CAPITAL: Sanaa

MONETARY UNIT: Rial

REFINING CAPACITY: 120,000 b/d

OIL PRODUCTION: 370,000 b/d

OIL RESERVES: 4 billion bbl

GAS RESERVES: 16.9 tcf

In January 1998 the Yemeni Ministry of Petroleum & Minerals issued a new land concession map showing revised boundaries for blocks in the northeastern part of the country and in the southern central part of the Hadhramaut region.

The changes followed the start of a drive by the ministry in 1997 to promote activity in Yemen`s upstream sector after exploration fell away over the presious 2 years mainly because of poor results.

The ministry enhanced the viability of some small discoveries made by foreign firms by improving the terms in its production sharing contracts. During 1996-98 the ministry concluded 12 production agreements with foreign companies.

In other activity, Kappa Energy Co. Inc., Calgary, abandoned drilling of the Al Hijera-2 exploration well on the Al Mabar block after electric logs showed the target reservoir was water-bearing. Kappa moved its rig 20 km to the west to drill South Al Mabar-1 new pool wildcat.

Canadian Occidental Petroleum Ltd. acquired a 47.5% interest in Block 50 and a 43.75% share in Block 51 from field operator Kerr-McGee Oil & Gas Corp.

During 1998 the partners planned to acquire 220 miles of 2D seismic data and to drill two exploration wells on Block 51 to evaluate prospects in the Saar basin, said to have similar geology to the producing Masila block. They also planned a 470 mile 2D seismic survey on the virgin Block 50, which was hoped to contain a northern extension of the Saar basin, to identify prospective drilling locations.

Meanwhile, Canada`s Calvalley Petroleum Inc. announced a plan to drill four appraisal wells on Block 9 after an independent evaluation suggested the block was highly prospective.