Armies of Liberation

NY

Almost ten years passed since Abdul-Salam Ali Ba-Dikn has been put in a prison in Aden.
The inhumane treatment and torture by the prison officials made him decides to pursue the case against offenders to be presented to justice that he said “does not exist in Yemen”, but said he would seek international justice.
Before November 1997, Ba-Diken, the Yemeni businessman in the Gulf, was arrested for unidentified crime, but because a visit to his uncle in prison. His money and other properties have been confiscated and he has been detained for two years.
Before releasing him in January 1998, Ba-Diken said he was subjected to different forms of torture and inhumanly abused in an isolated prison for seven months. “They also threatened me to offend my family, I do not know why”, said Ba-Diken.
In the first letter to the General Prosecutor, the National Organization for Defending Rights and Freedoms (NODRF) asked for immediate intervention to release Ba-Diken and investigate torture and inhuman treatment against Ba-Diken for more than months.
Head of NODRF, the lawyer of Mohammad Naji Alaw, said in his letter that “Ba-Diken was moved to a dark isolated detention in Al-Sulban prison in Aden for seven months and 18 days where he was tortured”, demanding questioning with all involved in torturing Ba-Dikn and bringing them to justice.
The court that found no evidence against Ba-Dikn acquitted him, but it did not talk about rehabilitation it deserves. He said he would raise his case to the international justice to get punishment against those who tortured him and to restore his money and properties that were confiscated on no legal base.
Despite notes have been raised to president Saleh on his case, Ba-Dikn did not receive any response.
When Ba-Dikn filed a suit against prison officials accusing them of offending him for seven months, the court asked the court doctor to check him. The doctor said Ba-Dikn suffers from pains at the right of his back.
The medical examiner also said that he found signs of torture on the body of Ba-Dikn.
However, the court has not reached a verdict against offenders but acquitted Ba-Dikn on a warrant without checking justifications of putting him in jail.
Officials who expressed sympathy with Ba-Dikn only asked for brining him back his car and money, ignoring torture and illegal detention which more important for Ba-Dikn and justice advocates alike.

News Yemen:

Member of the Parliament and head of the Parliamentarians Anti-Corruption Organization, Sakhr Ahmad al-Wajeeh, said that many MPs” are not trained enough on questioning the ministers over issues so they lose useful information and facts.
Al-Wajeeh said there are 26 questions over corruption that the government had not answer although the Parliament summoned the ministers for questioning nine months ago.
Al-Wajeeh said in a symposium on corruption held on Wednesday in Al-Afif Culture House in Sana’a, which the official media did not cover as usual, that “there is corruption inside the Parliament where, he said, transparency disappeared and obligatory laws are not respected.
‘There corruption files in the Parliament which some bodies do not want to be discussed,” said al-Wajeeh, but he did not name those bodies.
One of the attendants suggested that the word “corruption” should be changed into destruction because, he said, the word “corruption id not annoying anymore.
Attendants also suggested forming a committee to make dialogue with corrupts as the committee of dialogue with militants.

Thats a good idea.

Did they cancell the project because the partners weren’t cooperating with the regimes intentions or because the partners violated the agreements? Is this anti-corruption or corruption?

Yemen Times:

SANA’A, July 30 — The Yemeni government decided at the start of this week to terminate the agreement signed 5 years ago between Saudi and Emirate investors regarding the Hadramout Refinery project.

According to Al-Shoura.Net that published the news on July 29, the Ministry of Oil (MO) according to sources there intends to terminate all its obligations regarding Hadramout Refinery Company (HRC), as the company violated the agreements and contracts.

The same sources affirmed that this project was cancelled as the company, belonging to Saudi and Emirate businessmen of Hadrami origins, refused the partnerships imposed by the authority.

Two years ago, a delegation including a number of founding members of HRC visited the site at which the project will be set up. Official media coverage was obviously attendant at the time, but it soon started to fade. Local sources mentioned that the company earlier accepted a bid submitted by a specialized American-Korean company to launch the construction phase.

According to 26 September.Net, belonging to Ministry of Defense, the Ministry of Oil is now transparently studying a number of new international bids to construct the refinery in Hadramout.

The sources affirmed that these government measures aim to combat the monopoly of some companies and consider the country’s interest assuring that the “MO will not accept bids of companies practicing monopoly in any Yemeni area and further, those companies which construct false projects.”

YO

Joel Fort, General Manager of Yemen Liquefied Natural Gas (LNG) has denied the accusation of some members of Parliament that the company has sold the gas at a price lower than the international standard. In a press conference held last Wednesday at Taj Sheba Hotel in Sana’a, Fort said that such a claim was “a legend,” pointing out that 70 percent of potential production was already sold to the US market in accordance with international prices and 30 per cent was sold to the Korean market at a determined (but unspecified) price.

Korean ownership rises from 16% to 20%

Yemen’s ownership decreases from 23% to 21.72% (If total revenues for Yemen were estimated to be USD 10-20 billion, one percent is worth 100,000 million to 200 million dollars. )

Total owns three percent less than they reported in 2005.

Total’s press release in 2005 lists the owners of Yemen LNG. There is a difference in the ownership percentages currently being reported on YLNG ’s website.

YLNG owners——————percent owned 2005———–percent owned 2006 ————after Kongas transaction

Fwance’s Total————————————————43 %————————39.62 (also a customer)

State owned Yemen Gas————————————-23 %———————–16.73

Gen Authority for Social Security and Pensions———0%————————-5.00%

US Texas-based Hunt Oil————————————-18 %————————17.22

South Korea’s oil refiner SK Corp—————————10 %————————9.55

South Korean’s Hyundai————————————— 6 %.———————–5.88——————————–3.00

South Korea’s Kongas——————————————-0%————————-6.00 (also a customer)——-8.88

The Koreans trade among themselves: South Korea’s state-run gas monopoly Kogas is increasing its stake in Yemen LNG to 8.88% by buying additional shares from fellow South Korean giant Hyundai. The company decided to acquire half (2.9%) of Hyundai Corp?s stake in YLNG.

It looks like Yemen’s state owned share decreased about 1.25% from about 23% to 21.72%, possibly sold to Kongas. No body knows.

YLNG with primary ownership by Total has sold its twenty year production in three contracts. One contract is to Suez for 2.5 million tons of LNG per year. The second sales contract is to Total Gas and Power Ltd. for two million tons a year. Both Suez’s and Total’s shipment will begin in 2009 and last for 20 years. Shipments under both of these contracts are destined for sale in the US market. The third contract went to South Korea’s Kongas, destined for consumption in South Korea, and is for 1.3 to 2 million tons. The volume of the three contracts is 5.8 to 6.5 million tons a year.

YLNG’s estimated production is 6.7 million tons a year, leaving the amount allocated for domestic consumption in Yemen at between 200,000 to 900,000 tons a year.

Is that the way it works? Nobody knows. What price do the Yemeni people get to buy their own gas at? Hopefully the price is between 3-4.00 like Korea, and not at current market prices in 2008.

Further Total’s website notes 100% of natural gas in the US is sold on the spot market. So YLNG sold a third of Yemen’s production on a long term contract to Total Gas. Total Gas will presumably sell it on the spot market in the US at substantially higher prices. (Spot price today for delivery in Jan 2008 is USD 11.06; the sale price to Kongas was between UDS 3-4.00 The price at which Total Gas purchased two million tons a year is unknown. )

Total’s Gas Market Outlook predicts a strong market on page 5 here which is entitled “Sharp Increase in Gas Prices.”

It pretty much matches the 2008 market price of $11.00 that my friend looked up for me. Yet Yemen LNG (with 43% ownership by France’s Total) sold neraly all natural gas production in 3 twenty year contracts. One contract was under $4.00. One contract was to Total Gas and the sale price is unknown.

Total notes “Average spot gas prices multiplied by 3 since 2000.”

They call Yemen LNG “a giant project” and it seems its very important to them in securing their supply “Long term growth sustained by giant gas projects” (page eight)

Total is the second largest international producer in the Middle East. They have participation in nearly 40% of worldwide LNG capacity. I wonder how Yemen’s contract stracks up against Totals contracts with other suppliers.

Yemen accounts for about a third of Total’s current development projects (page 12). They are expecting 12% a year growth. Yemen will account for 40% of Total’s Middle East gas production. (page 14)

On page 18 Total notes the gas prices are highly leveraged to hydrocarbon prices, which they call “strong value creation over the long term,” Yet in Yemen LNG’s sale to Kongas, there is the unusual feature where the sale price is only leveraged by 30% to oil prices.

Here’s another report by Total, page 19. “LNG growing by 12% per year through 2010″ I think they mean demand, but price cant be far behind.

In this report< Total analyzes the intability and capacity of the oil markets and notes the "giant gas projects" as a main part of their future strategy for growth.

MITI:

In 2005, Kogas struck even more competitive deals with its suppliers, MLNG III Tiga, Yemen (YLNG) and Sakhalin II. Although these are long term contracts — all 20 years with an option for a further five — they appear to be extremely favourable, particularly as they were struck at a time when the price of crude oil was rising strongly.

In all three contracts the price of the fuel is less than 30% indexed to the price of crude oil.

In two of the contracts, Kogas is promised 70% winter delivery.

Also in two of the contracts is a price cap and the opportunity to review the price after seven years.

Kogas to own 8.9% of Yemen LNG:

Korea Gas Corp. – Additional dividend revenue expected from 2008. – KITC Full Report – PDF – 2006 年 7 月 19 日

We maintain BUY with the six-month price target of W45,000. The company decided to acquire half (2.9%) of Hyundai Corp?s stake in YLNG (Yemen LNG project). If the acquisition takes place, KOGAS? stake in YLNG would expand to 8.9%. We expect KOGAS to earn dividend revenue from 2008 with the beginning of YLNG?s LNG production of 6.7mn tons per annum in 2008. We believe that KOGAS? acquisition of Hyundai Corp?s YLNG stake shows one of the variety of roles that it can play in overseas resource development. As the government is trying to make overseas resource development a national agenda, we believe the government?s support for KOGAS will expand going forward. In return, the company will widen its role based on strong brand value and bargaining power.

France’s Total owns 43% of Yemen LNG.
Yemen LNG sold one third of Yemen’s gas for 20 years to Total’s subsidary, Total Gas.
The sale price from all indications was significantly under market price.

In additon at all the links in the prior post, an interveiw in the Yemen Times with a MP on the oil and minerals committee from June 2005 indicates this as well.

Member of Parliament Mr. Ali Ashal is one of the active members involved in the oil and minerals committee of the parliament. In an interesting interview, Mohammed bin Salam of the Yemen Times interviewed Mr. Asshal and filled in the following lines…

Q: Parliament has warned against unfairness towards Yemen in recent LNG deals with some companies. How does this unfairness exist? Is this the beginning of a new disagreement between Parliament and the government?

A: Unfairness comes from many sides. We were first surprised by the hushing up condition of this deal. Parliament was kept away as it had been the trend of the ministry. Recently, the government reached an agreement with Total to extend its contract. This agreement was never sent to Parliament although it is concerned directly. The extension of this contract should have been agreed by Parliament in advance or at least sent to Parliament to debate.

What disturbed us is that the Korean Company said that Korea saved 40-45% by signing this contract which means that the company shall save $14 billion in the next 20 years. Isn’t this a lot of unfairness?

The Company also mentioned on its website that the price of Yemeni gas is slightly more than 3 dollars/unit, while it is more than 47 in the market. We don’t know really the reason why our government is throwing away this asset in this way.

We also feel that Total which was given a share of Yemeni gas in return for the infrastructure and finding markets did not adhere to the agreement. Total did not find us the best possible markets and prices as it is supposed to.

It is said also that Total has bought also a share of our gas. How can it be a buyer and marketer at the same time? Oil and Development Committee in Parliament has written to the Oil Ministry warning of the consequences of reaching any decisions regarding the gas project without Parliament being acquainted with the details.

Q: Do you think the government shall continue its moves to finalize these deals or shall yield to the demands of the Parliament?

A: As far as we know this deal is only a provisional deal. It isn’t yet final. So it seems we can make right what we can. Today we have a meeting with the ministerial side about this subject. We feel that the government’s orientations don’t take the interests of Yemen in consideration.

A recent report by OPEC says that our region is moving towards utilizing gas as an alternative clean source energy. Yemen shouldn’t sell its reserves of gas before securing its own needs first for at least 50 years. Only after that may Yemen sell gas.

Q: Why doesn’t our government contract directly with gas buyers instead of going through marketers who grab 2/3 of Yemeni gas?

A: Government argues that exporting LNG is very expensive. It cannot provide the necessary infrastructure which need billions of dollars to build. As a result Yemen now owns 27% of its gas while foreigners own more than 70% only for providing the infrastructure and markets.

As Yemen didn’t benefit from this gas during the last decade, it is supposed not to extend these contracts which disregard our national interests and are the subject of much slackening and bias. It is said that Total doesn’t want to export Yemeni gas in the time being because that might not serve its interests now or its partners’. Total doesn’t care whether Yemen benefits or loses now.

Q: As there are trespasses in the gas project, what is Parliament going to do?

A: The current Parliament has proved that it has enough will that had made the common man in Yemen regain his trust in Parliament. You might have heard that this Parliament had succeeded in some previous oil issues in which it had a loud voice. The Government had to yield to Parliament on several cases. The sale of sector (53) was nullified and so was the extension of Yemen Hunt Oil Company’s contract. We now hope that we shall study the gas issue till we come to the facts. If it becomes clear that selling gas on these terms doesn’t serve our interests, I think Parliament shall have a serious position as it did before in several cases.

Q: Who are behind these deals? Who benefits from them? Certainly these are individuals or powerful centers who stand to benefit from such contra like the one with Total, though they are aware it doesn’t serve the interests of Yemen!

A: As Arabs say “The results shows the cause.” When you see the national interests being squandered, you can say that somebody has pursued his personal interests and didn’t care for the national interests.

To our sorrow we are suffering an irrational condition in managing our oil and gas sector. We had drawn the attention to this point many times. Between 30-40% of our resources are being squandered. It is clear that there is collusion with oil companies. The governmental side administers the whole affair as kind of brokerage which becomes the base in initiating some economic projects disregarding the national interests. Those behind these deals look first for their personal interests. Because they know they aren’t staying for long in their current posts. They adopt the culture that says that the smart one is that who avails himself of the opportunity as long as it exists.

At the time, the issue was so contentious, that Sheik al-Ahmar terminated a session of Parliament due to a hot dispute over the gas report:

The report of the Oil and Minerals Committee revealed that revenues Yemen is about to get by signing the gas sale contract will be disappointing. The government did not fulfill a previous recommendation stipulating that the Oil and Minerals Committee should present a report on the project every sex months. The report showed the prices included in the gas sale agreement are 50% less than the international gas prices and this means Yemeni will suffer a heavy loss.

OK so is Fort calling the Parliamentary report incorrect as well as the Korean Commerce Ministry statements and all the gas industry analysists that noted the price was substantially under the market?

from the YO, 2005:

The Korean government has celebrated the deal as a cheap way to meet its demand for LNG. The deal with Yemen is estimated to be 35-40% cheaper than Korea’s previous long-term LNG deals and could save the East Asian country more than $13 billion over the 20 years, said Korean government officials.

“The reduction in import prices reflects the change in international conditions from a sellers’ to a buyers’ market, with gas producers competing with each other to win deals,” Lee Won-Gul, deputy minister for energy and resources policy, told the Yonhap news agency.

But Peter de Wit, president of Shell Gas and Power Asia Pacific, which also won a share of the giant Kogas bid, said the tender reflects an overall increase in global demand for LNG.

Well prices have continued to rise alright.

Update #3 below, including apparently widespread charges Total uses slave labor in Burma.

Update #2 to update #1 and all the ruminations at the end of the post:

This is a quote from one of the US’s premier futures traders:

“NatGas for delivery in January 2008 is currently at 11.060.
The market is inverted for that year, so remember, that’s a bullish signal.

Let’s say you sold natgas for January 2008 delivery at $11.06.
Between now and then, the price went down to $5.00
You could buy it back for $5.00 and make $6.00 without ever having to take delivery of the gas.

Stupid to sell at $4 now.”

Well if you are sellling it to yourself, its kind of smart. It looks like thats what Total is doing.

The price to the Koreans is under 4$ for delivery starting in 2008. (ex-ship not FOB) OK its a large amount but 2/3 lower than world market price? No wonder the Korean Trade Minister was bragging how cheap it was. What is this Fort guy talking about? “Rumors”? The Koreans said the price was well under their existing contracts. Are they liars? Not only is the LNG sale price lower than the current market price which is around 7$, its much lower than the futures price, which is 11$.

And have we all noticed that Total is a major shareholder in YLNG as well as a major customer? Total has a 43 % stake in Yemen LNG, followed by state-owned Yemen Gas owning 23 %, followed by Texas-based Hunt Oil with 18 %, then South Korea’s largest oil refiner SK Corp. having 10 % and lastly Hyundai owning 6 %. Total is selling themselves a third of Yemen’s gas at fantastic prices it seems.

from Total’s website: Yemen LNG has signed three long-term (20 year) sale and purchase agreements for the plant’s output—one with Suez LNG Trading for 2.5 million metric tons a year, one with Kogas for 2 million metric tons a year and one with Total Gas & Power Ltd. for 2 million metric tons a year.

So starting in 2009, Total Gas and Power is going to sell Yemen’s gas in the US they say, but at what price? Double?

This is the orginal post:

News Yemen

The general director of the Yemen Liquefied Natural Gas (YLNG) Joel Fort denied reports that the plant sold an amount of natural gas, enough to cover the coming 20 years, with 50 percent less price than the international price. He described such rumors as “superstitions”.

In a press conference on Wednesday, Fort said the project is expected to generate the largest single revenue, 10 to 20 billion, for the country during the period of 20-25 years. Fort said the plant has a guaranteed production capacity of 6.7 million metric tons per year and that the plant sold 70 % of potential production for US market and 30% was sold for Korea.

He said that the company allocated one trillion metric tons for local markets as the company contributes in building pipeline from Marib to Mabar region, 220 km.

The workforce in the YLNG, in Balhaf and the head office in Sana’a, is to reach 600 employees.

The cost of the LNG project is $ 3.7 billion, Fort said, confirming that 23%
of the project has been achieved.
He said that the plant would have two-train liquefying units for exporting LNG, expandable to three trains in the future. One train will be ready in 2008 and the second will be achieved in 2009, he said.
Currently, the company is constructing a liquefaction plant in Balhaf region on the coast of Shabwa, 200 km south-west of Mukalla, and 320 km, 38 inch pipeline from the processing centers in Marib to the liquefaction plant at Balhaf, he said.
He said that the project will put Yemen on the world’s investment map as a result of which foreign investors may find opportunity to enter Yemeni markets.
He said that a survey over all potential port sites and pipeline routes in Yemen identified Balhaf to be the most suitable location for a balance of technical reason as well as maintaining a minimal impact on local communities and the environment.
Regarding the social impacts of the project, Fort said the YLNG had identified
some inevitable impacts on communities, such as the situation lived by fishermen who lost their fishing harbor and safe haven due to the dedication of Balhaf for the purposes of the LNG plant.
“To address this, Yemen LNG established a committee for the compensation
of fishermen, which, in agreement with fishermen associations from the
affected regions, reached concrete compensations measures to be undertaken,”
he said.
He said the measures included installing a 750-meter breakwater in Jela’ah
to substitute for the safe haven which can accommodate up to 250 fishing
boats which is much more than the number of boats that used to benefit
from the natural safe haven in Balhaf.
The measures also included the construction of access roads both in Jela’ah
and in Bir Ali and technical mechanisms and computers for better monitoring
of auction markets at both Jela’ah and Bir Ali area- a regional fish market,
20 km from Balhaf, he said.
Fort said the current shareholders are Yemen Gas Company, the General Authority for Social Security and Pensions (GASSP), Total, Hunt, Kogas, SK and Hyundai .

from the YO last year, price caps and low sale prices:

The South Korean Ministry of Commerce, Industry and Energy (MOCIE) told the Korea Times on Monday that four local companies, including Korea Gas Corp. (KOGAS), had recently sealed 20-year liquid natural gas (LNG) import contracts with three foreign natural gas suppliers, including Yemen, at rates 40 percent lower than current prices. Under the agreements, Korea will import a combined 5 million metric tons of LNG annually from Yemen LNG, Malaysia LNG and Sakhalin Energy Investment starting in 2008.

Yemen LNG will provide 2 million tons of natural gas to Korea annually, with Malaysia LNG and Sakhalin Energy supplying 1.5 million tons of LNG each. The paper quoted a ministry spokesman as saying that the contract is expected to result in energy cost savings totaling 13 trillion won for the 20-year period, adding that the import price will be 38 percent cheaper on average than that of existing contracts.

The ministry said that the long-term supply arrangements included a pricing cap that limits the foreign LNG suppliers from hiking supply prices above a certain level despite sharp surges in international LNG prices. LNG prices tend to move in tandem with international crude oil prices. The ministry spokesman was quoted as saying: “Under the deal, LNG cannot be priced over a certain level letting Korea ship in the fossil fuel at a relatively stable price regardless of the fluctuations in the international crude oil and LNG oil markets.”

Same YO article: One trillion metric tons allocated, five trillion cubic feet recommended by Parliament for local consumption. How many cubic feet in a metric ton?

Parliament also authorized the government to conclude and endorse final agreements after the government, represented by the prime minister, bowed to recommendations from Parliament’s Oil and Development Committee to the effect that 5.2 trillion cubic feet of LNG should be put aside for the local market to generate about 3000 megawatts over 20 years.

How did the frequently touted 15000 new jobs become 600? Significant economic and social gains are expected, including funds for social development in the areas through which the pipeline will pass, sources added. The project, with projected profits of $17 billion for Yemen, will create more than 15 thousand new jobs.

And:

The project will bring economic and social benefits to the residents of pipelines areas, Al-Aoj assured. “Funds will be provided for development in the areas through which the pipelines pass, and fifteen thousand technicians and workers will work on the project,” he said…..The Parliamentarian Oil Committee report also recommended that maximum sale prices of LNG to Cogas be set at US$20 according to agreements which stipulated that gas prices increase along with the increase in oil prices. The report said that the amounts to be sold according to the tentative contracts surpassed the quantities set by Parliament, and which the Cabinet accepted, when Parliament approved the modified agreement stipulating that 5.3 million tons be sold annually.

For the biggest investment in Yemen, it seems rather shrouded in mystery. Considering the history of corruption in the oil industry, I wonder what safeguards are in place to prevent the same thing happening with the gas? I’ll have to check their website. How hard can this be to figure out- whats the contractual sale price, what’s the market price, are there price caps, how many jobs- 600 or 15000, is it one trillion metric tons more than five trillion cubic feet for local consumption, what do the fishermen and villagers say about compensation they’ve received and what does an independent enviornmentalist say about the impact on the fishing ecosystem of destroying the corral reef and building a breakwater instead.

Thats interesting:

• Archaeology / Culture
- In October 2005 YLNG commissioned an archaeological survey carried out by a joint venture between the Deutsches Archaologisches Institut (DAI) and the Centre Français d’Archéologie et de Sciences Sociales de Sana’a (CEFAS), both with a long history of archaeological studies and excavations in Yemen.
- This survey discovered a number of sites of archaeological interest, most particularly the Darbas Bronze age settlement with irrigation channels near the northern entrance to Wadi Jirdan which may be part of the pipeline route. If affected by the project, the most significant sites will be professionally surveyed or excavated at YLNG’s expense. Alternatively, the pipeline may be re-routed to ensure their complete preservation for future visitors and scholars
- YLNG plans to work with a Yemeni university / one of the Yemen-based Cultural Institutes in researching the history of the Balhaf area and the pipeline route, which is not far from the ancient incense trade routes dating back to the 8th century BC. In addition a number of historical sites in the Balhaf area will be protected / preserved. A pre-Islamic cemetery has already been fenced off, and consolidation / reconstruction of one of the two Balhaf towers (dating from around 1930) is planned.

Update #1: well that wasn’t hard to find

New Supply Contracts Reduce Korea’s Import Costs

Abstract: Prices under the new supply deals with sellers in Russia, Malaysia and Yemen are lower than existing contracts, averaging just under $4.00/MMBtu ex-ship when crude oil is at $40/Bbl.
This article appeared in August 2005 issue of LNG in World Markets under the heading – Commerce.

Canadian prices average Sales: 6-16USD

From one o’ the blog friends: The spot month (cash market) is at 6.710. August is at 7.120
Quotes from here

She adds this note: “Near months are generally priced less than the far months because the far months are supposed to priced at the “cash price” plus what is called “carry fees” that include storage, insurance, etc. When the near month is priced higher than the far months, the market is inverted. An inverted market is a bullish indicator, meaning the prices are expected to continue to rise. They could sell futures contracts for August delivery at over $6 They could sell futures contracts for December delivery at over $10. Prior to 2000, NatGas was below $4 Between 2000 and 2002, it varied. It hasn’t been below $4 since 2002. We also have to take into consideration delivery charges which will effect the price out of Yemen and the reliability of the government with regard to its fulfilling its contacts and obligations.”

The delivery starts in 2008. What does that guy from YLNG mean its a “superstition” that Korea bought the gas under current market price? Under 4$ is lower than current prices. The Koreans were bragging about how much money they were going to save and how it was cheaper than their current long term contracts.

Total has quite an interesting presentation here which I think shows their projection for sale prices from 2010 forward around $10.00.

The Korean deal: The pricing of the contracts ranges from 197-218 usd per ton, far lower than the average 322 usd under current supply deals. “The new contracts are about 35-40 pct cheaper than the past and current ones, saving the nation about 1.34 bln in 20 years,” (The commerce, industry and energy ministry) added. It also said that the contracts include several provisions against spot price fluctuations and guarantee supply for the cold seasons.

So the Koreans commerce ministry is saying the price is 35-40% lower (and $218 does seem lower than $322 most days), and Fort saying that’s not true?

What a lack of transparency already.

Update #3 These are my lingering questions:

Why aren’t the sale prices and other details of the contracts known? They’re published. Is it some sort of secret? Isn’t it a right of the Yemeni public to know about their natural resources. Why did Fort deny outright that the Koreans bought gas below market prices?

What are the sale prices and is there a cap on the pricing? Is it market price or is it below?

Is the price Total sold the gas to itself the same as the price to the Koreans? (lower than market)

With Total selling to itself, what mechanisms are in place to prevent collusion? (especially in light of Iraq’s oil for food scandal and Total’s alleged use of forced labor, propping up a brutal dictatorship, and charges of enviornmental devastation in developing a gas field. ) Wouldn’t that require more transparency to dispell any questions about what Total is doing in Yemen?

Of the 6.7 million metric tons estimated production a year, how much is allocated for the local market?

Is the amount allocated for the local market less than the amount Parliament recommended?

Whats going on with the historical sites along the path of the pipeline?

Parliament at the time was objecting to the sale (because it was below market price and the amount allocated to the local market was low), who pressured them and where is Total’s sense of corporate responsibiilty?

How much credibility do their statements about the enviornmental impact have? Their intended community support?

So if Yemen should make about 17 billion from the entire deal then Total is making 34 billion and Total Gas will make many billion more, is that it? Or is the total project revenue expected to be 17 billion in which case Yemen’s share will be 4 billion over 20 years or 200 million per year?

Related LDC’s

From the Yemen Times:

A study conducted by the Civic Democratic Initiatives Support Foundation (CDISF), concluding its program regarding the Water Disputes Administration, declared last Thursday, July 20, that 80% of the disputes leading to fighting and revenge attacks are caused by disputes over water.

Conducted over 18 months and supported by the UK Embassy in Sana’a, the study was made within a program in three stages. The first stage focused on specifying the problems relating to water scarcity and the suggested solutions. The second stage focused on training and adopting mechanisms by which suggested solutions could be performed. The final stage of the program included issuing a solutions directory.

The study aims to identify the ways by which disputes arising between individuals, tribes and institutions can be solved. Furthermore, the study focused on water issues which took place in Al-Jawf and Amran governorates, showing the means by which those disputes were settled.

Additionally, the study indicated that the elements which shape the most important reasons for the outbreak of water disputes include failures to recognize different view points, lack of resources and conflicts of interests. Finally, the study listed water disputes under three different categories concerning well drilling, irrigation channels and the construction of new water projects.

from the Yemen Observer

A recent study in Yemen found that disputes over water resources account for 80% of all acts of revenge in the country. The study located nearly 80,000 artesian wells in Yemen, 15,000 of which are located in the Sana’a basin region. The study found that 7% of the total water resources are consumed in houses and industry, whilst the remaining 93% are used for agriculture.

Potable water is available in 58% of urban areas. The coverage of the sanitation service is nearly 32% of these areas. The coverage of potable water in rural areas is 37.5%. The study added that the extravagant consumption of water in areas, like the Sana’a basin, rates 200% and that the level of underground water is lowering by seven meters each year.

The study from the technical secretary for reform of the water sector in the Ministry of the Environment, Anwar Sahooly, said that because of this huge consumption, the wells that provide water for home use are 800 meters deep. The per capita water is 130 cubic meters per year, according to the study.

“The government is planning to extend drinking water coverage to 90% and sanitation service to 80% by the year 2025 when the population of Yemen is expected to reach 40 million people. It will take a budget of approximately nine billion dollars to achieve the goal by 2020. The Democratic and Civil Trends Support organization said in a separate study that 80% of the disputes that lead to revenge are related to water. “The disputes over water are the first among three sorts of disputes that trigger killings and acts of revenge.

The reason for this is the scarcity of water resources,” the study says. The study was carried out over 18 months with the support of the embassy of the United Kingdom of Britain.

It was carried out in three stages. The disputes are most often over the locations of wells, the share of people in funding the digging of new wells, the direction of streams that irrigate farms or plantations, or the purchase of equipment for pumping water or well maintenance.

And the worst of the water crisis is looming in the near future.

News Yemen

The visiting Commander in Chief of French Naval Forces in Indian Ocean, Hubert de Gaullier de Bordes denied that his visit comes within French-American competition on making domination in the Indian ocean.
“France is known the greatest country in the world and everybody knows that,” said de Bordes in a pres conference on Monday in Sana’a.
NewsYemen asked him about the expected American reaction toward the French offer for Yemen to “attach a suggested Yemeni-Djibouti-French training program for coast guards”.
De Bordes said “if there is a race, it should be with Italy, not with America”, stressing that France and US are working along with other countries of the international alliance in the international waters, Aden Gulf, Arab Sea, Oman Gulf and Indian Ocean.” He described those territories as “the most active in marine moves”.
“We all want to crack down illegal acts like arms smuggling, human trafficking and piracy. All these acts together serve terrorism”, said Bordes.
Bordes confirmed he would inform the US commander of marine forces about what France achieves with Yemen, but confirmed that he “will not await US agreement or disagreement.”
“This is a Yemeni-Djibouti-French concern,” he said.
France is the third power among 105powers that exist in the India ocean and it is the one has agreements with the region countries, especially Djibouti. De Bordes has been interested in Yemen’s marine affairs since he took his mission on in the Indian ocean.

after 14 of the the 15 necessary agree:

Yemen has officially stopped calling for an emergency Arab summit to discuss the bloody developments in Lebanon and Palestine and calls instead for financial support for both countries. The withdrawal of Yemen’s proposal to hold the summit came to avoid “more divisions and schisms,” and for having received no response to the call from the most influential Arab leaders.

14 Arab countries had already agreed to support the summit. “Yemen regrets ending its efforts to hold the urgent summit, and it appreciates and thanks those states which agreed with Yemen’s call,” said Foreign Minister Abu Bakr al-Querbi in a press conference late Sunday. Al-Querbi also said that Yemen understands the circumstance of those Arab countries that did not agree on staging the summit. However, the Minister avoided answering the question of why Yemen ended its call after 14 out 22 Arab countries had announced their approval and intention to attend the special meeting.

“In fear of [creating] more political divisions and schisms among Arab leaders,” Al Querbi said, in an obvious reference to the political division, which occurred at the meeting of the Arab Foreign Ministers in Cairo earlier this month. Al-Querbi denied that the withdrawal came after US pressure, and the talk about a new Middle East. “Yemen will keep supporting peace in the region in accordance with the initiative of the King Abdullah Bin Abdul Aziz in Beirut,” he said.

He renewed his country’s position of support for the Palestinian and Lebanese peoples in confronting the “Israeli atrocities,” and called for an immediate ceasefire. The Minister said that President Ali Abdullah Saleh had ordered giving the equivalent of a day’s wages for the entire Yemeni workforce on behalf of the peoples of Palestine and Lebanon. In addition to that, a bank account was opened for donations from all people willing to support the two countries. Yemen first proposed an emergency summit of the Arab League shortly after Israel began bombarding Lebanon 12 days ago, in response to Hizbollah guerrillas’ capture of two Israeli soldiers.

Israel also stepped up attacks on Gaza after Palestinian militants captured another soldier. A total of 14 Arab governments had backed the idea of the summit. At least 15 governments of the 22-member Arab League must agree before a summit can proceed. Earlier, Egyptian President Hosni Mubarak had said that Arab countries must agree on the main points before the leaders meet. Arab foreign ministers held an emergency meeting in Cairo earlier this month to discuss the violence, and to unanimously call for an immediate ceasefire.

Al-Eman University clerics call them “rejectors” or apostates:

Sheikh Abdul-Majid al-Zindani called the Parliament to hold ” an emergency session” to make a new law allows compulsory recruitment for Yemeni youths to join fighting for peoples dignity in Palestine and Lebanon.”
On contrary, the speeches delivered by Sunni clerics in al-Eman religious university, being run by al-Zindani, condemned supporting a “Rafidha party”, referring to the Lebanese Hezbollah.
But al-Zindani praised, in his speech, the resistance of Hezbollah against the US-supported Israeli attacks, that al-Zindani described as “coward aggressions on a single party that could bravely defeat them”.
Al-Zindani, head of the Shura (consultative) council of the Islamic Islah party, called in his letter for “an Arab-Islamic union, similar to the European Union, to defend Muslim nation”.
He also condemned Arab governments’ silence and “their subjection to the American dominance”.

Parliament’s sessions wrap up early

MPs accused the Parliament Presidency Board of edging out the role of the Monitoring Council and transforming it into words on media without any action.

In a statement to Al-Sahwah Net, MPs, Sultan Al-Atwani and Abdulkarim Shaiban said: “wrapping up the parliament sessions before 12 a.m. and devoting them only to draft laws that cost the entire agenda of Parliament during the current period was preplanned in advance to deter Parliament’s work progress.”

Al-Atwani, who chairs the Nasserite Unionist Organization’s parliamentary bloc, added: “wrapping up the Parliament sessions early implies that the ruling party’s MPs are engaged in other jobs and they attend Parliament only to pass what they like.”

Al-Atwani called for the conducting of early parliamentary elections, as a main step toward the reform process sought by the country and citizens.

“The early conclusion of Parliamentary sessions has been a feature of the past two weeks. The General People’s Congress need not discuss any case related to corruption or violation in the meantime, as the country prepares for presidential and local elections in September,” Shaiban reacted.

He noted the Parliament’s current agenda is full of monitoring reports and questions for the ministers about corruption and violation issues, however, it is hoped that these reports and questions will remain inside drawers.

Deputy Parliament Speaker Yahya Al-Raye’e concluded Saturday’s session at 11:30 a.m., only half an hour after it start, sparking tension among MPs.

Media source in the General People’s Congress mocks of Al-Wasat newspaper’s fabricated questionnaire
الإثنين 24 يوليو-تموز 2006

26 sep.net

Media source in the General People’s Congress has mocked of Al-Wasat newspaper in which it published the results of a questionnaire for the presidential candidates.

The source said Al-Wasat site was no more than a ridiculous and silly that reflect endemic aspirations of newspaper’s staff and those who dictate it. It is falsity aspirations people will disclose it through the ballot box and at the moment of expression of his free will, source added.

The alleged questionnaire and so on is usually administered in closed rooms and special meetings of a well-known qat sitting that does not reflect any way only the false results that are fabricated to achieve partisan goals or cheap expediency and it does not deserve any attention from any quarter, source reported.

Yemen Times:

At a press conference held in Sana’a yesterday, Yemeni Minister of Foreign Affairs Abu Bakr Al-Qirbi announced that Yemen has withdrawn its request to hold an extraordinary emergency Arab summit.

Al-Qirbi expressed his sorrow at withdrawing the request to hold the summit proposed to discuss Israeli attacks on Lebanon and Palestine and other issues related to Darfur and Somalia regions. “In an effort not to cause any conflicts among Arab states, Yemen had to cancel its efforts in calling for the emergency summit. Yemen appreciates those states that responded to its call for the summit,” he noted.

Al-Qirbi clarified that it was decided to withdraw the request because there was no response to Yemen’s call for a summit on the part of other Arab states. Additionally, he denied any foreign pressure behind withdrawing the request. “If there was American or any foreign pressure, we would not have announced our initiative for a summit,” he commented.

According to Al-Qirbi, President Ali Abdullah Saleh has ordered a day’s wage to be subtracted from state employees as donations from Yemen to the peoples in Palestine and Lebanon. Donations will be received at account No. 797 at the Central Bank of Yemen, the Yemeni Bank for Reconstruction and the Cooperative Agricultural Bank. In-kind donations will be received at the Yemeni Economic Cooperation and its branches throughout the country, Al-Qirbi added.

Yemen was the first Arab state to call on other Arab League members to hold an urgent summit July 24 at the Arab League headquarters in Cairo. In mid-July, President Saleh called for holding an emergency summit to discuss escalating aggression against the Lebanese and Palestinians. In this regard, Saleh sent letters to Arab leaders, stating Yemen’s vision to urgently hold a summit.

Yemen has made diplomatic efforts in calling on other Arab states to hold the summit. Analysts thought such efforts would succeed in holding a summit, especially after 14 Arab states agreed to hold it, with one state remaining to agree, so that they could attain a quorum.

Yemen has taken a firm stance in condemning Israeli attacks on Lebanon and Palestine. In his speech, President Saleh welcomed the struggle of Lebanese and Palestinian peoples in front of the Israeli war machine. Al-Qirbi further affirmed that Yemen will stick to its stance and stand by Palestinian and Lebanese peoples until they overcome their crisis.

And Lawyers for jihad

A socialist split-off and the clone of the opposition coalition, the NCO

YO:

The Shura-Parliament panel announced in Sana’a on Monday that they have recommended the candidacies of President Ali Abdullah Saleh, the candidate of the ruling General People’s Congress, Faysal bin Shamlan, the candidate of the Joint Meeting Parties (JMP), Yaseen Saeed Abduh, the candidate of the National Council of Opposition, Ahmed al-Majeedi, a socialist independent candidate, and Fatehi al-Azab, an Islahi independent candidate.

These candidates were recommended by the joint panel from the two legislative chambers as eligible candidates for the September presidential elections.

Saleh won 237 votes, bin Shamlan 51 votes, al-Majeedi 33 votes, Yaseen Saeed Abdu 28 votes and al-Azab 22 votes.
None of the three female candidates were recommended for candidacy. Rashida al-Qaili received 3 votes and Thikra Ahmed Ali received 2. It was widely expected that at least one female candidate would be recommended. Independent candidate, Abdullah al-Sayqal received one vote. A further 28 candidates did not manage to get any one in the two legislative chambers to support their candidacy.

387 out of the total 411 lawmakers from the combined parliament and Shura council voted in the session dedicated to recommending the presidential candidates. There were 46 potential candidates up for consideration. The recommendations were decided by secret ballot that began at 9:00 am on Monday, after the Supreme Court had ruled on the appeals of five candidacy applicants whose applications had been rejected.

The court rejected the appeal from applicant Abdurrahman al-Beidhani who didn’t meet the conditions of eligibility. Other candidates had withdrawn from consideration to leave the field free for President Saleh whom they said they trusted as a competent candidate.
The head of the parliamentary bloc of the ruling GPC, Sultan al-Barakani mentioned a few hours before the recommendation session that the GPC bloc would recommend two other candidates besides President Saleh, namely al-Majeedi and Yassen Abduh Saeed.

The spokesman of the JMP Mohammed Qahtan had mentioned that his bloc would only recommend their candidate bin Shamlan. Five days ago, Yemen Observer quoted observers expecting the recommendation of all the candidates who were recommended today.
Furthermore, the parliament agreed to give each of the five candidates 25 million YR to fund their campaigns, as stipulated in the law.

More: The JMP has 67 seats in both legislative chambers, yet its official candidate, Bin Shamlan, received only 51 votes, thus raising a question about the JMP’s seriousness to back their candidate. Furthermore, according to Al-Motamar.net, Yasser Al-Awadi, Vice Chairman of the GPC bloc in the House of Representatives, said before the vote on Monday, “The GPC has decided to give Bin Shamlan some votes, for fear of the JMP not voting for him.”

SANA’A, July 23(Saba)- Informed sources said that an envoy from the Iranian president Mahmud Ahmadi Nejad would arrive here on Monday. The official website 26sept.net said that the Iranian envoy would convey a letter from the Iranian President to President Ali Abdullah Saleh on coordinating attitudes and standpoint of Yemen and Iran toward the developments in Palestine and Lebanon and other regional issues. They added that the letter would also deal with the bilateral relations between the two brotherly countries and the means of developing them.

SANA’A, July 22 ( Saba)- President Ali Abdullah Saleh received on Friday evening a telephone call from Iranian President Mahmud Ahmadinejad, in which they discussed situations development in the region in light of Israeli attacks on the Lebanese and Palestinian peoples .

The Iranian President confirmed his country’s support for the Palestinian and Lebanese peoples in particular and for all Arab nation in generalencounter the Israeli aggressions. He emphasized importance of strengthening Arab and Islamic solidarity to confront all challenges.

President Saleh reaffirmed his call for Arab and Islamic countries to exert their efforts to convince Security Council to restrain Israeli aggressionsand to adopt the Arab and Islamic initiatives to settle peace in the region.

DAMASCUS July 20 (Saba) -The Yemeni ambassador to Damascus Salah Ali Ahmad al-Ansi met here on Thursday Syrian deputy foreign minister Faisal al-Maqdad discussed the latest developments in the region. They reviewed the joint viewpoints on activating the Arab common cooperation to face the Israeli aggression against Palestine and Lebanon. They also discussed topics related to the bilateral relations between the two countries.

Tadhamun Bank announces record profits

With an increase of more than 90 percent compared to 2005, the first six months of 2006 have yielded a YR 7.28 billion profit, while bank deposits have only increased 30 percent compared to 2005. Tadhamun Bank follows Islamic banking methodology and is affiliated with Yemen’s Hayel Saeed Group.