Yemen production may be closer than we think.

IMO, there is another option available to PSA to start up production without getting ALL of the approvals it needs... and PSA will certainly be looking at it .

As far as I am aware , the 2 most important approvals PSA is lacking are for the cost recovery, and access to the Petro Masila block 14 pipeline.... Cost recovery is probably the most important, because without cost recovery, PSA will not be able to claim back over $50 million of previous costs within the Trans Global and Occidental Yemen subsidiaries. This will make BLOCK 1 production much less profitable for PSA, even with the recent increase price of oil.

All the other approvals could possibly be bypassed, because OMV is now producing and trucking oil to the same point PSA are planning to do. So what if PSA sell their oil to OMV minus a margin, minus trucking costs.... the oil would effectively be OMV oil going into the pipeline . At the AGM, PSA stated that OMV want to increase their production by trucking more oil.

It could be that it would take just as long to get cost recovery as all the other approvals, so this option be be irrelevant, but the OMV restart has certainly opened to door to PSA following suit more readily IMO.

Waddya think.

Cheers

Dan