OREANDA-NEWS. RnR Market Research Offers Report by Research on Yemen Oil and Gas Report Q3 2016.

BMI View: Yemen's oil and gas industry remains at a standstill as virtually all oil and gas companies and facilities have suspended their operations due to the ongoing civil war in the country. With no resolution of the conflict in sight, we expect above-ground risks to continue weighing on near-term production and challenge investment prospects over the longer term.

Latest Updates and Key Forecasts

Between 2016 and 2025 oil reserves are set to shrink by 13% and reach 2.61mn bbl, while the gas reserves are expected to record a smaller contraction of 2.3% and stand at 468bcm Due to continuing civil war in the country, we do not expect oil and gas exploration activities to be renewed in the near term.

- Yemen's crude oil and liquids production shrunk by 60% to around 50,000b/d in 2015 and we forecast that this figure will contract further to 12,500b/d in 2016. We expect the country to sustain similarly low oil output until the security situation improves.

Gas production in Yemen collapsed in 2015 due to the closure of the major production facility - Yemen LNG. The estimated gas output of just 1.0bcm in 2015 (down from 10.4bcm in 2014) was exclusively directed to satisfy domestic needs. With no end to the country's civil conflict in sight, we do not expect notable improvements to gas production over the coming decade.

Yemen's refined products output is forecast at 35,060b/d in 2016. We expect the production to pick up from 2018 onward, but our forecasts face a significant downside risk due to continuing civil war and frequent attacks on energy infrastructure.