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Investment Opportunities
·
There are Significant Prospects.
·
Yemeni Investment Law(No. 29 for 1997) has many privileges and
tempting facilities.
·
Favorable Business Environment.
-
More Freedom in Banking.
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Unified Exchange Rate & Free Transfer of Capitals.
·
Giving Incentives in Risk Areas.
·
Facilitating Exchange of Information Between Working Oil
Companies.
·
Encouraging the Development of Marginal Fields.
·
Political and Economic Stability.
·
Excellent and Favorable Geographic Position .
·
Improved Communication System .
·
Hospitality of the People.
·
The
International Community Respects
Yemen.
·
Yemen is the
Main Entrance to South and East Africa.
·
Yemen has
2,500 km Coast area.
·
The
Country still has Varieties of Investment Opportunities.
·
Political stability, No sanctions in place or threatened.
·
Government keen to attract International investors to the
Hydrocarbon Industry.
·
Yemen’s
capability to attract investors enhanced
·
Interests of parties protected and Investor risk / reward balanced
through improved terms.
·
Proven hydrocarbon province.
·
Potentially prospective acreage available for review and
negotiation.
·
Clear PSA application procedure.
·
PSA
ratified as special law which supercedes other laws (thus
protecting the investor).
·
Business readily conducted and personal safety achieved through
sensible precautions.
·
Acceptable risk profile confirmed by the number of International
Parties doing business with few security incidents.
·
High Qualified Yemeni Multi Disciplinary Petroleum Cadres Assist
the IOC’s in Geosciences and Operations.
·
Yemeni Petroleum Institutions (MOM,PEPA) are Well organized With
More than 30 Years Experience on Petroleum Industry and Adopt an
International Standard Model by Dealing With IOC’s.
·
Year by Year Development of PSA’s Responding the World Oil Market
.
·
Settlement of all Border Conflicts .
·
No
Political Risk .
·
Oil
Infrastructures are Well Improved .
Special Privileges and Exemptions
·
A
contractor is granted exclusive rights to carry out all oil
operations at the area (the specific oil block) and all types of
relevant procedures are simplified. Assistance is also provided in
solving any all issues which may encounter his work with respect
to provisions not integrated in the agreement.
·
Exemptions would include all levies, customs revenues and relevant
tax;
·
Involved parties should agree upon an apt method for paying income
tax, a fixed amount for the income tax of foreign labor-force
during the exploration stage; all of this is to avoid the
governmental procedures which are complicated and various because
of the different and various concerned agencies.
·
Respective parties consent on a convenient mechanism to obtain the
costs and expenses of exploration and development operations in a
short time. This is through considering the agreed upon the
Cost-Oil in such a way that suits both parties.
·
Both
parties agree on certain economic conditions and terms which take
into account the common interest of both parties. The contractor
is to gain rational economic returns being consistent with the
expected reserves to be discovered and the MOM, representing the
government, is to get royalty tax, grants and a share from the
Production Sharing Oil that suits its right of sovereignty of
natural wealth. All of that should have been accepted willingly by
the contractor and incorporated in the agreement’s provisions.
·
Both
parties would agree on a suitable mechanism governing the MOM’s
supervision and monitoring oil operations safety; this is through
two committees. During the exploration stages, a consultation
exploration committee would be formed having an equal number of
representative members for each party. The other one is the common
operation committee to carry out oil operations and to supervise
and monitor development and production activities. Formed after
the announcement of commercial discoveries, it represents both
parties and its operations are financed by the contractor.
Actually, the contents governing these committees have been
improved and amended to suit both parties and to cut down and save
expenses and costs. Another is to achieve skill-development,
technical transference of expertise, overcoming the bureaucratic
procedures experienced by many companies in other countries.
·
In
case of difference between the parties, then arbitration is the
outlet─
provided that both parties agree on the arbitrator. Usually,
arbitration is based on the principles of the World Trade Chamber
in Paris,
which is favored by most oil companies and has become familiar to
the Yemeni party as it constantly responds to international
developments. |
