Saudi Oil Derivatives Distributed in Eastern Yemen, Second Instalment to Arrive in Aden

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Nov 29, 2018, 12:59 ET

RIYADH, Saudi Arabia, Nov. 29, 2018 /PRNewswire/ -- The Saudi Development and Reconstruction Program for Yemen (SDRPY) is delivering 18,000 tons of oil derivatives to the eastern Yemeni city of Mukalla today. The fuel is being distributed to 34 power plants in the 5 eastern and central Governorates of Hadhramaut, Shabwa, Al-Jawf, Marib and Al-Mahra. It is part of the first instalment of oil derivatives delivered to Yemen on 29 October 2018 under a Saudi royal decree, issued in August, to grant Yemen USD 60 million-worth of oil derivatives per month. 30 power plants in Abyan, Aden, Lahij, Socotra and Taiz Governorates have received the remaining 69,000 tons from the first monthly instalment.

Yemeni Deputy Prime Minister Salem Ahmed Saeed Al Khanbashi and Saudi Ambassador to Yemen Mohammed bin Saeed Al Jaber, Supervisor of SDRPY, presided over the receipt of the fuel in Mukalla.

Today's delivery in eastern Yemen immediately precedes the second delivery of oil derivatives to Aden port (30 November) for distribution to all 10 governorates. The second instalment includes 65,000 tons of diesel and 32,000 tons of mazut. This brings the total value supplied to Yemen under the royal decree thus far to USD 120 million.

The oil derivatives are estimated to benefit some 8.5 million people. They are intended to address electricity shortages in Yemeni institutions, including schools and hospitals, by ensuring the uninterrupted operation of power stations around the country. It is hoped that this will substantially alleviate the suffering caused by the Iran-backed Houthi militias, and support the economic recovery and living standards of the Yemeni people.

Mukalla is the capital and largest city in the Hadhramaut Governorate, where security remains an issue for trade and transport in rural districts. The Aden Refinery Company is distributing the fuel under the supervision of an accredited committee that includes representatives from: the oil company, SDRPY, the national electricity company, the central system of auditing and accountability, the chamber of commerce, and civic organizations. The committee will visit the electrical power stations designated to receive the oil derivatives, check the equipment, and monitor the volume of oil derivatives supplied by SDRPY.

"This fuel will bring electricity to remote areas still underserved due to the Houthi insurgency in the west and northwest," said Deputy Premier Al Khanbashi. "As former governor of Hadhramaut, I know first-hand the challenges of securing energy supplies for remote areas, and I thank the Kingdom of Saudi Arabia for its generosity and support on behalf of all Yemenis in these difficult times."

"Our program aims to help all Yemenis throughout the country, and thanks to enhanced security we can now bring fuel to this region for hospitals, schools and other vital institutions to operate at full capacity, twenty-four hours a day," said Amb. Al Jaber. "As I have stressed before, we are not waiting for the Iran-backed Houthi militias to agree to a political solution," the Saudi envoy added. "The Kingdom can help Yemen immediately, and by working with local organizations and institutions, we can ensure the fuel reaches designated end-users under conditions of full transparency and efficiency."

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SOURCE Kingdom of Saudi Arabia