Summary of Licences: Yemen
Field
Licence
Type
Key Licence Terms
Licence Expiry
Fiscal Regime
Funding
Arrangements
Block 5
PSC with
YIOMR
(1)
•
Development leases for 20-year
•
Minimum work obligations required under exploration phase:
•
minimum expenditure of between $10m and $20m
•
acquisition, processing and interpretation of seismic data
•
drilling and evaluation of between 1 and 3 exploration wells
•
1 Dec 2016
and with a
right to
request 5-
year
extension
•
Cost oil entitlement cap: 27.5%
•
No gas entitlement
•
Royalty for average 12,500 bopd or less gross
production: 5% of gross production
•
Profit oil percentage for average 35,500 bopd or
less gross production: 25%
•
Expenditure tax on all expenditures: 3%
Arab Bank Loan
OCF
Equity
Block 43
PSC with
YIOMR
(1)
•
Development leases for 20-year term over the oil field discovered in the
PSC area in 2005 (5% of the Block)
•
April 2025,
with
extension
option until
April 2030
•
Cost oil entitlement cap: 50%
•
No gas entitlement
•
Royalty for average 12,500 bopd or less gross
production : 3% of gross production
•
Profit oil percentage for average 25,000 bopd or
less gross production: 30%
•
Exploration tax on all exploration expenditures:
3%
Arab Bank Loan
OCF
Equity
Block 49
PSC with
YIOMR
(1)
•
The Group was part of a consortium awarded the blocks via international
auction in Dec 2006
•
Minimum work obligations required under exploration phase:
•
Collection of 3D seismic data
•
Cost oil entitlement cap: 50%
•
No gas entitlement
•
Royalty for average 12,500 bopd or less gross
production: 2% of gross production
•
Profit oil percentage for average 15,000 bopd or
less gross production: 35%
•
Exploration tax on all exploration expenditures:
3%
Arab Bank Loan
OCF
Equity
Block 82
PSC with
YIOMR
(1)
•
Minimum work obligations required under exploration phase:
•
Minimum expenditure of between $10m and $20m
•
Acquisition, processing and interpretation of seismic data
•
Drilling and evaluation of between 1 and 3 exploration wells
•
31 Dec 2014
•
Cost oil entitlement cap: 30%
•
Cost gas entitlement cap: 30%
•
Oil royalty for average 25,000 bopd or less gross
production : 12% of gross production
•
Gas royalty for average 25,000 bopd or less gross
production : 12.5% of gross production
•
Profit oil percentage for average 25,000 bopd or
less gross production: 20%
•
Exploration tax on all exploration expenditures:
3%
Arab Bank Loan
OCF
Equity
Source: Kuwait Energy.
(1) YIOMR = Yemen Ministry of Oil and Mineral Resources.
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