Calvalley predicts 30,000 b/d at Yemen Block 9

Vol 10, PW 16 (30 Nov 06) News in Brief

Reliance has clearly found a winner with Block 9 in Yemen, where it holds 25%.

Edmund Shimoon, CEO of Canada-based Calvalley Petroleum and Block 9 operator with 50%, tells PETROWATCH that by end-2007 the field will start producing 30,000 b/d. Today, Block 9 produces only 7500 b/d.

We can produce 30,000 b/d already, says Shimoon. But we are constrained by lack of facilities.

This should change in mid 2007 when Calvalley begins laying a 250-km, 16-inch pipeline that can evacuate larger volumes of crude. Tenders are out and first material for the pipeline is expected to arrive by Q1 next year.

Pipeline construction will take four months. Next month (December) Calvalley will increase production at Block 9 to the 10,000 b/d limit set by authorities, who dont like crude-carrying trucks clogging up the countrys roads.

Every day we are bringing in additional wells, adds Shimoon. But we have been given a trucking limit of 10,000 b/d.

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