Yemen pipeline revised
Posted: 20 August 2007
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Negotiations are on between Calvalley, a third party operator and the Ministry of Oil and Minerals of the Republic of Yemen to build and finance the revised 145 kilometers of pipeline from Block 9 to a point within a block operated by the third party operator.
Discussions were held recently on the plans to reduce the 245 kilometer, 16 inch pipeline from Block 9 to a point within Block 18 for connection to an existing major export line from Block 18 to the Ras Issa terminal at the Red Sea .
The reduced distance in respect of Calvalley's portion of the pipeline will significantly reduce Calvalley's construction cost commitments.
It has been previously reported that Calvalley would be responsible for building and financing the entire pipeline and it was anticipated that other third parties along the pipeline right of way would connect to Calvalley's pipeline system.
In turn, third party operators will be responsible for financing the balance of the approximately 100 kilometers of pipeline required to connect to Block 18.
Calvalley, the third party operator and the Ministry of Oil and Minerals are committed to continuing to coordinate their efforts for the construction of the proposed pipelines. The company will continue to use best efforts in order to expedite the construction of the pipeline and is committed to working diligently with all parties toward the finalisation of all issues relating to the project. |
