- DUBAI: Yemen is sharply increasing its imports of oil products, an official at Yemen’s oil ministry said, as the state grapples to solve a fuel crisis after its biggest refinery was forced to shut.
“We have some contracts with various companies...such as Vitol, International Petroleum Group (IPG),” the official said.
Output of 110,000 barrels-per-day (bpd) Yemeni Light Marib crude remains shut after a blast on its main pipeline in March has halted the crude flow, disrupting the operations of several companies such as Austria’s OMV and the closure of the 130,000 barrels per day Aden refinery.
“These are agreements between the Aden refinery and these companies on a monthly or three month basis,” the official said, adding that the monthly import levels were around 280,000 tons for diesel and 120,000 tons for gasoline.
This reflected a threefold increase for diesel imports and a near fourfold rise for gasoline purchases, a Gulf-based trader said.
Three Yemeni government sources said on Monday that there has not been any imports of crude oil so far. The oil ministry official, who also oversees the operations of Aden refinery, said “it was easier” to import products directly.
“We have tenders and other deals with companies, namely traders” he said.
“We increase the amount,” he added.
An increasing number of tankers, carrying oil products were discharging at the port of Aden, shipping sources said, adding that some were coming from Saudi Arabia.
“We’re seeing a lot of tankers for refined products coming on a cash basis,” the source said.
Some traders in the Gulf have been wary of selling into Yemen, citing several vessels offshore which can’t discharge due to credit problems.
“Importing looks to be the only solution, at least for now. They can’t refine the Masila crude, it’s too heavy for the Aden refinery,” the shipping source added.
Around 70,000 bpd of Yemen’s Masila crude comes from the fields of Canadian company Nexen, which has resumed production on May 11, after a brief halt due to strike action.
The company operates and exports through Ash Shihr oil export terminal, located on the south east of capital Sanaa.
Deteriorating security conditions as a result of months of protests had affected the distribution of products and made it difficult to repair the damaged pipeline, oil and minerals minister Amir Al-Aidarour told the Yemeni parliament two weeks ago.

