional in business. 

André Grange, Oil Search representative, commented on his company’s work in an offshore block. Operating offshore as well as the lack of boats in Yemen are some of the crucial and significant challenges faced by the company. Yet the company is going to drill two exploration oil wells, each of which would cost over $15 million. Enhancing the importance of cooperation between Yemeni relevant bodies and Oil Search, he said, “ It is important that when I am communicating those activities to the oil ministry and PEPA, [both bodies] understand that it is taking us a long time to get where we are and it is taking significant cost.” Besides expressing his pleasure to work with his Yemeni friends, he emphasized that there are many challenges which could be overcome by cooperating and adopting the initiatives made the oil minister as well.

 Petronas’ General Manager, Ameel Rozan, commented on Yemen’s shortage of rigs because rigs contractors need the permission of the oil ministry and other concerned bodies. To tackle this problem, he suggested that respective authorities and rigs contractors should coordinate to import more rigs. To do that, the former should facilitate this matter by giving the latter the required permission and facilitate pertinent procedures.

Regarding Yemenization, he said, “We have sponsored five Yemeni students to study in Petronas Technology University and another two employees to the company’s headquarter in Kuala Lumpur.”

At end of the meeting, Mr. Behah stated that every one is free to dispatch Yemeni employees on scholarships to any country as long as “they are going to add value to their country and to themselves. And the ministry has no objection to that.”

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