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Millions to be pumped into Yemen's decaying oil infrastructure

Bin Dagher confirmed the steps to revamp oil-fields on Sunday [Getty]

Date of publication: 11 October, 2016

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Yemen's Prime Minister Ahmed bin Daghar has said that the government will renovate oil production plants, which is hoped will stave off a looming financial crisis.

The Yemeni government will inject millions of dollars into its decaying oil fields in Hadramaut to increase production and help save the war-torn country from financial ruin.

Prime Minister Ahmed bin Daghar said $30 million has been set aside for the refurbishment of oil fields and production plants in southeastern Hadramawt province, during a meeting with senior officials in the region's al-Mukalla capital.

"We are seeking to produce 70,000 barrels from the fields," Bin Daghar said.

He added that some of the money from oil revenues would go to paying government salaries.

"There are some soldiers who have not been paid for nine months. We have an obligation to pay them," Bin Daghar said.

He also said that the government ordered billions of Yemeni rials to be printed and go to thousands of public servants who are also waiting to be paid.

Oil fields in the eastern province have remained largely stagnant after government forces abandoned their posts last April when al-Qaeda took control of Mukalla.

Last month, the prime minister left Riyadh to return home to Aden after President Abd Rabbo Mansour Hadi announced the relocation of the country's central bank to the southern port city.

Seven ministers joined the prime minister on his flight back to the southern port city - his first voyage since his predecessor Khaled Bahah fled Aden in October last year after surviving a bombing attack along with ministers.

Hadi's government fled to Saudi Arabia two years ago, after Yemeni rebels overran the capital Sanaa and other major cities including Aden.

Saudi Arabia formed an Arab coalition just six months later to push back rebel forces and reinstate the internationally-recognised government.

Coalition forces - with the support of local resistance groups - managed to regain control of Aden, however, large parts of the country remain under Houthi control.

UN figures suggest more than 10,000 people have died since the Saudi-led coalition began its military bombardment in March 2015, a much higher figure than the 6,000 previously reported.

Attempts to resolve the conflict failed in August when UN-sponsored peace talks in Kuwait ended with no results after two months of dialogue.

 

 

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