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|Yemen Pays $23 Million in Compensations to US Hunt Company|
Moneer Al-Omari (YEMEN
Article Date: August 25, 2008
Sources at Yemeni Oil Ministry announced that the Paris-based International Chamber of Commerce (ICC) ruled for canceling any claim of any new legal agreement between Hunt Oil Company and Yemeni government.
The ICC ordered dropping the compensation claim of Hunt amounting to $3.3 billion. It also ordered canceling the counter-claims by the Yemeni government.
A reliable source at the Ministry of Oil and Minerals stated last Friday that the ruling required the Yemeni government to pay $22.9 million as well as 5 percent in interests, hinting the government settled these amounts immediately after issuing the judgment.
The source added that Yemen's stance was characterized by understanding and wisdom, despite the defaming campaigns by Hunt Company that led ultimately to ending important differences at the international level.
Yemeni parliament rejected in 2005 the extension period offered by the Yemeni government to Hunt Company which had been producing oil from bloc 18 in Mareb-Al-Jawf basin.
When parliament rejected to extend the agreement, the state-owned company (Safer), undertook the operations in the bloc which produces about 70,000 bpd.
Hunt also discovered gas in the same bloc with huge quantities and the estimated reserves are 18.2 trillion cubic feet; however, the signed agreements with Yemen did enable the company to invest in it.
Now, gas is produced and exported by alliance of international companies led by French Total Company, partnered by American, Korean, and Yemeni companies.The first shipment of gas is due to be exported at the start of 2009 with an annual exporting capacity of 6.7 million metric tons and for 20 years.