Dated: April 25th 2011.
Revealed a document showing the frightening reality of the deteriorating economic situation in Yemen. The document was addressed to The Prime Minister Ali Mujawar in the caretaker government with a set of proposals to get out of this urgent collapse of the economy of Yemen. It also reveals the dollar currency that remains in Yemen after major looting and remittances abroad as well as bribery to the regimes loyalties.
His Excellency the Prime Minister Dr. Ali Mujawar,
Subject: To re-run oil pipeline, Mareb and Hodeidah.
Referring to the above subject and the frequent claim of Refineries Company in Aden to provide liquidity in foreign currency, the amount varies between 400-500 Million Dollars monthly to buy oil products and to cover the needs of the local market due to the prevention of the crude oil from Mareb to Hodaidah; therefore, refineries stopped oil crude production which caused a huge loss up to today which reached 229 Million Dollars for oil crude and 84 Million Dollars for household gas.
Based on the joint meeting minutes held on April 24th 2011 between Ministry of Oil and Minerals, Finance and the Central Bank is concluded in the following points:
1- The necessity of oil pipeline maintenance in both Mareb and Hodeidah within two days to allow the supplication of Aden’s pipeline with crude oil.
2- Reduce the amount of diesel and gasoline to the local markets by 50% taking in account the consequences that might cause the ration crisis which may lead to long queues to be able to afford it.
3- The importance of going to the Kingdom of Saudi Arabia to grant quantities of oil derivatives and gas for local markets during the suspension period.
Note that in case of failure to take actions that are reffered to:
Clearance of the Central Bank of Yemen reserves of the foreign currency in less than a year; is one of the most important indicators of the seriousness of the situation in the event of continued deadlock in the oil sector from Mareb because of the bombing of the pipeline. That requires to import major quantities of petroleum products that are demanded for the domesticc market at an estimated cost of 1,630 Million Dollars for three months.
It is likely to stop the production of liquefied gas that is suppilied to the power plant, stop pumping natural gas to Balhaf and stop Mareb refinery as a result of the stop of sector facilities of 189.
This will lead to very heavy fines on the country for the foregin companies that purchased liquefied natural gas when it stopped pumping gas, according to purchase agreements, in addition to other political and economical effects including the declaration of state of force by those companies.
We would like to point out that if there are no fast recovery methods to what has been mentioned above; the Ministry of Finance and Oil and the Central Bank are not responsible for what will happen.
Accept our sincere regards,
Minister of Oil and Minerals,
Ameer Salem Al-Aydarous
Minister of Finance,
Noman Taher Al-Sohaibi
*Image with the greeting for the presidency.