COMTC OFFERS 3.60 MLN BBL FOR MASILA IN TENDER

SANA’A, May 07 (Saba)- Yemen's Crude Oil Marketing and Technical Committee (COMTC) would close its sell tender for Masila for July-loading on Friday.

COMTC offered a combined of 3.60 million bbl for Masila in the tender. COMTC opted to roll over a 1.0 million bbl cargo, which was originally offered as June-loading, to July-loading, thus, COMTC would sell Masila as a combined volume.

With first oil production at Masila started in July 1993, there are more than 25 oilfields in this block and further discoveries are expected. So far, the block is said to contain about 1.5 billion barrels of oil reserves in place.

As for the market outlook for July-loading Masila, "the July market may rebound slightly from the previous month," said a trader.

The trader said that the Brent/Dubai EFS shrank from the same period the previous month, which could help lift the values for July Masila.

The official selling price (OSP) for June Masila was set at a discount of 20cts/bbl to Dated Brent. However, the June Masila market started to slide in the second half of the trading period, as British Arcadia sold one cargo to India's Mangalore Refinery and Petrochemicals (MRPL) at a discount of 80cts/bbl to Dated Brent.

Meanwhile, COMTC would skip a sell tender for Marib Light for July, following the previous month. COMTC would have no spot avails as it would bring Marib Light avails to its 120,000 barrels per day (b/d) Aden refinery in the country.

Yemen is still exploring less than 20 percent of structures, confirming that there is high potential of gas and oil, in efforts to raise the country’s profile as an international upstream investment destination.

The monthly sales of crude oil in Yemen are estimated at 4.5-5 million barrels, and oil revenues form three quarters of the state budget resources.

In 2008, Yemen's total oil production was about 300,000 barrels per day. Production has been declining steadily since reaching a peak of 440,000 barrels per day in 2001.

EIA expects oil output to decrease further to 260,000 barrels per day in 2010.

Oil production in Yemen is dominated by a number of international oil companies. All production currently comes from two main sedimentary basins, Marib/ Shabwa and Say'un/Masila, out of a total of 12 basins believed to hold oil reserves.

Al Masila's Block 19 is ranked as the country's highest producer at approximately 95,000 bbl/d, or 32 percent of the total, according to the Ministry of Oil and Minerals.

There are 12 producing blocks operated by 11 oil companies and there are 31 blocks under exploration by 16 oil companies.

In September 2009, Yemen announced that it plans to explore for oil at 42 locations between 2010 and 2015.