Monitoring Report On Oil and Minerals, Yemen

Committee on Oil & Minerals, Public Shadow Authority
Revolution Salvation Front
Monitoring & Evaluative Report on Performance of Oil and Minerals Ministry

Issued by Committee on Oil and Minerals, Public Shadow Authority Revolution Salvation Front (RSF)
Feb 19, 2014
Abstract:
This is a monitoring and evaluative report on the Ministry of Oil and Minerals performance with its affiliating departments, presented on Tuesday Feb 19, 2014 by RSF's assigned committee. The presentation was made during a conference held in Eagle Hotel, Sana'a to declare the committee. It discloses corruption on breaching gas contracts involving SAFER and TOTAL, oil mismanagement, lack of transparency criteria in extractive industries, oil fields monopoly by military generals and influential powers, in addition to highlighting favoritism and looting a great deal of oil revenues. It highlights incorrect policies and violations leaked and the officially or unofficially reported corruption cases as well as setbacks occurred during the ministry's performance.
Spotlight:
Committee on Oil and Minerals is one of the shadow specialized committees established under the Public Shadow Authority of the Salvation Front of Peaceful Revolution (RSF). It works on monitoring corruption in the ministry of oil and minerals MOM and presenting a vision on challenges and solutions pertaining to Oil and Minerals Sectors. It uses legal and judicial mechanisms, media and advocacy campaigns through benefitting from other shadow specialized committees of RSF. The Public Shadow Authority (PSA) is an anti-corruption commission works on monitoring and evaluating the government performance. It was established in January 2013 by the Revolution Salvation Front (RSF), a civil non-governmental pro-change movement established in 2011 to struggle for social change, good governance and national participation towards a modern democratic state .Monitoring and lobbying government, PSA activities focus on the civic engagement of public, activists and professional specialists in the public sectors, and in partnership with the governmental entities. It aims to combating corruption in all government agencies and promoting standards of transparency and integrity. Established under Public Shadow Authority are 7 effective committees tasked with monitoring and observing activities, lobbying and raising awareness of public opinion. These 7 are the committees on finance, justice, the legal affairs, the education, the media, the oil and minerals and on the rights and freedom. They have issued 7 reports since start of NC till 2011 up till now. The other three under est. committees to be declared soon are the committee on public health, the committee on power and energy, and the committee on vocational education. Each of the Shadow Committees is concerned with a government sector, analysis of performance and provide solutions and national strategies, through legal and media advocacy and civil resistance.
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The legal committee receives complaints and wrongdoings on corruption, and human and civil rights violations, especially defending public opinion issues before court. The number of issues that have been filed by the committee are up to 47, most importantly is the question of peaceful Revolution wounded people.
Objective:
Disclosing and briefing public opinion on the Yemen's economy pivotal resource to enhance fighting corruption.
Challenge:
MOM corruption is usually covered in mystery as the perpetrators are guarded by mafia and lobby which formed a wide and ramified web of corruption that managed to loot people's wealth and to confiscate rights of the rising generations.
Conclusions:
Major Shortcomings Throughout MOM's Performance Several violations and failure remains a key outline of MOM, which is a natural reflection of the State's institutional performance absence that is a characteristic of " new state", as follows: 1- Material and financial resources are not properly exploited to serve and develop Oil Sector towards a sustainable and balanced development. 2- It failed to establish national companies, to be specialized in various oil-based activities and able to provide additional benefits for the oil and minerals sector. 3- Deteriorating material and monetary indices of production and exportation with a remarkable increase in imported petroleum derivatives, especially diesel and gas. 4- Widespread corruption and increased conflict among influential monopolizing powers, especially under policy of arbitrarily-made appointments and of sharing and partisan dividing. 5- The ministry has always dissolved in corrupted and influential centers to hinder petrol draft resolution so that these centers can continue their corruption in Oil Sector. 6- Despite promises to make reforms and the great deals of spending on studies, no actual efforts are exerted by all consecutive governments and MOM to develop refining, chemical and petrochemical industries, especially Aden refineries. The major reasons behind are attributed to conflict of interests absence of political will, corruption, and centralization pervading from 1994 until now. Had the Aden refineries cadre had experience and solidarity, they along with the refineries would have been cancelled and sold as scrap. 7- The policy of MOM with its units, whether pertaining to training, job Yemenisation, those policies of promotion and/or replacement, employment, candidacy for it, lack to essentials of good governance, equal citizenship and job filling rules.
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8- All MOM leaderships and influential have marginalized and still, the idea of establishing petroleum research centers with financial and administrative independence, to be fully equipped with infrastructure, in which the highlyqualified expertise and cadres, currently wasted and inappropriately exploited, are employed. 9- The MOM does not encourage or support researches and exploring, especially in petroleum sector in various areas of the country, rather the research focuses on the eastern parts, causing an investing, social, political and economic crisis and a damaged sustainable development. 10- The ministry has no a clear-cut strategic vision on petroleum exploration (for gas, oil and minerals), neither has it a correct strategy to exploit and reserve outputs of petroleum industries that meet the country's needs and rapidly- growing population, to reduce unemployment rate and improve individual standard of living. 11- Gas is often wasted and lost daily in an average of 90 to 130 million cubic feet. The former despotic regime, represented by past governments, parliament and MOM, passed the worst bargain ever in Yemen petroleum industries, namely unduly selling of Yemen gas reserves that could have provided minimum economic betterment had it been appropriately used in the country, an estimated 2 to 3 billion $. Had it been devoted to local consumption and industrial development, the gas wealth sold to liquefied gas project could have made a quantum leap in infrastructure. The direct revenues within 20 to 30 years would have enhanced the public treasury with an averaged 5 dollars for only a million calorie, of not less than 40 to 45 billion dollars as a cost for diesel expected to be imported and/or consumed, to cover the market needs of the material. The financial returns of the internally sold gas might be, in general, of not less than 100 billion over 20 to 30 years, in addition to developing the infrastructure, linking Yemen map from Mareb to Hodeida, Taiz and Aden with a central pipeline network which in turn would have saved great deal of expenses on land and sea-borne oil liquid derivatives that would have been replaced by gas. 12- MOM organizational structure is not suitable and its affiliating Gas & Oil Est lacks institutionalism and controlled by individual hegemony, arbitrarily-taken decisions, absence of transparency, duties and responsibilities are so overlapping and new depts. are tailored according to influential people's special interests and goals. 13- Technicians' training scholarships are a cheap means by the lobby, to blackmailing and to achieving irrelevant objectives such as illegally having travel allowances, resulting to discarding engineers training on latest developments the oil industry . 14- Instead of providing all the country's needs through refining industries, all plans, studies and programs on an optimum exploitation for oil resources have been obstructed by the corrupted lobby. 15- MOM has not adopted effective solutions to reduce smuggling and costs of sea transporting that are offered to companies and influential people. 16- It did not protect oil wealth against waste as it was burnt in veins in favor of oil companies, which results in a costly productions and a damaged milieu and oil reservoirs.
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17- The violations committed against waging, bonuses, and remuneration in MOM and its departments made it easy for employees to illegally change their duty stations with purpose of rabid profiting and special interests instead of enhancing the low production. 18- There is no lasting solutions for oil derivatives shortages, especially diesel. 19- MOM does not encourage, exploring or facilitate or marketing mineral wealth and raw natural resources, including the rare material spread across the country. Though only gold was explored and excavated, no tangible results were concluded, however, Yemen has good reserves of some metal and non-metal raw material for industry and consumption. 20- Despite the great deal of revenues of several oil sectors, MOM did not provide premises for them. 21- There is no transparency and it is difficult to have an easy access to reliable information about oil, gas and minerals. 22- MOM has always been transferring oil via trucks owned by influential people though cost of a transported single barrel is 3 US$, which wastes millions of dollars charged from oil cost. 23- It does not adopt or even consider about solutions in partnership with other concerned State bodies for chronic power supply challenges, neither through gas exploiting nor via reducing importing power-related derivatives, as the strategic sites of Ras Amran and Ras Issa are neglected, and Belhaf (Natural liquefied gas Factory) might have been built in one of these sites instead of its existing place. 24- The employment policy and human resources dept. are absolutely the worst, as favoritism and nepotism are dominant, among others breaches, which is a major reason for the oil dilemma. 25- Due to absence of constantly qualifying cadres and technicians from one hand, and the weak surveillance on annual activities and programs of parent companies, sub-contractors with its actual assignments and its rights from another, and due to lack of periodic assessment of assets, financial resources and of transparency, close to 50% of the shared oil goes to lobby corrupt pockets as "cost oil". The drilling costs especially, and that of production are much bigger compared with similar cases in the internal and regional context. 26- The environmental situation suffers from negative acts that do not comply with petroleum industries valid regulations and rules, be the local and global ones. The hazardous hydro-carbon leakages into water and underground surface are commonly practices by some companies, and much evidence can prove that some of them neither abide by pro-environmental standards nor do they conduct milieu evaluative studies. Recommendations The RSF calls for authorities monitoring and judicial bodies to duly exercise their obligations, hoping that all concerned entities to fully understand points included and make necessary reforms on basis of the report's which is intended only to offer substantive recommendations and enhancing the above principles under a hoped institutionalized state ruled by law.
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Introduction:
Oil occupies the first rank among other economic activities in Yemen through contributing to 30% of the gross local production and to 70% of the State's general revenues. It is the primary resource of Yemen's economy at present and the most significant product linking Yemen with the world, constituting a 90% of its external exports. Though the first oil excavating operations dates back to 1960s, the first exploration was made only in 1984 in Mareb city, to the east of the country, bloc 18. After unification of the north and the south oil explorations and multinationals began to increase. Yemen oil map comprises 105 blocs, including 13 blocs on production in which 10 oil companies work and 23 on explorations, 3 blocs under ratification and 66 are open blocs. The good for exploration areas cover a wide spot of the country. In a statistics by MOM, the oil production blocs are Mareb, Aljawf, Masila, Hawarim, Janah, eastern Alhagr, Damis, south Hwarim, Malik and Aloqla. The bloc operating company is Canadian Nexen " Canadian national", TOTAL Yemen " French national" , Dove Energy Ltd "British" Janna Hint "American" K.N.O.C South Korean, D.N.O Norwegian, Occidental ; American, Calvally; Canadian, and finally OMV ; Austrian, according to statistics. The exploration area is 25% of the total potential area. First, Government Program submitted By NCG: The National Consensus Government NCG within framework of the general program, developed a number of policies for the oil sector that it promised to implement to ensure meeting locally needed gas material, supporting transparency in exploration industries and preparing a law for oil ..etc. Following is an analysis of MOM performance in comparison with the NCG program. A- Oil The program promised to remove insecurity of oil derivatives in the local market through all of: - To solve problem of oil shortages and provide them at a reasonable price that allow not for smugglers to benefit from subsidiaries, however, the problem still exists due to obsolescence of refineries as the Aden refining has not been updated for 23 years for non-financial reasons. The NCG must be asked for how the difference in subsidiary for the two years was spent? What gains are made throughout the 2 years regarding developing Aden and Mareb Refineries? Was the subsidiaries positive ones for the citizen? Where? How much? Provide an evidence. Though the program promises to enhance competency of production of local refineries, to meet local demands and rehab Aden Refinery, the competency still
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weak which is evidenced by the great deals of imported oil derivatives from overseas, exceeding Yemen's share of imports. The committee sees that enhancing production of the refinery would not exist an overnight, rather the matter requires a true political decision, and a period of 3-5 years starting from its implementation, in addition to tremendous efforts based on an in-depth knowledge with nature of the problem and searching for solutions, and political security stability. Unfortunately, much of above tackle has not been achieved and the promises are improvised by people most of them ignore nature of the problems, while others have no solutions, which has been devastating the country throughout long decades. The NCG program promises to increase storage capacity of oil derivatives and create strategic supplies that fulfill the increasing market demands. Taking the promise into account, the strategic stock of crude oil is among the least worldwide even when compared with that of non-petroleum countries, as the Yemen's supplies do not suffice for more than a week and it can meet demands of a couple of months in other countries. Though the problem of supply has existed 4-5 years before the youth uprising and was discussed by several ministries, with millions of dollars spent for it as travel allowances, meetings and committees' work, a bid was awarded and signed for implementing a strategic storing project against 160 million dollars without enough declaration by the concerned entities on the bidding, the evaluation method, selecting the qualified firms, the consultative firm and how it was chosen, duration of execution etc. These are routine information and should be accessible to the public and the media outlets as long as we are calling for good governance activation. Though the program contains reducing cost of these derivatives, improving purchasing them from abroad and decreasing quantity of the oil used in power generating, it is observed that an average of the imported diesel for this purpose is more than 2 billion liters, equivalent to one billion and 500 million dollars ( given the price of diesel is 120 $ per a barrel in world market). Diesel remains a key material for power generating, however, the country enjoys gas wealth that can sufficiently meet the local needs and in humble cost, which indicates absence of a serious intention for exploiting. The promise to provide for an oil legislature is also an improvisation, as power and wealth monopoly still dominant, with the human being at the bottom of the agenda, due to State absence, however, this law should concentrate on the national dialogue outcomes, shape of the state and mechanism of distributing and managing key wealth among the various levels of the state.
B- Cooking Gas Meeting Local Demands The cooking gas CG still comes from abroad, under supervision of a mafia that sell it in black market in a manipulative manner. A great deal of the material components (propane and butane) is wasted at bloc 18 in Safer by the responsible bodies and the participants in the natural liquefied gas project. The wasting occurs during exporting gas to Belhaf Shabwa, and contracting selling it to all over the world. Two contracts of them did not require a high percent of CG components under slack of the Oil ministry, of the Yemen Gas Co. (gas marketing company) and of Safer Co. to develop mechanisms for increasing, extracting, storing and marketing of these components of natural gas, either exported to Belhaf or reinjected, which causes a great deal of expenses and revenues shouldered by citizens at both the short and long run. Semi-confirmed information indicate that, prior to Youth revolution, Safer had been pressurized by the powerful lobby involved in liquefied gas bargain for either hinder and delay executing required updating projects that target increase CG extracting, or continue pumping large quantities of gas to Belhaf, violating the project's already unjust contractual stipulation, which lead or may lead to some estimated 68,5 million barrels loss in gas production, throughout the project lifetime with more than 4,1 billion dollars. Safer admins. under NCG, still exercise pre-revolution mistakes, rather extra quantities of gas have been pumped, as annual pumping average reaches 1200 million cubic feet a day though Safer confirms in statements that continuing pumping such a quantity would adversely affect the production of gas and condensing. The question remains why are the NCG and Safer so careless about remaining national wealth? In terms of abiding by securing strategic reserving of CG and supporting the committee observed that gas reserves are worse than oil storage, as there is absolutely no strategic gas stock and it is common in petroleum industries that the word "strategy" is loosely used for any stock that its expected demand exceeds minimum 3 months or more. Such storage reaches more than 6 months, like in US. The liquefied petroleum gas stock in Safer (cooking gas) does not exceed 3 days and any intersection of transport trucks along Mareb-Safer road is in favor of Yemen Co. for Liquefied Gas Industry YCLGI as the storage tanks have a limited capacity and could not hold any more production, which consequently causes either a ready-made material be re-injected or freely offered to YCLGI. Both choices means Yemenis out of frying ban into fire. The NCG pledged to expand using natural gas to cover power plants operations and industry and to start a pipeline. Taking this into account as well as the facts, mentioned above, that diesel is still used for such purposes, the pipeline remains dead-letters and gas burning in several
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fields still going on as it happened before the 2011uprising. Confirmed information said that the burnt quantity reached, 29 billion cubic feet, in 2012, equivalent to producing 2635 Giga watt annually (300 megawatt / h) and that 72% of this wasted power in the Total bloc 10, 10% out of which exist in Oqla bloc OMV based in Shabwa. Second, Performance, Production, Consumption and Exporting: Increased Oil Imports & Decreased Exports Corruption in MOM and oil sector in general, has a long history, yet it doubles during NCG period and the ministry failed to tackle imbalances, causing an economic deterioration as it relies on revenues of oil exports, which are 90% of Yemen exports. It is really painful that imported oil derivatives are double the locally produced quantity, a failure accumulating for decades due to rentier economic policies. Aden refinery local sales totaling 810,2 billion YR, while 610, 4 million YR out of which is its purchase from external market. Yemen's crude oil sales is 3,47 billion $, an equivalent to 731 billion YR (one dollar = 250 YR) according MOM data. Only in Yemen did - and still -this miraculous equation exist. An official report by Central Bank of Yemen CBY said that value of Yemen oil exports in the first half of 2013 did not cope with price cost of its oil imports demanded by local market, as the value of imports exceeded, for the first time in the country's exporting, the totaling exports value. The government share of oil revenues for the period Jan through Aug 2013 reached one billion, 812 million $, with a 585 million $ decrease compared with counterpart 2012, the report added. Another report by CBY also disclosed that the government share of exports reached 16 million, 610 thousands barrel in the same period compared with 21 million 120 thousand barrel in 2012, with a 4 million 510 thousand barrels decrease. Yemen imported oil derivatives against one billion 594 million US$ to cover local consumption shortage over the period Jan to July 2013. The government entrusts Aden Refinery to do such importing, while the CBY undertakes value of these imports. Yemen Crude oil production Rebound to 56,5 million barrel in 2012 Official statistics unveiled a more than 40% rebound of oil derivatives production in 2012, compared with 2010, ascribing the fault to the instability witnessed, attacks on pipelines, and sabotage acts on pipelines occurred in 2012 as a result of political conflict among the power centers that consider any actual change a serious threat to its interests though are illegal. More than 65 attacks targeted crude oil pipelines, and it escalates to reach an unprecedented transfer from Mareb to Hadramout where an attack took place in Dec 2013.
Such a retreat included benzene, kerosene, diesel and asphalt from 2010's 944 thousand metric ton MT to 438 thousand MT in 2011, 128 CB in 2012 with 70%. Absence of governmental tight control, represented by Ministries of Defense and Interior's having great number of forces for individual guarding rather than protecting national accomplishments, added fuel into fire of an intense corruption involving Yemen's economy and investing companies in general. Cooking and natural gas production has increased from 585 thousands MT in 2011 to 670 thousand MT in 2012. The natural gas submitted to Belhaf has decreased from 6,977 thousand MT in 2011 to 5,833 thousand MT in 2012, then increased to 8,482 thousand MT in 2013, such a retreat in 2012 is attributed to the several blasts inflicted gas pipeline going to Belhaf, the perpetrator of which is still dubious, while the quantities of gas submitted to Belhaf in 2013 have increased. Third. Widespread Financial & Admin. Corruption: The MOM suffers from multiple violations, mismanagement, absence of good planning and of basic tasks that it supposed to do, as well as bribery, favoritism and state of mood during taking decisions. Major violations and imbalances in the MOM are as follows: a- Appointments: A network of members linked by financial interests exist in the MOM, that manipulate and sell jobs while a remarkable imbalance in admin's promotions is observed. b- Divided Appointments: In violation to relevant criteria, appointments are shared among influential people, and promotions are offered to figures that are proved to be useless, and did not improve oil sector, rather caused it a great deterioration. Multiple MOM senior officials lack competency, integrity and transparency. These appointments are prone to influential tribal and partisan desires and corrupted lobby. Sources in the MOM spoke about the minister's appointing of his relatives in leading positions, such as a director general appointed in its Marebbased office. His brother was appointed as a director general for Hodeida-based Oil Co. Branch, which is illegal. Other appointments and promotions include Saeed Suliman Assmaci, appointed as assist. deputy of financial and admin. affairs, after he held a director general for Minister's office and then for its oil Accounts. Nada Mahmod Aman, former director general of Gas Affairs was also promoted early 2013 to assist. deputy for Gas Affairs. In Jan 2014, daily Akhbar Alyaum quoted the president of Republic's address to a senior official in Oil Sector as saying: who offers your sons scholarships to France?. It is probably the assist. Deputy of gas affairs that is intended by this presidential quest. Ali Saleh Alqadi, a member of the former/ current presidents' lobby, appointed by a presidential decree as assist. deputy to Technical Affairs in MOM headquarters.
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Shawqi Almikhlafi, a geological engineer, loyal to Hamid Alahmer's political party, had never held a leading position, working towards establishing ties and alliances to enhance his political faction's role in oil sector. He was appointed within positions dividing program. Yahya Hasan Alagam was appointed as assist. deputy for Minerals Affairs and has a good history register. Associated with acting director general of oil accounts in 2014, Khalid Shamsan seems to have a relevant master degree in his position and is said to have a good reputation, though his recent appointment was objected by the MOM lobby. He should be given a chance to assert himself and put under probation to test his seriousness about fighting the MOM corruption. Refinery Appointments: These appointments include all of Omar Naser, as an internal auditing department manager for Aden Refinery. Musid Hamid Muhsen, appointed as public relations dept. manager, Ali Abdrabo, as a manager of public relations in the refinery and Dawla Mohammed Farag, as deputy procurement dept. Manager. Presidential resolutions were issued in the oil company, including: 1- Ahmed Shaif Harmil, Executive Director General for Oil Investing Yemen Co. 2- Abdulla Naser Mansor Omar, Deputy Executive Director General for Oil Investing Co.'s Production and Exploration Affairs. 3- Saif Muhsen Asharif, Deputy Executive Director for Safer's Production and Exploration Affairs. 4- Atiq Ahmed Ali Muhsen, appointed as deputy executive manager for Aden Refinery's Co. He is the son of Mahwet Mayor, who is accused of involving in Dignity Friday, a great member of the corruption lobby in Oil Sector as he appointed as manager for Oil Co. Aden Branch . 5- Hamza Sabri appointed as deputy executive director general for Yemen Gas Co. He is a big member of lobby of corruption in Hodeida Branch, while he was Manager for Hodeida Oil Co. Branch. 6- Saleh Fath appointed as manager for the Dhamar branch, a big member of corruption lobby of the company, as he was the financial auditing. 7- The brother of Oil Manager was appointed as manager of the biggest branch of the Hodeida-based oil co. Decisions on Appointments in Oil Company Several of the master and Ph. D holders and engineers working for the MOM who consumed their lifetimes in search for knowledge and employment, has no job titles and would wait for so long to have promotions. Surveying a number of engineers shows the MOM bad situation. The leadership is always keen that the close lobby be absolutely loyal to him , keeping his secrets, files and checks and daily dealings. It is the ignorant people who are accepted, approved and meticulously selected by the MOM corruptors.
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C- Targeting National Employees and fake Yemenisation MOM administration is futile and disabled, as national employees, experience an organized blackmail by MOM influential, especially the productive, either be highly qualified labors or not. This extortion is committed through bringing foreign, often, highly-paid employees. The Yemeni national engineers have limited authorities and low paid compared with foreign counterparts. The duties and responsibilities of these engineers lack precision, scientific and technical bases. Labors in various technical and professional field, with limited competency and high pay, are brought into the country by sub-contractors, against high costs, which accordingly causes a high production and operation costs, while thousands of technicians and graduates of vocational institutes are either unemployed or involved in job out of their specializations. Many Yemeni employees for parent companies and sub-contractors suffer from right violations. Some of these companies (producing ones) are condoned as they violate Yemeni people rights by unilaterally annulling direct contracts with some Yemenis and processing them with sub-contractors, to deprive them out of their rights and to sign additional contracts with sub-contractors which cause extra 50100% charges for them. These charges go to service companies instead, which costs the country tens of thousands of dollars. The foreign labors lent by parent companies to several productive companies, receive beyond imagined wages. For example, the pay of admins. and department managers 40 to 50 thousand Euro per a month, as well as travel, accommodation, insurance and school children charges. There are several violations to partnership contracts and to terms of filling such positions. MOM labors and Yemenisation departments are unable to secure national cadre rights in contracting and parent companies, nor do they enhance their standards to reduce the gap between them and the foreign labors or defense the rights of the former in accordance with Yemen valid law of labor. Exceptional privileges to Relatives: The minister's office, his deputy, assistant undersecretaries, executive managers and head of boards appoint individually loyal figures in sensitive positions to ensure hiding their (bad) exercises and corruption. Illegal Expenses and Corrupted Leaders: Great amounts of money are spent as rewards, sundries, and allowances to MOM leaders and senior officials. The amounts are spent through several pay sheets in which many names are repeated, and the minister's name was included in each itemized list. Rights of simple employees in Financial Affairs are hindered in an unprecedented manner, for example Khalid Alhashidi. The recently resigned minister is the most powerful figure in MOM, as he had been in MOM for more than 20 years, yet it is too difficult to eradicate his corruption.
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Some of its major forms includes blackmailing real investors and imposing an enforced partnership with them against what they claim as protection, turning transparency council of extractive industries from a private into a state-run institution. Approving tenders contrary to terms of reference, direct bargaining without any bidding or supervisor as well as implementing useless projects and contracting with fictitious companies are all forms of corruption. They also include receiving commissions from foreign companies against accepting dubious bargains, failure to tackle leakages either in oil tankers, oil reservoirs and continuing rejecting, destructing environment, inability to fighting contamination, and using of traditional methods for recycling. Illegally Imposed Amounts: The minister of Commerce and Industry, member of National Dialogue Conference NDC South work-team, Mr. Saad Adeen Bin Talib said July 22, 2013 that Ahmed Adarab, entrusted with protecting Hadramout-based oil companies, receives 2 million and a half dollar on a monthly basis from these companies, against protecting them. In a table submitted by Bin Talib to South team members, three oil co.'s. pay $758,436 monthly to influential army leaders, while other companies pay $510,900,00 every 3 months. These amounts, which the influential army leaders receive, are illegally paid considering army as feudalism. MP Ali Ashal said that Ministry of Defense received in 2008 through 2010 from oil companies against such protection, the following: - In 2008, one million, 500,00 dollars. - In 2009, one million, 450,00 dollars. - One million, 351,000 dollars. Following is the table submitted by Saad Aseen Bin Talib on the amounts paid by oil Hadramout-based oil companies to Army forces for Feb 2013:
Co. DNO DNO Nexen Petromasila Total Occidental Calvally Yemen Gas Co. Calvally Calvally Bloc Amount Period Military unit 32 $18ooo Quarterly East Military Region 43 $18000 Quarterly East Military Region 51 $54900 Quarterly East Military Region 14 $300000 Quarterly East Military Region 10 $120000 Quarterly East Military Region S1 $53000 Monthly 19 infantry brigade 9 $50000 Monthly 37 armored brigade Belhah772436 Monthly Defense Ministry shabwa Amounts paid against guarding Crude oil tankers 9 2400000 YR Monthly 37 armored brigade 9 1200000 YR Monthly 37 armored brigadeMeka
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The oil and minerals committee's report presented before House of Representatives on Jan 9, 2014 disclosed challenges the oil explorations face, showing the amounts paid to military units and Ministry of Defense by oil firms for the above purpose. In this context, the sums paid are up to 238,127,920 US$, equivalent to 51 billion 197 million, 502 thousands, 800 YR, as per the report. The ministry of defense share of Security protection reach 772,436 US$ a month. More than $238 million is yearly granted to Military Units and Ministry of Defense. OMV, bloc 52 gives $9,989,399 per month to the 21st armored brigade against crude oil tankers guarding, and $1,080,200 to Brigade no 107 against the same purpose. Actual Reasons of Local Market Oil Shortages In a letter addressed by Ahmed Basuraih; Deputy Minister of Oil, to the prime minister confirming the oil security is highly critical and the stock supply is lack. The letter pointed out such a bad situation was a result of lack of cash flow required to settle due rights of the oil tankers in Aden Port waiting for settlement and offload accordingly. This is a threat for supply security and would remain, unless these ships discharge. The required payable amounts are estimated at $250 million. The Oil Company face challenge of power supply due $88,3 billion, as a result of Yemen Airlines payable 6 billion YR, the ministry of defense due $4,3 billion, which directly affected the cash flow necessary to purchase oil derivatives, the letter added. The oil deputy minister addressed the prime minister asking him to order the due amounts be settled so that the MOM can fulfill its obligations. The letter attached a memo of oil derivatives distributions by Yemen Oil Co . including the governmental institutions payables totaling 104,878,042,869 YR in favor YOC, yet the prime minister does not take any action to oblige these institutions to settle their dues. " in reference to discussions intended for crude oil direct marketing, we received the Aden Refinery executive general manager's letter including demanding a tender to purchase local market needs for Oct through Dec 2013, reduce 100 thousands ton of diesel to continue purchase via Arab Rig company and that oil-loaded tankers return unloaded, the letter said. In view of either delaying these derivatives, or being highly priced, under political and military bad conditions and ramifications of building stock of petroleum needs, we would be pleased to advertise for a bidding for above period, ensuring the cash flow required to cover the tender value" the letter added.
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In Aug 18, Finance Minister FM sent a letter to Oil Minister in which the former rejected increasing YOC allocations. "the FM said in reference to the subject of asking for increasing YPC allocations to 141, 900 tons of benzene and 315.600 tons of diesel per month, it is observed that the local market needs are less than the quantity agreed upon with YOC. We hope you order the YOC to abide by existing allocations" the FM said, adding that great deal of oil derivatives are smuggled internally and externally. Pipelines Targeting: Statistics say the number of blasts targeted these lines in 2012 are more than 41, including 11 explosions within December, which caused a long halt to production and exportation of oil and gas, in addition to their reflections on Aden and Mareb Refineries stoppage. The loss sustained by national economy due to the pipelines blasts are esteemed at close to $500 million through the first 9 months of 2012, as per statistics. Ministry of Finance unveiled that government revenues in third quarter of 2012 rebounded 4,9% as a result of the exporting pipelines halting for several times, due to acts of sabotage. In a financial report on government resources, actual revenues in the 9 months are trillion, 505 billion YR. Oil revenues retreats are 104 billion YR ($500 million) with 13,1% of total estimates, as a result of decreased oil revenues, as per the report. The NCG declared in 2013 budget financial statement that Yemen sustained economic losses, reached close to $500 million, due to sabotage, an estimated averaged $15 million, causing a public revenues rebound. The Oil Exploration Co. Safer, said in previous statement that daily loss, due to pumping halt, reaches 100 thousand barrels, 310 million dollar per a month. Another statement by News Yemen said that explosion occurred in all of Sirwah and Wadi Ubaida, adding that executing perpetrators are close to 50 peoples. Other cases are registered against anonymous people. Yemen's oil production is 280 thousand barrels daily, most of which are exported. Yemen depends on oil revenues to support the budgeting, though political crisis and instability made the country on verge of breakdown. In an investigation by the Parliament on Nov 14, 2013, Minister of Oil Ahmed Dares said that Yemen's lost $4 billion, $600 million, within 2 years as of March 2011 to March 2013 due to damaging gas pipelines, noting that losses of Safer resulting from pipes attacks are 17 million 940 thousand barrels in March 2011 through 2012, with a value of 1 billion and $820 million, while gas losses are $222 million and losses of the pipeline using company are 22 million, 900 thousand barrels, with a value of 2 billion, 700 million dollars. Financial & Admin. Corruption Stood on 2012 report of Central Apparatus for Monitoring and Accountability CAMA, that tackled the MOM reviews on the same year, the RSF's committee
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observed some imbalances and violations in MOM, including 49,974,323,85 dollars as collections of 2012 against grants imposed on oil companies, revenues of using pipelines and facilities. Expended amounts during the same year are 72,979, 950,67 equivalent to 15,690,689,394 YR, as one dollar equals 215 YR. Reviewing available data on collections and expenditures throughout the same year, it is noticed that the public treasury was prevented from 4,167,697 US$, the MOM specialists do not timely submit closing financial dollar-based accounts on 2012 fiscal year, and the accounting registers did not include the state uncollected dues on oil firms against pipeline usage for 2012. These amounts reach US$ 1,617,813, in addition to the 600,035 US4 accumulation from previous years. It is also observed that the MF has, in coordination with MOM, opened a special account for the pipeline usage revenues while they should have been collected for public state account instead. These 2012 registers also did not show the MOM dues but uncollected revenues from scholarships, estimated in Dec 31, 2012 at US$2,600.00. $3,003,210 was referred from the training account to institutional support account, which means the MOM violation of spending from dollar-based accounts for the purposes set in production partnerships deals on the basis of which training grants are collected. The MOM spent 1,338, 968 US$ in 2012 for so-called expenses to arbitration filed by Saba Co. against the MOM pertaining to bloc no 20. Some invoices spent for Clyde against attorney's fees include $95,008,59. The MOM deducted payable taxes against (free profession tax), which causes 38,179,21US$ that should have been collected for Tax Authority accounts. Total pledge balance in Dec 31, 2012 is US$23,456,418,39 including pending pledges with an $1,576,968,45 increase compared with 2011's US$21,879,449,94. The MOM spent 3,852,849,90 against allocations of social development projects in oil provinces, violating spending laws provided by the premier's resolutions no (376 for 2010). It also spent 25,058 as travel allowances for illegal travels, and endorsed in 2012 a monthly bonus for employees of its affiliating provincial units without a sufficient balance. The MOM took no action regarding pending $560,655,14 as pledges by Amid-East Agency, and the specialists settled a total of $127,352 against some pledges spent in 2012 and a total of 125,466,45$ pledge by Clyde for payments under receiving oil bloc no 14. The opening and closing balances of several bank accounts are not identical with the registrars accounts, as the opening balance difference is $54,810,25 and the closing is $218,779,25. The MOM specialists listed $11,549,980 against confiscated bank bonds presented by a number of oil companies, and spent 2,199,890,896 YR including 3,736,053,29 ($803,251,457) from the budget and YR accounts, which indicate great amounts accompanying reward spending as a result of violating organizing laws. These are major notes observed in addition to the detailed report annexed to this material (the Arabic version), considered to be part and parcel of it.
16
MOM Internal Monitoring System Considering dollar accounts for 2012, several shortcomings on existing internal surveillance on these accounts, which oblige the MOM to take action required to avoid them and implement the CAMA recommendations of relevance. Following key weaknesses are reported by the CAMA: Though ministerial resolutions of relevance were issued, the MOM still openly spends from dollar accounts without abiding by preparing evaluative budget with uses of these accounts as per its needs within available limits (including the allocations accredited in the state public budget) and these resolutions remain out of effect, which causes incorrectly directing for the MOM's uses of its grants. It also tends to spend from deposits belonging to other entities ( bank bonds, tax authority dues and security protection allocations) The registers deem to be unlawful, as they are full of abrasions and amendments, and non-abide by accounting methods to cancel and amend entries. The MOM still use multi-sources pertaining to dollar and Rial accounts. They do not open regular and monitoring accounts required for several collections in which the MOM is a mediating part, nor do they perform internal auditing for settling credit entries proved in the same year. Several auditing processes were inexact, such as amounts spent on dues of Clyde, a legal consultation firm, against service it provided. The specialists also neither offered supporting documents required for auditing nor answered the CAMA representatives'' quests. Banks Accounts The MOM's headquarters registers unveil total of banks accounts in Dec 31, 2012 as US$ 56,859,538,08. Below are more details:
Account Institutional support IS Training Social development Pipeline using Revenues total Balance Dec 13, 2012 $22.367.533.77 $17.812.647.78 $10.189.606.82 $9.489.749.71 $59.859.538.08
Upon reviewing, opening and closing balances of several bank accounts seem unmatched with the accounts listed in the MOM registers, as follows:
Account Balance 1/1
Registers: a Balance 31/12
Bank balances: b Balance Balanc 1/1 e 31/12 20.397.83 1.2 18.389.61 22.577. 408.8 17.821.
Institution al support Training
20.344.321.2 18.388.317.8
22.367.533.16 17.812.647.8
Difference a & b Bala Balance nce 31/12 1/1 53.51 209.875 0 1.300 8.904
17
Social developme nt Total
8.344.056. 7 47.076.68 5.7
10.189.606.8
7.8 80344.05 7.0 47.131.50 6.0
551.8 10.189. 607.1 50.588. 567.6
0.25
0.25
50.369.788.4
54.81 0.3
218.779. 3
The institutional support open account devoted to deposit grants of this support collected from oil companies in accordance with production sharing agreements issued by virtue of resolutions is used by MOM for other grants gathered from these companies, yet supposed to be spent as per the agreements of relevance. Through analyze IS private account Dec12, 2012 and to how extent MOM abide by amounts; either payable for others or set for other purposes, as follows:
Description First: amounts belong to others due in DEc13,2012 Other co.'s bank bonds for confiscated past years Other co.'s bank bonds confiscated for 2012 Debt accounts in 2012 Total Second: grants devoted to other purposes Research and development grants Data bank development Total Grand total (a) Bank balance for account Dec 31, 2012 (b) Difference (a minus b) Amount in dollar 349,980 11.200.000 12.649.673.17 24.199.652.17 895.000 785.000 1.680.000 25.879.653.17 22.577.408.77 3.302.244.40
It is clear from above the account is sufficient to meet others' dues which MOM, only as being mediator, collects, rather it spent $3,302, 244,40, out of these amounts to cover its own expenses, as the amounts devoted for other purposes is the revenues of 2012 only and do not include accumulative balance of past years. MOM transferred a discounted ($3,003,210) from training allocations and deposited it into IS account, bank party's against 50% of the monthly bonus of MOM affiliating units. The CAMA confirms MOM is required to spend from grants within the set purposes and sharing contractual stipulations. MOM Accounts & Sources of Revenues Revenues Accounts: Depending on the registers, the collected revenues in 2012 are $49, 974,323,85 against IS, training, social development grants and pipelines using, in an increased $5,245, 524,16 with 90% reduction compared with 2011 revenues. The CAMA, noticed the following: 1- Grants Sources: The collected revenues as grants from oil companies in accordance to the production contracts of sharing, and to the registers of Dec 31, 2012, are 16, $60,609,875 with a $3,500,260 increase and 26,70% percent, compared with the 2011, $13,109,615 revenues, as follows:
18
1- 1- The total revenues collected from oil companies against IS grants in 2012 are $4,625,000. 1.2. The total revenues collected from oil companies against IS grants in 2012 are $4,704,875. 1.3. Social development Grants Revenues: The total revenues collected from oil companies against IS grants in 2012 are $5,600,00. 1.4. The total revenues collected from oil companies against research and development grants in 2012 are $895,000. 1.5. The total revenues collected from oil companies against training grants in 2012 are $785,000. Upon reviewing these grants, it is observed that the oil companies unsettled payable revenues are not collected by end of 2012 fiscal year, though the related registers did not show this, which adversely affected them being collected and not monitored by the MOM. The due uncollected grants reach a total of $2,600,000, detailed in following table:
Co. Bloc Instructional Support Grants in Dollar 100,000 150,000 150,000 100,000 100,000 100,000 50,000 750.000 Training Grants in Dollar 100,000 150,000 150,000 100,000 Social Development Grants in Dollar 100,000 300,000 300,000 100,000 Total in dollar
Kuwait Energy Gallo-oil Gallo-oil Dove Energy Sinopec Kuwait Energy Sinopec Total
49 13 R2 73 1 74 71
300,000 600,000 600,000 300,000
100,000 100,000 800.0000
100,000 50,000 1.050.000
300,000 200.000 2.600.000
Revenues of Pipeline & other Oil Facilities The total revenues collected from oil producing companies against pipeline use and other oil facilities is more than the registers' listings and the bank disclosure, 22,051,589,18, as in the following table:
Description Revenues of Safer Pipeline tariff Hunt Ganna, bloc 5 Revenues of Safer Pipeline tariff Occidental Co., bloc S1 Revenues of Safer Pipeline tariff O.M.V bloc S2 Revenues of Safer Pipeline tariff Calvally bloc 9 Revenues of Safer Pipeline tariff Petromasila. Total bloc 10 Revenues of Safer Pipeline tariff Petromasila. Dove, bloc 53 Revenues of Safer Pipeline tariff Petromasila. DNO bloc 32 Revenues of Safer Pipeline tariff Petromasila. DNO bloc 43 Revenues of Sea Ports Total Amount (in dollar) 1.183.904.08 517.827.20 517.827.20 1.103.023.07 14.590.026.40 1.345.939.00 741.612.65 372.405.20 175.852.96 22.051.989.18
19
Upon reviewing, it is observed that MOM still hide delayed or unpaid amounts to the pipeline tariff account, as the delayed revenues against this purpose totaling $1.917.813. detailed as follows:
Co. Total
Bloc 10
Amount in dollar 1.345.315
D.N.O Canadian Nexen Calvally D.N.O O.M.V total
32 51 9 43 S2
1 136.229 65.834 943 69.491 1.617.813
Notes Difference in amount for several months, paid in Jan 2013 For Dec 2011 For Dec 2012 For Dec 2012 For Dec 2012 For Dec 2012
The CAMA did not stand on any legal action taken by MOM to demand due revenues of the pipelines, for above companies, 2012. The CAMA indicates, in its reports presented to the MOM, dues for the state as a result of the pipeline use by these firms for past years, detailed as follows:
Co. Dove Energy D.N.O D.N.O Occidental Canadian Nexen Calvally O.M.V total Bloc 53 32 43 S1 51 9 S2 Past years payables 53.545 18.641 118.569 555.589 474.384 3 1.221.034 146.654 474.345 620.999 Collected in 2012 Uncollected till 2012/2013 53.545 18.641 118.569 303 408.935 39 3 600.035
Hence the actually collected dues on these firms $620.999, with 51% of the total unregistered dues against these firms. The MOM has not taken any action to oblige these firms to pay the state-owned dues. Aspects of Private Accounts and Finance Resources Use IS Account uses: The assigned committee observed the two-year transition turned to be a marathon of looting and corruption before the ministers, first and second ranked State officials and some of the third one, which is reflected in IS and training accounts. These accounts supply a fertile area for specific departs. , employees and loyalties to gain wealth, as great deal of bank accounts are monopolized by these lucky figures. Therefore, following expenses associated with several legal and financial violations, described as follows: 1- External consulting services expenses:
20
The total of this account, as shown by the registers in 2012, reach $1.423.966.7. 2- Oil Companies expenses: The total account expenses for the same year, reach US$961.479.9, including Clyde and Dilwate fees and the ministry team expenses. 3- Travel Allowances, expenditure on Conferences, and on official external tasks: These expenses reach US$164.016 as shown in Dec 31, 2012 registered data, with a $119.762, and a 271% increase compared with 2011's $44,254. Through checking documents, it is observed that sundries and travel allowances were spent, violating article 13 of the cabinet no (201) for 2007, approval of a travel allowance without required settlement, and extravagance in spending.it is also observed that the ministry's participation in workshops and seminars is useless. The MOM spent $71.730 as a travel allowance for a flight to Paris to follow-up the complaint filed by Saba, bloc 20 (referred to hereafter as Saba case). Further details as follow:
Ref. No 18
Date Jan 10,2012
Amount in $ 14.670
Description Travel allowance for committee of Saba complaint Travel allowance for eyewitnesses Travel allowance for 10-day visit by Assist. Committee members. Travel allowance for 4 eyewitnesses
52 54
Feb 4,2012 Feb 6,2012
9.780 35.400
266 total
May 26,2012
11.880 71.730
Upon checking these amounts it is clear that no excuses or details are provided for such travels, no attachments for the commercial committee's ask for attending eyewitnesses, as well as the spending included 20% travel allowance sundries of the total allocation of the envoy. The spent amount is $5.900 with an increase of $4.800 compared with the cabinet's specified. 4- Remuneration - The remuneration account expenses reach, as shown in MOM registers for fiscal year Dec 31, 2012, US$3736053.29. - there is a 122% increase in these expenses for 2012, compared with 2011. - there is no compliance with procedures regulating remuneration, as provided by law No 19 for 1991 and its bylaws, on civil service. - identify great deal of amounts as remunerations for beneficiaries, without assessing the exerted efforts, and without any supporting attachments. - several remunerations are granted to persons working in MOM belonging units. Several work teams formed from many governmental bodies in which the MOM is only a member, as the rewards are taken from MOM accounts.
21
Checking a sample of accounts, the CAMA indicates that a total of $280.987 was spent as rewards for oil companies stock-taking committees. Other amounts estimated at $237541 were spent for unassigned persons who did not participate in stock-taking, compared with 9286750 spent for the assigned team . The available details are as follows:
Ref. No 84 Date Amount in YR 6740000 3992000 Description Assigned persons rewards 135.0000 384000 Illegal rewards 5390000 3608000
29,2,2012
Taking stock of Nexen Bloc 51. Rewards for stock-taking of OMV bloc S2 Rewards of Nexen stocktaking bloc 14 Rewards of Occidental stock-taking bloc S1 Rewards of Total stocktaking bloc 10 Rewards of Calvally stocktaking bloc 9 Rewards of DNO stocktaking bloc 43 Rewards of Safer calibration oil counters Reward for Crude oil calibration of Nexen Reward for Safer Crude oil stock taking total
85
29,2,2012
6850000
1850000
5000000
116
11,3,2012
5304000 4608000
300000 700000
5004000 3908000
202
16,4,2012
6260000 5006000
710000 568000
5550000 4438000
425
29.7.2012
7437500
420750
7016750
423
29.7.2012
7484000
2636000
4848000
247
6.5.2012
6380000 60061500
368000 9286750
6012000 50774750
The CAMA keeps a record for remunerations based on a number of invoices, as follows: Ref. No 305
22
Date 19.6.2012
Amount dollar 26.853
in
Description Remuneration
366
7.7.2012
25.898
365
7.7.2012
33.403
for Safer stocktaking Remuneration for DNO, bloc 32 stock-taking Reward for Petromasila counters calibration
473
13.8.2012 total
24.324 110.478
Several spent rewards under different names (remunerations on collected oil gas revenues, on revenues tax dues imposed oil co.'s, and on oil co. exploration guarantees). Such expenditure is a repetition of what is already spent under Month Reward, an estimated $1.268.241. A US$ 136.397 was granted as rewards to head and deputy of assist. Defense Committee and finance committee, as detailed in the following: Ref. No 78 Date Feb 28. 2012 Amount dollar 7875 in Description Reward for Defense Assist. & Finance Committee Reward for Defense Assist. Committee Reward for fulfill Defense Committee tasks Reward for prepare judicial notes matrix Reward for legal affairs Gen. Dep. Reward for head and members of defense committee Reward for the assistants
49
Feb 24. 2012
29000
50
Feb 24. 2012
6736
360
July 7. 2012
24850
468
Aug 12. 2012
21586
472
Aug 12. 2012
21586
454
Aug 6.2012
7700
5- Donation The spent donation totaled in 2012, $161.436.49 as per registers of the year, with a $86313.49 (115%) increase compared with 2011 $75123.
23
Ref. No 103
Date March 5, 2012
Amount dollar 5000
in
Description Medical aid to Deputy minister Mr. Ahmed Dares Medical aid to the undersecretary Medical aid to the undersecretary Medical aid to the undersecretary Medical aid for Financial Manager Medical help to Oil Accounting Manager Medical help to the minister office director gen. Medical help to Gas Manager Medical help to internal auditing Manager Medical help to External Relations Manager Medical help to the minister advisor Medical help to Oil Media Gen. Manager
166
March 5, 2012
4000
398
July 17, 2012
2000
70
Feb 14, 2012
2000
104
March 6, 2012
3000
152
March 28, 2012
3000
259
May 21,2012
2000
386
May 21,2012
411
July 21, 2012
2000
480
Aug 8, 2012
600
512
Sep 17. 2012
3000
1500
648 Total
2000 32100
The CAMA confirmed the necessity to abide by regulations of spending such assistance, as these expenses were processed in violation to medical lists. It also
24
spoke about $7000 spent as a medical help to Units leaders, without attaching supporting documents, as well as $10.500 to foreign employees who belong to other Gov. entities. The specialists listed entry no 129, $7875 in March 18, 2012 in Medical Aid account though the amount is a reward to Minister and some employees, which contradicts reality. 6-Salaries & Contracting Wages Account The salaries and contractual wages during 2012, $16.850. This account included the ministry's spend of $14.400 as fees for Ministry special doctor, Yahya Assuraihi, though the ministry has an across-the board health insurance. 7-Propaganda & Advert. Account: The actual expenses in 2012 for this purpose are $37.37861, as the ministry spent amounts as dues for private and unofficial journals and magazines against published congratulations in valid rules.
8- Equipment and tools The actual spent money of this account in 2012 is $233.800. according to CAMA report, there are multiple violations accompanied tender execution. 9- Other Spending Account The total expenses against other sundries for the fiscal year 2012, $169.355.32, with a 56.973 (51%) increase compared with 2011's. Through documents auditing of a sampled expenditure:
Ref. No 61
Date
Feb 2,2012
Amount in dollar 39.859
Description
Against per diem for employees of the public Admin. to attending budget meetings and programs associated with oil companies for a period of 60 days, 2012. Upon checking enclosures, official tasking for participants are not attached. against translation Service, for Alhasani
29
Jan 16, 2012 March 11, 2012
3,511
118
7,579
Against travel allowances, for discussing oil Companies budgeting. No support enclosures are provided.
25
It is observed that $46.109 as sundries and expenses devoted to complaints filed by Saba Co. Bloc 20. Following is more details: Ref. No Date Amount dollar in Description A reward for prepare a reply to a challenge on Saba case. 134 March 2, 2012 7,560 It is noticed that the amount is incorrectly registered, and it should be put in remuneration entry instead. Against performing tasks of Saba Case, bloc 20, for assist. Committee (37 members)
354
July 2, 2012
23,391
The MOM also spent $ 46.109 as sundries and expenses for Saba Case. MOM $ Affiliating Units Budgeting: Registers for 2012 show that MOM's account actual expenses reach $5.726.328..47, as well as $6.281.827.06 from affiliating departments. Checking these registers, it is clear that MOM spent from affiliating units' IS account without get them registered as trust till supporting attachments of correct spending are provided. A sample expense made as per documents as follows: Ref. No 414 Date 7/24 12.982 Amount in dollar Description MOM contribution to reward YGC's Board, for 2012 Notes Spent without supporting doc.'s
414
7/24 882
506
9/26 1.911 15775 Total
Spent without supporting doc.'s Spent without supporting doc.'s
A total of US$ 4.667.170 is registered against settling trust expenses spent throughout the year, for a number of affiliating units, as follows:
26
Unit Oil Production & Exploration Geological Survey Center for Seismology MOM provincial Offices Oil Training Center Total
Period Jan. to Sept. Jan. to Sept. Jan. to Sept. Jan. to Sept. Jan. to Sept.
Amount in dollar 1.974.326 1.951.234 120.279 587.978 33.353 4.667.170
Checking background of the above it is observed that MOM provided only the approved monthly incentive to its affiliating units, and the settlement for these amounts was based on general documents instead of adopting executive procedures to check safe spending to the relevant units. 10- Third Oil & Gas Conference account TOGC According to invoice no (235) dated May 13, 2012 the spending of this account is $10.506 against Maraci dues, to execute part of media campaign on TOGC. Notes on this expenditure is as follows: 1- The dues were approved without MOM's abiding by State Bids and Out-bids rules and signing a contract with both Mass ($14.017) and Together Marketing Telecom ($5.370), hence, MOM is responsible for such a violation. 2- Photos rather than original copies were approved for such expense, which is illegal. 3- The minutes of the meeting, held among the financial and field committee tasked with advertisement restriction, and head of media campaign, to know about concluded results , was not attached, despite asking for it. 4- The actual period for TOGC advertising implementation was not set, as the field committee report informed about the company's delay regarding propaganda that was supposed to be performed on Oct 7-21, 2010. 5- The former minister made explicit order to internal auditing dept. to spent an already abolished check. Aspects of Training Account The amounts spent for this account during 2012 reach 1.940.325.74, as in the following: Amount in dollar 1.158.920.43 78.089 117.850 117.354.13 288.155.06 35.102 26.659.30 50.878
27
Description Expense for Training Center (all spent for the training account) Universities' fees Overseas travel allowance MOM & affiliating Units budget feeding Affiliates account feeding Study assistance External training fees Local training
2.284 18.304 10.549.82 1.904.325.74
Travel tickets Training building project Other expenses Total
This analysis indicates that 2012's $1.375.649.55 expenses of the training account, with a 528.676.19 (38.43) increase, compared with 2011. Major observations to the expenses can be summed up in the following: 1- No an approved plan for training, to meet MOM needs, as there were study dispatches to overseas. 2- The MOM did not appropriately exploit available resources of training, through a comprehensive plan. 3- It offered expenses to several dispatched without referring to relevant organizing institutes. 4- No reliable criteria for past time, to organize admission in universities for Oil Sector employees in bachelor and master degrees, leading to arbitrariness in these study for all disciplines. 5- There is contracting with local English lang. institutes to train employees, though state-run institute do implement such courses. 6- Former Minister Khalid Bahah in 2006 ordered an admission for all employees of Ministry in training local centers, and covering relevant expenses from the training account, and in 2008 former Minister Amer Alaidarous ordered the affiliating units' employees be stopped, yet the instruction was not executed, and the ministry has not followed-up collecting training allocations from admin. and financially independent units to MOM training account. 7- MOM rebated unlawful amounts from training account to cover irrelevant proceeds i.e. an estimated $65.880 against dues on arbitration filed by Saba case. 8- The spent-on training $30.000 was covered from grants allocated by several oil co., which require the expenses be included in special accounts for this purpose. Study Assistance: Inspecting a number of documents, the CAMA points out that $35.102 was registered in Dec 31, 2012 which can be described as follows: 1- Though specialized training center are available, MOM approved spending study help for English language institutes. 2- MOM specialists divided the study assist. entry listing it in various training accounts, which cause correct account not to be reflected. For example assistance given to Wadha Alanci, though she is not an official employee: Invoice No 8 Date Amount dollar $140 $130 in Description Study assist. Wadha Study assist. Place of entry Study assist.
1/1 82
28
to University fees
2/7
to
Wadha Total $400
3- the MOM spent $430.565 against university fees and accommodation overseas for a number of persons i.e. $28.000 registered in study assist. entry though part of it covered from MOM training account, and the other part $30.000 from study assist. collected from oil co (Dove- DNA) to training account. It is observed in this respect spending above amounts without an evidence to notify both ministries of Higher Education and Finance on paying such assist. from its training account, to a reiterated spending. Spending is made without neither attaching support documents of fees settlement, nor get them registered on their account. 4- The scholarships above are not rare specializations and can be studied in Yemeni universities. 5- Grant provided to Badher Ahmed Assarif includes $7.500 as study fees and accommodation for July 2913 to 2014 and the last academic year was spent in advance, besides absence of a notification that he is a senior. 6- The MOM remains approving abroad scholarships though it is not officially authorized to do so. University Tuition Fees: Actual spending of this account is $78.089, including $59.026 as per the registers on tuition fees for private universities. Following is notes with relevance: MOM makes master and bachelor degrees available to its employees without organizing regulations, or penal measures that may be taken against defaulters, in local private and state-run universities. - The scholarships of relevance are not rare fields, and most of the beneficiaries are not affiliates to MOM head office. - Some of beneficiaries coordinated with their intended universities without referring to the training center to confirm their acceptance. - Petroleum Training Center does not follow-up students referred to these universities, by naming out-of-study people , attending and graduates. The MOM deduct portion from amounts referred by the training center ( as a result of no studying and demanding payment for registration) adopting such a rebate, which indicate absence of checking amounts submitted by these universities . - Abroad Travel Allowance - The expenditure of relevance reached $117850, through the following reviewing: MOM spent in favor of several dispatches without reference to Training Center as being entitled to training issues, as follows: Invoice .no 335
29
date June 30,
Amount in dollar 4950
Description ( Travel
allowance beneficiaries)
External travel allowance to
224 316 425
April 23, June 16 May 2
2512 11850
6000 671 Dec 16 4560 225 April 25 4800
Hamoud Dhaif Allah To Mahmodh and Zaid Abdulqader To abdo sharaf and colleagues. To Legal Affairs Public dept. Employees (4), experts qualifying To Legal Affairs Public dept. Employees (3) for Iner'l. Arbitration To Legal Affairs Public dept. Employees (3) for Iner'l. Arbitration (Turkey)
total
34672
The CAMA recommends these expenses be made within frame of a pre-plan through Petroleum and Minerals Training Center. $65880 was spent for Defense Assist. Committee on a voice no 335 dated on July 1,2012 of Training Account These expenses are illegal, as MOM covered them from the training account allocations already dedicated for training purposes, turning the account to be incorrect. The %20 spent as sundries was not registered as pledge on the minister, and without providing supporting documents. Training Center Building Project Spending on such a project totals $18304 against Consulting Office's fees (Isham). The actual expense represent the third and final portion (%40) out of the value of achieved construction engineering started to be paid from 2010. MOM contracted with above office to prepare designs though a specialized dept., Gen. Dept. for Projects is already available which could have saved much of the spending. Responsible for such a financial approval lies on MOM. MOM Budget Feeding Total spending from Training Account as feeding to MOM and its affiliating units is $405689.19. Such amount, upon checking, is spent as per invoice. No 349 against transportation allowance to newly graduates distributed on MOM headquarters, as detailed in following:
Description MOM Hadramout

30
No. of Students 18
Jan to June 2012, biannually 2376000
Office (Valley) MOM Hadramout office (coastal) Shebwa-based Office Mahra-based Office Mareb and Jawf-based Office Geological Survey Ass. Oil Production & Exp. Ass. Petroleum Training Center MOM Headqt's Grand gross
19 10 9 7 212 243 15 128 661
2508000 1320000 1188000 924000 27984000 32076000 1980000 16896000 87252000
Approved based on 2012 Committee formed minutes, the amount was not registered as a pledge against provincial offices till all support attaches are provided, and no confirming of actually attended days in the training center ( attendance sheets, participation cert's, etc.). Therefore, the CAMA hold such offices in provinces accountable for the illegally spent amounts. Social Development Account Use Total of these expenses is $3852849.90, based on fiscal year 2012 registers. More details as follows: Amount (dollar) 799593 1106338 630029.32 1338725.97 7005 4140 18.61 3852849.90 Description Social development projects SDP (Hadramout- Coast) Social development projects SDP (Hadramout- Valley). Social development projects SDP (Mahra) Social development projects SDP (Shebwa) Contributions and donations Social development projects SDP (Mareb) Other expenses total
As resolution no 376 for 2010 was issued to identify allocations for such projects, reviewing such expenses shows following: Based on 2012 account data by provided specialists, and on comparing them with the data shown in Central Bank of Yemen's (CBY) social development account, following differences are observed:
31
No identification among the specialist data and that of CBY of relevance. The CBY registers show actual expenses that are not included in MOM registers. Several law provisions are violated during approving plans for such projects, supposedly to be submitted by concerned provinces, causing a delayed presentation and unduly benefiting from these allocations. The provincial offices did not abide by submitting the plans with all documents supporting allocation-demand as per the mechanism. Several expenses deducted from SDP account according to the demands submitted lack followed procedures and legal confirm to an approved allocation. The gen. dept. for projects accepted a number of submitted plans without verifying safe procedures of preparing them, which adversely affects MOM postsurveillance. MOM' monitoring dept.'s are not involved in networking required for planning implementing safety, rather they breach principle of team work. Affiliating Units' Account Shown in 2012 fiscal year registers is $780 in addition to $20095494.49 as pledges referred from past years, with a grand total of a registered $27898386.49. The total of pledges settled for 2012 are $6400830, %23 compared with pledges spent during 2012, yet referred from past years, with a total of $21497556.49, %77 being unsettled. Checking these facts shows that no legal action taken by MOM to oblige affiliating units to settle pending credits, though the CAMA repeatedly notified about the matter, violating law no 8, 1990, 241-242 articles as these pending pledges increase. A $12562250.34 remains accumulative without the MOM's taking required action though these units are financially and admin. independent, and should not have been granted such amounts. The CAMA recommends not to delay any unsettled newly processed pledges to these units, and to force them to settle previous debts to comply with relevant law. The specialists opened in 2012, a special account for Seismology Center SC previously attached to Geological Survey Ass. Account GSAA, causing the SC balance to be unknown. Though special account is opened, amounts offered in 2012 to SC were listed in GSAA. Opening balance of GSA includes $65175, against subscription in seismology satellites, remains unsettled till end of 2011, as a contract of revenue to satellite stations obliges the subscriber to a three year payment. A $89262 is listed, as per invoice no 580, in GSAA without separating the sum paid to SC and putting it in the special open account, which reflects unreal accounts.
32
A great deal of carelessness and absence of supervision is indicated by the fact that accounting registers are full errors as a result of false listing and entering of finance operations throughout 2012. A $250000, invoice no 234, dated April 29, 2012, spent against support by MOM for Mareb-based Assaleh Institute operational budget. Observations to this amount is as follows: A letter signed by the dean, public manager of Petroleum and Minerals Training Centre PMTC, was presented to MOM Minister to ask for an operational budget for Assaleh Institute, without indicating kind of bilateral relationship and knowing about excuses for such a budget. The MOM spent 50% of the total annual budget presented by the institute, which was registered as a pledge on PMTC without any action to verify such a budget or a possible repeated spent amounts. MOM spent $5432461, equivalent to 1167979115 YR. against monthly incentive approved for affiliating units. The MOM asked for spending such an incentive from its private account without being able to cope with it. The CAMA did not stand on any documents that confirm employment identity of the beneficiaries though it unsuccessfully petitioned about the matter. Credit Accounts The expenses made throughout 2012 reach $126.364. 613.2. More details in the following table: Accoun t Move to 2013 payable Rec eiva ble 2012 Account payabl e 187981 Receiv able 2011Cycle payab le 2922 Receiv able
Tax Authori ty Ministr y of Finance Oil & Gas Public Corp. Securit y Auth. Statistic Editoria l Benefit Allocati ons
33
190902
138697
13869 7 4022
4022
945336 1321 2 1137071 6
108687 73
100035 01 21750
80065 8538
206250 0
221634
95298 50
Total
1264967 4
1321 2
131192 54
102468 85
97640 98
Land Benefit Allocations (Liquefied Natural Gas Project, LNGP) Total of this expense for 2012 is $221634 against such a LNGP benefit from lands, and paid to Land Public Ass. Checking spending invoice shows the following: - The exploited piece of land is 20000000 square km, whose total rental is 194 YR per skm. The pipeline occupy 5946000 skm with an estimated 121 YR per skm and a total of $221634 as a benefit from the land, and priced as 21375 Rial/ dollar. - Though no attachments that prove receiving of such amount are available. - The natural gas co. transferred $2062000 to MOM account in Central Bank of Yemen. Remaining of this amount, $1840366, is not touched upon. - Security Protection Total revenues from Oil and Gas Co.'s against security services during 2012 are $2203506, of which $2175607 i.e. 99% was spent and the remaining was transferred to 2013. Details as follows: Account 2011 Cycle paya ble Marine protectio n, Dhaba Port Safer Co. Security protectio n, mid region Security protectio n, eastern region Security protectio n, allocatio ns, Calvally, 27th Armored Division Crude Oil Transport ing for
34
2012 accounts payab le 30000 0 Receiva ble 300000 -
Receiva ble
Transferred to 2013 paya Receiva ble ble
2546 7 58
30600 0
2546 7 58
306000
13093 80
130938 0
558
24906 3
243483
2231 9
2546 8
39063
16744
5336 7
Calvally 27th Marine protectio n, Dhaba Port Total
22o35 06 2546 7 30000 0
217560 7 300000
2546 7 2546 7
Observations to 2012 crediting and debiting for such amounts as follows: - No attachments are provided, with daily entering vouchers. - Lots of errors are made when entering data i.e. entry No 600 dated Oct 14, 2012, with a sum of $85654020, transferred to gen. register as $862121.60, with a $558140 difference. - Spent taxes due against safeguarding is not deducted, which violates article no 23 of financial law no 8 for 1990 . The unsettled due tax totals $326341 for the same year. - Lots of daily vouchers are not endorsed by Financial and Accounting Managers. - Though the specialists are asked to provide securing contracts signed between the gov. and oil Co.'s so as to know actual due amounts, they do not abide by this, hence the MOM is held responsible for any potential faults. Statistical Bulletin Accompanied by some violations, total expenses against printing 2010 bulletin for fiscal year 2012 are $21750, as follows: - No biding was actually made, rather the task was directly assigned with Art Printing without a price offer demand . - No attachments for supporting such spending (memo of an entrust, supply for storing voucher etc.) are available. Pledges Account The pledges recorded for 2012 are $2104109.90. The settled is $145248 while $1958861.90 remains till Dec, 31, 2012, pending. Cycled pledge balance for past years rises to $1783955.45,, as the MOM settled only $65207, with 3,6% from cycled balance. $171874845 was transferred to year to come (2013). - Outgoing pledges for 2012 reviewed are $320154.45. Only $80041 (25%) was settled, the remaining transferred being $240113.45. - Opening balance of cycled 2011 pledges are $1783955.45, compared with $1958861.90 cycled for 2013, an increase of $174906.45, (9.8%) for past years, which indicates the fact that MOM takes no legal action to demand settling such pledges given to them, with attached documents. - Most significant violations committed during the pledges spending include lack of attachments required for checking that the amounts were spent as per set purposes, temporary credits either of an unlawful range or for non-urgent purposes were made, lots of unsettled pledges accumulate from a year to another, correct
35
mechanisms for settlements are not properly adopted, and Amid-East $560655.14 is still pending. - A total of $40819 was offered as pledge in invoice no 479.59.23 to MOM Treasurer, which manifests following observations: - The pledges to the treasurer continue to be made without processing past cycled pledges. - The settling is made in accordance to supplied lists, without identifying data on previously offered pledges. A $16833 from this pledge was settled as per entry no (4) dated Jan 1,2012 against sundries by Defense Assist. committee on Baba case, as settlement included an unlawful spending $7766 as reward for a number of employees of Gen. Dept. for Oil Accounting. A table no (1) shows collected institutional grants, 2012
Co Kuwait Energy M.O.V D.N.O Canadian Nexen Dove Energy Occidental Petroleum D.N.O Calvally C.C.C Total Yemen Sinopec D.N.O D.N.O O.M.V Oil Search Medas Oil & Gas Sinopec Oil Search Occidental Petroleum Reliance Exploration & Production Reliance Exploration & Production Korean Oil Co. Gujarat (GSPC) Gujarat Gujarat (GSPC). O.M.V Medico Co. Medico Co. Bloc, no. 49 S2 32 51 53 S1 43 9 33 70 69 72 47 2 3 68 1 7 75 37 Amount (dollar) 100000 100000 200000 150000 100000 150000 150000 150000 100000 100000 100000 100000 150000 100000 100000 200000 100000 100000 50000 100000 Notes
2011 plus 2013 grants
34
100000
4 28 57 19 29 82 83
150000 200000 175000 200000 150000 300000 600000
36
YLG, Co. Total
200000 4625000
Table no (2) shows collected training grants for 2012:

Co Nexen Petromasila Kuwait Energy O.M.V co. O.M.V co. Canadian Nexen Dove Energy Occidental petroleum D.N.O Calvally C.C.C C.C.C Total Yemen Sinopec Sinopec D.N.O Safer D.N.O O.M.V Oil Search Medas for Oil & Gas Sinopec Oil Search Occidental Petroleum Reliance Exploration and Production Reliance Exploration and Production Korean Oil Co. Gujarat (GSPC) Gujarat (GSPC) Gujarat (GSPC) O.M.V Medco Medco total Bloc, no. 14 49 S2 32 51 53 S1 43 9 33 45 70 69 71 72 18 47 2 3 68 1 7 75 37 Amount (dollar) 50000 100000 100000 200000 150000 100000 150000 150000 150000 100000 100000 100000 200000 100000 100000 100000 150000 100000 100000 200000 100000 125000 100000 100000 Notes
34
100000
4 28 57 19 29 82 83
150000 150000 120000 160000 100000 400000 399875 4704875
2011 & 2012 grants 2011 & 2012 grants
Table no (3) shows collected social development grants for 2012:

Co Kuwait Energy O.M.V Canadian Nexen Dove Energy Occidental Bloc, no. 49 S2 51 53 S1 Amount (dollar) 100000 100000 150000 100000 150000 Notes 2011 grants
37
Petroleum D.N.O Calvally C.C.C C.C.C Sinopec Sinopec D.N.O Safer Co. D.N.O O.M.V Oil Search Medas Oil and Gas Sinopec Oil Search Occidental Petroleum Reliance Exploration and Production Reliance Exploration and Production Gujarat (GSPC) Gujarat (GSPC) Gujarat (GSPC) O.M.V Medco Medco YLG co. Total
43 9 33 45 69 71 72 18 47 2 3 68 1 7 75 37
200000 150000 100000 100000 200000 50000 100000 100000 150000 100000 100000 200000 100000 100000 100000 200000
2011 &2012 Grants 2011 Grants
34
200000
28 57 19 29 82 83 600000
250000 250000 250000 200000 400000 800000 5600000
2011 &2012 grants
A table no (4) shows collected research and development grants, 2012

Co O.M.V Oil Search Oil Search Occidental Petroleum Reliance Exploration & Production Reliance Exploration & Production Gujarat (GSPC) Gujarat (GSPC) Gujarat (GSPC) O.M.V Medco Medco Total Bloc no. 2 3 7 75 37 Amount in dollar 50000 50000 100000 50000 60000 Notes
34
60000
28 57 19 29 82 83
60000 55000 60000 50000 100000 200000 895000
Table no (5) shows collected grants for bank information development, 2012:
38
Co. Oil Search Occidental Petroleum Reliance Exp. And Production Reliance Exp. And Production Gujarat (GSPC) Gujarat (GSPC) Gujarat (GSPC) O.M.V Medco Medco Total
Bloc no. 7 75 37 34 28 57 19 29 82 83
Amount in dollar 100000 50000 60000 60000 55000 55000 55000 50000 100000 200000 735000
Notes
2011 & 2012 grants
Table no (6) shows uses of institutional support, 2012

Amount in dollar 1423966.72 7150 5726328.47 6281827.06 961479.85 3736053.29 161436.49 16850 164061 19492.99 37378.61 233800 141506 10506 169355.32 19.091.191.80 Descriptive Account External Consulting service Local consulting service MOM branches budget MOM affiliating units (actual expenses) Oil Co.'s expenses auditing services Rewards Assistance Contracting wages and salaries Travel allowance for external conferences Contributions & donations Adverts. Equipment & tools Travel tickets Third oil and gas conf. Other expenses Total
Table no (7) shows spend invoices settled by MOM for Clyde Co.
Entry No 62 66 67 71 94 109 110 Date Feb 8, 2012 Feb 13, 2012 Feb 13, 2012 Feb 14, 2012 Feb 29, 2012 March 7, 2012 March 7, 2012 Amount 1354.28 269.03 3062.88 2865.46 2355.17 2545,04 1933.34 Description Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co.
39
257 271 332 369 370 432 518 544
May 26, 2012 May 28, 2012 June 27, 2012 Aug 7, 2012 Aug 7, 2012 July 4,2012 Sep 23,2012 Oct 15,2012
2036.34 2291.35 930.76 1091.82 984.96 3464.92 8144.46 1364.46 34694.27
Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co.(commercial revenues tax) Total of tax settled by MOM on behalf of Clyde co.(commercial revenues tax) Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total of tax settled by MOM on behalf of Clyde co. Total
Table no (8) shows pledge movement for 2012.

Name Feb 1, 2012 balance 5430 307937.88 19908 61800 11440 54250 105319.26 2012 pledges Total Total settled pledges Dec 31, 2012 5430 307937.88 19908 61800 11440 54250 105319.26
Mohamed Saleh Alazani Amid-East. Amid-East. Computers Amid-East. Amid-East. Replacement Amid-East. Sadeq Ashami Amid-East. Short-term courses Jamal Ashwafi Mohamed Almutareb Aref Muharam Mohamed Ali Matash Abdula Almakhadhi & colleague Fuad Hamieed Mohamed Dhahbol & Nasr Qahtan Mohamed Sharaf Ibrahim Abu luhum Mohamed Salem
5430 307937.88 19908 61800 11440 54250 105319.26
120 460 130400 117 10630 31590
120 460 161990 117 10630
120 460 161990 117 10630
310649 7938
40819
351468 7938
60726
290742 7938
54 8250 3060
54 8250 3060
54 8250 3060
40
Alkutaini Nabeha Alwan Abdul qader Alhasani Husain Alosta and others Abdulbaset Alhuraibi Luai Khalid Ismail Abdulasis Anaqeeb Abdulla Alqashabi Wail Abdu Burgi Khaled Hasa'a Najeeb Almathani Saeed Banaja Hadramout the Valley MOM Mareb branch MOM branch. Hadramout. The coast Ahmed Ali Bahaj Salem Bafiadh Omal khair Ali Mohamed Saleh Hamoud Dares Salah Aladimi Abdulla Hamoud Hashim Ahmed Muqbil Ameer Alaidarous. A former minister Consulting Firm Khalid Alzandani Mohamed Mohsen Annagar Clyde Aredha Abdulla Obaid Abdu Abdullah Ashadili
3060 2565.54 9120 3060 10000 1013 2485 14367.25 1530 540.01 4478.77 162460 3975 13544.78 7578 3836
3060 2565.54 9120 3060 10000 1013 2485 14367.25 1530 540.01 4478.77 162460 11553 17380.78
3060 2565.54 9120 3060 10000 1013 2485 14367.25 1530 540.01 4478.77 162460 11553 17380.78
2518 12514.11 2582 2137 3971 2273 3000
2518 12514.11 2582 2137 3971 2273 3000
2518 12514.11 2582 2137 3971 2273 3000
5000
5000
5000
17000 4075 711
17000 4075 711
17000 4075 711
400000 2138.50
125466
525466 2138.50
525466.45 2138.50
5000
5000
5000
41
Deputy Minister. Abdulmalik Alama Mujahed Afufi Abdul Qawi Alalbani and colleagues Mustafa Asarori Ghalib Meali & Abdullah Shahem Higher Transparency Council Mohamed Mohsen Gizalan D. Mohamed Saleh Mahra Branch Shabwa Branch Gas affairs Shabwa office Mohamed Abdula Bajash Majed Almamri Nasr Alhumaidi Amer Mohamed Bisher Mohamed Alasri Mohamed Abdulrahman and colleagues Hamdi and colleagues Abdullah Asimah Majed Asharafi Aref Asarmi Mohamed Khalid Ali Abdul-Aziz Alomaisi Hisham Sharaf. Former minister Nada Aman
7000
1075
8075
8075
2000 3500
2000 3500
2000 3500
3000 2870 649
3000 3519
3000 3519
16322.35
16322.35
16322.35
2317
1980
4297
4298
2667 455 2717 1687 6159
2667 455 2717 1687 6159 6159
2667 455 2717 1687
379 9356 1425
379 9356 1425 9356
379
1425
1600 8100
1600 8100 8100
1600
13140 3175 4000 2250 4773 7920 2000
13140 3175 4000 2250 4773 7920 2000
10500 3175 4000
2640
2250 4773 7920 2000
12000
12000
12000
42
Ali Abdul Khaliq Mohamed Ghaleb and colleagues Mohamed Anagar & Hani Aqaba Abdulsalam Baabud Ali Ali Aqaba Samir Shail and colleagues Total
2475 4950
2475 4950
2475 4950
4274
4274
4274
5187 2137 12887 1783955.45 320154
5187 2137 12887 2104109.90
5187 2137 12887 145248 1958861.90
Analyzing some invoices on MOM incentives, the committee observed a sample of manipulation and overspending under a variety of excuses overwhelmed by corruption and organized wasting of resources, as most beneficiaries are repeated in more than a payroll , especially Hisham Sharaf, the former minister, his deputy Ahmed Abdulah Dares (current minister), former undersecretary Abdulmalik Alama, Finance Affairs Gen. Manager Abdulla Naji Assima, Oil Accounts Gen. Manager, Saeed Ashamaci , Oil Affairs Gen. Manager, Nada Aman, Accounting Manager Rajeh Zuraiqi, director gen.'s, among several others. Among these documents an issue voucher petitioned to Finance Affairs Director. Gen. on an endorsed incentive of $6720 to 8 people including the minister, without touch upon excuses, a list of 1,080.000 as a reward for 18 people, also the minister included. A third one covers 15, with 200.000 YR list on finalizing supplies, installation, and operation of power generator. Fourth encapsulates 30 people, began by the minister, who received $5000, in a list on review oil revenues. Fifth, 13 including the minister's 84000 against a transport allowance. Among other invoices also a list addressed by Public Relations Manager to Minister, over participants in an environment-related workshop. The minister's share is $1800, and a paying list referred to Minister by Oil Ex. Assoc. including $3000 for his favor, an 18 people's reward, with Minister's $3500 for a committee on annulment of a Chinese co. that demanded the state to pay fines due to a delayed shipping of crude oil the former bought in Feb 2012. A $1913 list topped by Minister, over a team formed to coordinate the state's allocation of crude oil, and a $75.000 transport allowance, undated invoice and with unknown aspect of spending, among several others corrupted invoices. Sampled Corruption in Aden Refineries Among questions arose what benefit of the country's oil if it imports oil derivatives with a value exceeding the exported oil to abroad , another is what advantage gained from Safer and Aden Refineries? As they are unable to meet needs of local markets, the consensus government CG role is to put an end to such corruption and to its motives no matter what are they, so as to curtail burdens on citizens who seek a positive change, including making an improvement in these refineries, and adding new similar facilities if required, to
43
reduce costs of marine and land transport and to fight oil derivatives smuggling by mafia who gain a lot as a result. Being the oldest in Yemen and the region, Aden Refinery co. had been before unification in 1990, a giant est. that refines more than 200 thousand barrels of crude oil a day. Its first production was in 1945 for the critical role the labor movement played on British colonization expulsion from the south of Yemen, so its strategic value is highly diverse. As the centralized regime produced trifle and unbalanced policy between the centre and suburbs throughout decades of hegemony, the bad scene is naturally reflected and manifested in the refinery. As Aden Refinery is entrusted with importing oil derivatives to cover local shortages, studied samples of bills of Aden refineries shipping to Hodeida reveal large deficit, esteemed at thousand liters, in quantities incoming to, and outgoing from the refinery, which indicates amount of lost spills into sea that required to be stopped to avoid cheating in supply stations and heavy burden shouldered by citizens due to failure to adopt standards criteria during purchase from Oil co. and buying to consumers. Are office holders wary of such a defunct government in an unbearable conditions, which only serve the influential people, smugglers and sea transport co.'s? Oil Corrupted Bargain A one billion and two hundred millions dollars bargain was signed by Aden Refinery including buy bills a million and 200,000 tons of diesel and passed by the CG headed by Sakher Alwagih, Finance Minister without abiding by standards, in favor of Russian national ARAB REG Company FZE whose represented by an influential figure favored by Finance Minister. The purchase contract was endorsed to be annulled by Higher Tender Supervising Board, confirming in a press release the contradiction to tendering rules. Fourth. Natural Resources Wasting 1- Trillions of calories of urgently needed associating gas is being burnt, as nearly 90 to 130 million cubic feet daily wasted amid lot of silence by MOM responsible figures, rather than an adopted integration of production as per a mechanism to organize benefitting from such burnt gas. Burnt gas in Oil Blocs for 2012
Bloc Annual Total (in thousands Cubic Feet, CF) 1,825,816 887,581 33,817 Monthly Average (thou. CF Daily Average (thou. CF) 5,002 2,432 93 Average Expected Produced Energy. MW.h 19.03 9.25 0.35 Burnt Percentages Expected Pr. &
Masila, Bloc 14 Mareb Bloc 18 Bloc 5, Gana
152,151 73,965 2,818
6.3 3.1 0.1
44
Eastern Shabwa Bloc 10 Bloc 32, Hawarem Bloc 53, Eastern Sar Bloc s1, Damas East Alhagr bloc 51 Hawarim bloc 43 Malic, bloc 9 Oqla bloc s2 Bloc 4 Iad Total 2012
20,653,288 33,578 544,349 32,579 0 1,118,787 781,744 2,779,500 168,624 28,859,663
1,721,107 2,798 45,362 2,715 93,232 65,145 231,625 14,052 2,404,972
56,584 92 1,491 89 3,065 2,142 7,615 462 79,068
215.27 0.35 5.67 0.34 11.66 8.15 28.97 1.76 300.81
71.6 0.1 1.9 0.1 0.0 3.9 2.7 9.6 0.6 100.0
These figures show that burnt material in 2012 is 300 megawatt/ h. of electric power, an annually 2.628 Giga. 71.6% can possibly be produced from Bloc 10, in which 56.6 million CF a day, equivalent to 215.7 megawatt/h, 1889 gigawatt a year. 2- Bloc 18 liquids productivity of (crude oil and condensates) Several documents and reports disclosed for media outlets on wasting gas and oil wealth, that can be summed as follows: Increase of gas pumping to Belhaf effect on producing liquids (crude oil) and king gas and capacitors in Bloc 18, as in following table:
Supplied Gas Scenarios YLNG Ministry of Power, Million million tons a CF year 5.3 6.7 7.8 9.0 100 100 100 100
Total million CF a day 885 1058 1213 1383
Lost Hydrocarbon Oil Cooking gas million barrels million barrels 68.5 68.5 68.5 68.6
Capacitors million barrels
Cash Value of losses (million dollars) Oil Capacitors Cooking 100 100 dollar gas 60 d dollar
Esteemed total
44.1 49.1 53.6 59.0
3.24 3.24 3.24 3.25
4410 4910 5360 5900
324 324 324 325
4110 4108 4109 4115
8844 9342 9793 10339
Thus, expected loss of bloc 18 due to decreased production and loss of liquefied crude oil, cooking gas and condensate as a result of feedstock delivery to Belhaf, causing the bloc to lose its ability to produce crude oil (due to low pressure of reservoir, and to cooking gas non-extraction from natural gas feedstock). Minimum loss of Yemen in terms of Bloc 18 production is 8.8 billion dollars throughout lifetime of the project. Collected data show that bad mechanisms for extracting propane and butane cause heavy wasting of urgently needed oil wealth. Extraction competency for propane and butane constituents in Safer Co. Units
45
Extracted Constituents propane butane
Asadel Kamil. Units Competency 55% 85%
Central Processing Unit Competency 65% 90%
Web site data indicate an evolve of supply and demand in US market over past 10 years for information empowering existing or incoming government to stand on solid ground of negotiating with Total Co. and SWIS with which contracting was signed involving producing two third quantity of the liquefied gas project. As 2004-2007 was "the start of sophisticated oil production leap" for U.S, especially shale gas , which implies that such a jump had started within 8 to 10 years earlier than 2005, the period associated with improving leaning drilling, as the table shows:
As exploration usually take 4 to 6 years, with results are decided through 4 to 5 years, US would surely boycott great deal of imported gas in the near future before 2014.however, it is not likely that Total, being the most leading petroleum industry in the world ignores such facts about US oil market and future prospects on traditional and non-traditional natural gas supply, as it is operating all over the world. President's Instruction to Increase Natural Gas Production & Pumping to Belhaf In Jan 12,2014 President Abdrabo Hadi ordered a million ton of LNG produced by Yemen Oil Liquefied Gas Co. YOILG be exported to Belhaf, with its crude being supplied from Safer co. with purpose with support the budget and contribute to
46
financial provision, confirming the country's need to oil and gas resources for development. Though these orders, if they mean delivery of more than 6.7 million tons annually, great adverse effects would likely inflict oil production from the same bloc, and remaining reserve of electric power, as per studies conducted by Safer, noting that daily NG draw increase would lead to great decline of reservoir pressure of productive oilfields (oil plus associated gas) especially that of AlV, and an increased gas production would damage them. The decision would be reasonable if extra 1.4 million tons a year or partial of it was allocated in favor of the State, as stated above. Yet who can stop such wasting if not the NCG, MOM, Gas Affairs and Oil E&P authority.
Associated Violations to LNG Selling Contracts: Several committees especially that of marketing chaired by Total have deliberately presented distorted information, including the following: 1- Yemenis still have 5.9 trillion CF of NG that can be directly used on demand. This statement is erroneous, which obstruct spread of a hoped pipeline among Mareb, Ma'aber, Hodeida, Aden and Mokha to solve energy problem in Yemen. 2- Gas selling tenders with their 3 contracts were masterly processed, as no statements on NG supply and demand expectation are provided, claiming results of bidding are the most suitable for the country. 3- Two third of liquefied gas is sold to US market which tends to be sufficient with shale gas. 4- The gas development 99-2005 agreement was extended towards an agreement of selling reached in 2005 as desired by the most significant partner Total whose conditional was to focus on US market and Hinry Hop index. 5- In the meantime the project completes second stage of construction to third (commercial operation and exporting) negotiation resumed that ended up in signing a deal to empowering Total to financial benefits i.e. transferred cargo sales, which confirms a previous intention to redirect the cargo as per new negotiation in which Total and French national SWISS would have lion's share. 6- In an unveiled premeditated intent to monopoly all bloc 18 gas material, YGC applied for extending Belhaf capacity from 5.3 to 6.7 million tons a year, while YGC completed in 1999 preliminary designs based on 6.2 million tons a year, confirming, in the 3-page letter, the US market demand on LG would increase, however, absolutely not a letter on supply was included in it. 7- The YLGC and its partners commit crime against Yemen and its people. 8- In an excuse to enhance its capacity, the YLGC alleged that its objectives was to reduce capital cost required to produce a single unit of the product, while de facto cost exceeds the supplied and approved 80% budget, compared with that submitted to the board 2005. Failed Bloc Admin. and Suspected Bargain
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Throughout the oil world countries, oil producing fields are delivered to the state, and they are managed by national co.s. Though this procedure takes place in Yemen a looming crime seems to be planned via a secret bargain of providing the 14 and 18 Blocs to Total; the company with desire to gain full control over gas and oil, along with assistants in and outside of MOM. Fifth. Corrupted Sub-contractors (Oil Service & Security Co.) Most oil companies operating in Yemen, if not all, are facilitated by a Yemeni mediator, who is either a representative or sheikh or a military leader, under pretext of providing protection, service and required licenses for companies, as a result of the influential people monopoly on power and wealth. Such a procedures cause pressure on investors and convince them that insecurity does exist, and great loss accordingly ensue from increased operation cost, for about 50% of produced oil is charged as cost oil, which is stated by House of Representatives' recent reports for Jan 6, 2014 and other reports. Following are some of well-known protection companies belonging to existing or previous influential people or sheikhs: Muhsen Ali Muhsen Alahmer's Dhakwan Co. Yahya Saleh Alahmer's Medas Co. Hayel Saeed's Middle East. Oil service company own by Haithm Alaini a Chines Geco, by Abdul Hafez Alalimi
Shabab Press news site revealed Thursday that " private sources disclosed a list of senior influential names involved in illegal representation with global operators, to loot and consume oil resources in Yemen". The list shows former regime elements and social notables being involved, as follows: former president Ali Saleh, Oil & Gas Yemen Co. Oil & Gas Investing Yemen Co., and a partnership with Total. Hameed Alahmer's Petromasila., CCC and he holds ownership of Arcadia and Al-Humran Sheikh Husain Al-Ahmer; Occidental and the Canadian OXY Sheikh Mohamed Naji Ashaif; the Korean KNOC and Daewoo Gen. Ali Muhsen ; owner of Dhaqwan Oil Service Co., agent for Oil Search, Australia, Chinese Sinopec; BGB and Egyptian Petroleum Yahiya Mohamed Abdulla Saleh; owner of Almaz for oil service, Total E&P, Abidis, CGG, and NFI Ibrahim Abuluhom's Trafigura Nabeel Hail Saeed, representative of Calvally, Hood and the Indian Reliance, Russian Integra, Safer E & P and Yemen Petroleum Husain Ahmed Alhuthaily; partner of Muhsen Ali Musen in crude oil transporting co. He is a contributor to Calvally, Nexen and Dove agencies. Shahir Abdulhaq, representative of DNO and Dove.
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Husain Ahashidi, owner of oil wells drilling co. Abdul Aziz Almikhlafi, partner to Tawfiq Saleh in Schlumberger. Haithm Alaini, owner of Griffin oil co. Mohamed and Abdul hafez Rashad Al-alimi. Representative of Geco Chinese. Abdulla Alakhram Alhashidi, a representative to Hunt and owner of Alkawn Contractual Guarding Co. in partnership with Ghalib Alqamsh sons. Tawfiq Saleh Abdullah, representative to Schlumberger. Abdulla Alkharaz's Intrax Middle East. Ahmed Shaif Harml, Director Gen. of State-run Y. com, and representative of Kwit Energy operator of bloc 5 and Gulf Energy Jalal Abdurabo Hadi, represented Total in some blocs recently awarded to it, in addition to Brume Gas, Russia Most of Yemen-based Oil Co. reside in buildings rented by civilian and military leaders which violates oil companies valid acts all over the oil producing world countries. As parent oil co.'s should have buildings included in assets that return to the state once partnership contracts become ineffective, a procedure that would help save lots of expenses and influential people's cost oil. The question arose here "where are the infrastructural equipment of departed oil co.s go to? Crude Oil Selling Contracts Monopolized by 2-3 Influential Co.'s Global Arcadia, represented by Hameed Abdulla Alahner, controlled purchase and marketing of about a half of Yemen oil production during 1994- 2009. Other co.'s represented by influential Sheikhs such as Trafigura, Ashaif's Sinopec, are being involved, and an influence-based selling to and purchasing of Yemen oil is adopted through non-transparent and dubious mechanisms. Sixth. Structural and institutional imbalances 1- institutional violations MOM suffers from real organizational mismatches and interrelated and intersected duties and responsibilities. There is no components of good governance and effective institutionalism and monitoring which provides a widely opened entrance into corruption, wasting resources. In fact, the oil sector can never recover good health without an inclusive and urgently needed restructuring and solutions, in light with National Dialogue outputs, especially relating to good governance. 2- Legal violations Legislative vacuum is considered as a major obstruction to MOM work represented by absence of an organizational provision, especially in investment issues (exploration, production, development, refining, transporting, storing, marketing, human dev., remunerating and wages, jobbing rotation, wealth key resources exploiting, and relation between State and MOM), society and local power from a hand, and between them and the central government from another one, in term of their tasks, duties and rights.
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3 senior legal experts who caused heavy loss to the public treasury, were referred to Public Prosecution MOM , which only occurred flowing a visit paid to MOM headquarters by ND's team of good governance. MOM and oil and gas co.'s opt to contract with legal specialists from outside the MOM for long years though legal affairs departments exist. Contracting is made against high payments, in accordance with procedures of either nepotism or good offices so as to practice corruption away from affiliating legal dept., corp.'s. Upon visiting the MOM by NDC's good governance team, they made following notes: In addition to the major challenges of organizational structuring and legal violations, an attempt to extend production sharing of Safer, bloc 18, in 2004 with Hunt, for which no document on objection to such extension is found. The issue on an attempt to sell Yemen's share of Bloc 53, which was stopped by House of Representative after selling was made to Alhusaini and Alabar against 14 million dollar, who was recompensed, was not investigated. New Daba and Ras Issa-based draft projects were frozen due to various reasons. Hugaif oil est.'s located in Jabel Hadid district of Aden were rented to Tawfiq Abdulrahim Co. as per a 50-year contract against $450 thousand dollar. This question forced the government to lose 400 million dollar due to tenant's rejection to deliver the est. referred to. Agreement on production sharing with DNO, bloc 32 was annulled, as loss exceeds 500 thousand dollar as per documents. Contract with Calvally, bloc 9 includes violation of manipulating fake names and allocations at expense of loss of rights of MOM and the State. Members of the DC team on good governance recommended the president Hadi, the Gov., Public Prosecution and MOM on the following: The individual responsible on these violations be stopped and brought into justice. Annulling or overhauling all agreements of unfairness to the country, as it a governmental restructuring is taking place. Units Affiliating to MOM Oil Exp. & Production Association First of all the name is not really applicable to the authority, as it neither explores nor produces oil rather its tasks are limited to decorative supervision on the two processes, participate in making technical decisions and along with operating co.'s., as 70% of the approved budget go to cover wages and salaries in a corrupted admin. 1- Data Banking Project An agreement was signed between Schlumberger ( leading oilfield Co.) and Oil Authority to construct an oil data bank project, a contract than remain mysterious, as follows
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a) No financial regulations for the project is available, and no one know how revenues of data selling are processed. b) Some co.s' are illegally charged against information delivered to the project, with whereabouts of these amounts is anonymous. c) Several cases on Yemen filed years ago by Schlumberger to American prosecution, are not being investigated by Yemen Gov. d) Financial amounts that may rose up $100000 a month are illegally imposed, some under title of supervising committee on project. e) Due to bad exercises by some responsible figures, Public Treasury is prevented from hundreds of millions of dollars, on an annual basis. f) A part of corrupt act lies in some officials renting of their private cars to oil companies. 2- Joint-operations Mutual production contracts involving MOM and foreign oil companies stipulate an associated company be established to operate, on a fifty-fifty basis, yet existing reality contradicts all contracts, and the state loses a lot of rights and privileges , especially on context of employment and production cost reduction. As priority of oil work is that all infrastructural requirements; lines of assembly, processing and storing equipment should be ready before undertaking production and operation, though crude oil is still being transported by trucks that belong to influential people. 3- Oil Tendering Methods of bidding disclose tangible corruption, as it is monopolized by companies that belong to the above mentioned influential people, tenders are passed without being advertised as per relevant law of bid and outbids, leading to a million dollar bid is charged a tenfold more. 4- Social Development In light with signed agreements, amounts of a total of millions of dollars are annually allocated for social development. This item tangibly improved as its amount are used to implement projects in some districts. 5- Computer Network A computer network is installed against more than 60 million dollars in a leased asset. Given current atmosphere there is no need to such installation, and an extra amount of more than 15 million YR or even more was approved, in a dubious transaction involving the oil E & P Assoc. officials, as a facilitation is an implicit meaning. Other violations Installments of employees' salaries are deducted A 5 million dollar was spent on a drilling tool that is out of function for 26 days. Cars spending as per principle of bribing.
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Recruiting consulting teams based on loyalty, in contrary to contracts, which stipulate that a joint national co. be established after production exploring" a matter that never happened, and continuing such illegal recruitment help corruptors to manipulate tenders, to ensure an awarding to desired companies, rather than official tendering. Several amounts in hundred millions are yearly spent under item of institutional support, which remain anonymous. Some exploration co.'s have been contracted for 17 years within stage of exploring in violation to law.
11- Corruption on Drilling This aspect is among the most significant corruption in oil sector, due to its costs and various technologies and uses, and to miscellaneous tasks that the contractors are involve in, starting from road paving and field preparing and drilling liquids, well measurement cos.' directional drilling, cementing, lining and tubing co.'s Thus, a highly competent admin., expertise and supervising capabilities are required for operations, making drilling item a most significant among annual budget. Unless minimum required competent and specialized work teams, highly appreciated and supported with suitable work place, its tasks would never succeed properly, and corrupted milieu would remain forever. Major corrupted acts in this aspect can be summed as follows: 1- MOM has no a single drilling equipment, apart from a Yemen petroleum co. though some employers (private ones) i.e Alhashidi, have several drillings. 2- Old and rickety equipment that cause hundreds of millions of oil cost to lose, is allowed to operate in Yemen. 3- Qualities and quantities of imported equipment that are used by drilling co.'s are not accurately monitored. Only arbitrary samples of invoices submitted along with financial, local and world price lists are inspected under absence of qualitative and quantitative standards of assessment. Foreign companies take advantage of such situation by make a double load on drilling entries with associate activities, especially as all contractors belong to lobby of corruption against which Youth uprising erupted unabated. Such cost are deducted from Oil of Cost as a produced barrel in most companies costs one third and a half of its value in global market, in other word, one third and half of oil production go as costs of higher percentage production (a quarter of grand costs). 4- Lots of mistakes are committed in drilling operations, due to lack of strict surveillance and to absence of coordination with oil E & P Assoc.., as drilling takes place before taking its permission, then data are often sent to the Assoc. 5- Drilling supervisors are often ill-trained. 6- No database on drilling operations and costs is available. 7- Drilling programs are unilaterally prepared by foreign co. and the Yemen Association has only to accept.
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8- No database on increasing drilling costs for each reservoir compared with relevant costs in neighboring countries. 9- The responsible figures in industry disregard several deliberate violations and (human mistakes) committed by companies. 10- Due to arbitrary and unstudied drilling operations, the production becomes little in relation to number of drillings. 11- Double standards in supervising and influence of political decision based on interests, which makes corruption more intense as a result of an influenced technical decision. 12- Roads are not paved with asphalt, rather remain dusty, and repaving them costs a lot. 13- The costs prepared by the association specialists are disregarded by its leadership, to adopt the company suggestions which are usually double costs, which happens within corrupted bargains.
Information-related Imbalances As information accessibility is key to scientific and thought production, for which great efforts are exerted and millions are spent toward gaining it. Data preserving is deemed as a waste of such money. Taking this into account, no mechanism is appropriately followed in this sector, to tackle and store information, and to guard against being leaked or unlawfully sold. The disclosure forms are not complete, especially by MOM oil accounts admin, and no strictly followed system to control quality and accuracy of data received from foreign companies operating in Yemen, on basis of sophisticated modern techniques. The cadre that can undertake such a big assignment is not qualified, and no computer-based intra-network inside the MOM headquarters nor an interministerial is available. Observations to Oil Blocs Though multiple global leading employers apply for the competitive bids offered, they do not worthwhile success, causing them to abandon such a boring comedy, and only specific companies gain opportunity, including the following: a) Total, French This is an operator of bloc no 10, in which millions of calories f associate gas was lost throughout period of production, without neither a feeling responsibility toward the environment and surrounding, nor accountability by concerned bodies. It became a participant in bloc no 5after being operator of exploring phase. It is a participant with Chinese company in bloc no 71 Purchased bloc no 3 from Oil Search without the commercial notice being declared till now. Purchased bloc no 70 from Korean co. Received bloc no 69 without competition, among 3 DNO and OMV, which pose a question in itself. b- Norwegian DNO
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Operator of Bloc 32, though share of Ensign (Shahir Abdulhaq Co.) is the biggest, as its ownership was transferred to Ensign after being relinquished by Clyde. Operator of Bloc 43 granted to First Calgari which, in turn, abandoned 90% of it to Ocean Energy, then to DNO which sold a portion of its to Oil Search which, in turn, sold it to Kuwait Energy besides 5 blocs. This bloc only has 2 productive oil wells, namely Nibraga 2, and Nibraga 5. Participant in Bloc 53 along with Dove. Participant in and operator of bloc 47, along with Banafea. Operator of 72 exploration bloc Won bloc 84 during a competition among 5 blocs, including this one (84) DNO has sold a big percentage of its assets; the second relinquish of its kind to Ras Alkhima, which accordingly becomes operator of sensitive blocs. c- OMV Austria Operator of Oqla-based bloc S1responsible for issue of (Intel' Oqla Airport project) Operator of exploring Bloc 2 Granted the neighboring key bloc 86, though it had been recovered from it. d- CCC World Contractor Association Operator of bloc 33, which has been in a bad situation since 2008, no one know reasons behind non-follow-up and why the association did not take any position about it. Operator of bloc 45, who is similar to the previous one, and deprived from seismic survey. Only geological data were relied upon to identify wells, which is a great fault. Participant with Kuwait Energy in Bloc 49, as it had been managing the bloc in exploration stage. According to the partnership contract "the bloc shall return to Oil Search during phase of production", rather the latter sold the bloc, among 5 ones, to Kuwait Energy. the bloc should have been in production stage, yet reasons behind delay are not known. eOil Search (Australia)
Only Bloc 7 belong to it, after it had blocs 15, 47, 35, 43, 49, 3, and 7. Though commercial exploration has been performed, its declaration has not been till now. fGallo-Oil, Indonesia
Operator of bloc 13, which has been inoperative since drilling disrupted, which indicates lack of expertise. Such a failure was recorded after it did manage to operate R2 which had been explored for long, without declaring any excuses for such extension. g- Matco (Indonesia)
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As this employer is a new one in Yemen, no reporting about it is suitable for the time being, for the seismology work. As for Calvally and Kuwait Energy, it difficult to speak about them as they have no technical capabilities. Calvally Petroleum Intel's. Canada This employer was entitled as per a license to explore and produce oil in bloc 9, based in Bani Malik of Shabwa, which shall end in Nov 3, 2001. At an estimated cost of 20 million dollar however, with the capital of such investing company does not exceed $30.000. this is door to arena of corruption and wasting of national wealth. Having signed the above contract no (326) it does not renew it, rather demanded an extension which was granted to it, to continue without a renewed license, with fake bonds, described as follows: On Sept 18, 2000 the company petitioned Ministry of Industry and Commerce to replace its branch manager by new Canadian national Nabil Nasif, to either escape its obligations and tax due for the State or to evade contract it had signed with other companies including, as per observed data, Saudi Co. Alzarka, Gas Exporting & importing Co. Manager of the Co Mr. Nasif sent a letter to Manager of Customs Authority, asking for changing the co. name (from Calvally Petro. Intel's) in to (Calvally Petro. Cyprus), though the Co is not registered in Ministry of Commerce and unauthorized to work in oil sector, which is considered as counterfeiting, as no license is supplied to so-called Calvally Petro. Cyprus. On Oct 19, 2008 the commercial register was renewed, yet the co.'s name is not complete so as to know that it indicates to the Canadian Calvally Petr. Intel'. To further verify that the above co. work is unlawful and through fake documents, these correspondence between the Ministries of Commerce and oil, and the co.'s manager stand as testimony: On Apr 7, 2009 the ministry of commerce addressed Mr. Nasif; Yemen's offshoot manager, to come to the ministry's headquarters and discuss the following: 1. Demand license renewal. 2. He amended Co.'s official printing material ( stamp and clichs ) to an unofficially licensed company, which is an indicator to counterfeiting. The notification published in Athawra daily on July 27, 2010, warning against any dealing with so-called Calvally Petro. Cyprus, noting that its unofficially licensed, though the co. kept on operating till 2013. Taking into account a proved manipulation bt Co. Manager and the attempt to bring to justice through a file by Alzarka and Alfaw on the co.'s evading from signed contracts, a direct or indirect involvement by some influential and officials of the former regime to Co. corruption and the country as a whole, is confirmed by their silence pertaining to the case, as follows: The report submitted by Prime Minister's Inspection and Legal Affairs Dept. on May 26, 2012 to Premier Mohammed Salim Basindwa involving the
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notification by Saudi Azarka on financial and admin. corruption inside State institutions with relevance to Calvally Petro. Intel' . This issue was referred to Higher National Anti-corruption Authority by Cabinet's Affairs minister. MOM approved on Apr 22, 2000 to move Calvally Petro. Intel', bloc no 9 to Calvally Petro. Cyprus Ltd. in addition to Nov 18, 2001 approval on an abandon demand in favor of so-called Calvally Petro. Cyprus Ltd that operates in Cyprus and is subject to only applicable laws there. Such abandon include 40% of Canadian Calvally Petro. Bloc 9 to all of Hood Oil and Reliance, of which 5% was approved for these two co.'s equally. This behavior violates constitution and law, as well as contract signed between MOM and the licensed Canadian Calvally Petro. Facts on Bloc 9 In a magazine issued on Sep 2010 by a headline reads as: Oil E&P authority: 2o years of Tasks and Achievements. The body tackles the following: Bloc 9, owner Operator, Calvally Canadian Bloc square is 2234 skm. Productive oilfields: 4 Start of production: Dec 2005 Current daily average of production 4,900 a day. Absent Vision and Planning It is expected that bloc no 5,10,and 53 be delivered Yemeni government by end oil production contracts sharing with foreign co.'s operating in such blocs, in 2015, however, both MOM and the Gov. have no clear-cut visions on managing these blocs which Petro-Masila and Safer competed for, despite their little experience and failure to manage blocs 18 and 14. Oil and Gas Public Corp. OGPC The corporation comprises several companies such as YOC, Gas Co. and Oil Refining Co. Though its capabilities are multiple, it did not manage to eliminate oil and gas shortages in local markets. Some of them suffer from violations and imbalances, such as: Yemen Oil & Gas Public Corp. Yemen Gas Co. Yemen Co. for Oil & Minerals Investment Yemen Refining Co. Mareb Refinery Aden Refinery Co. Petro. & Mineral Training Centre a- Yemen Co. for Oil Products Distribution It is mainly concerned with internally and externally distributing and marketing oil derivatives, and is deed as a major centre of oil-related corruption. Most of its cases are as follows:
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1- Selling diesel and benzene to black market in complicity with OGPC and MOM. 2- Implement maintenance programs to the establishments and projects and constructions against high amounts, with tasking some of the co. contracted individuals and influential, without these projects being subject to bids and outbids rules, nor an effective surveillance. Some of these projects includes Nashton and Hodeida and Mokha constructions. 3- Policy of corruptors' duty relocating through the co.'s admin. and its departments is valid and constant, along with marginalizing qualified cadres. 4- Yemen co.'s lobbies of corruption deplete its big revenues, through various administrative and financial forms. 5- Employment in the YC is judged by favoritism and financial considerations instead of principles of competency and fairness. 6- No specific ceilings to expenditure. 7- YC branch leased stations that belong to influential figures, at high costs. 8- Lack of transparency in all tasks of YC in terms of transmission and distribution. 9- Measurements of quantities of oil derivatives and sales are highly different i.e., millions liters per year, as the co. uses unprofitable methods of measuring that enable corruptors to manipulates sales and claiming them lost while they are smuggled internally and externally. 10- The environment is not healthy, as oil spill from the storage tanks into ground and water, especially during workover and cleaning without respecting safety measures. For instance Subaha est. 11- Dubious millions dollar bargains in violating to specifications, especially in diesel which caused great damage to civilian automobiles, and committees were formed during past few years, without declaring who is responsible for such bargains 12- Such mingled diesel caused some factories that use it as fuel to mal-function 13- Involved in diesel case are several parts including contractors, as is indicated by complaints and notices by station owners. i.e. Hiziz station Yemen Oil Refining company YORC An old co. brought by US Hunt to refine oil derivatives while exploring in Bloc 18 belong to OGPC. Though it is significant, no improvement or expansion occurred since that time, as the old admin. represented by corruptor Mused Assbari, and new one by Abdulkareem Shuga'a Addin despite expenses in millions of dollars throughout more than 10 years. Some documents reveal the Mareb-based refinery suffers from big challenges. The refined light sweet crude oil deceased from 10 thousand barrel to an estimated 6 thousand per day, catalyst used was sulphureted as a result to high percentage that does not match, while other say that the problem possibly caused due to purchasing a bad quality. Office employees are 130 who represent about 1-2 of the technical cadre. Closing statements of 2012 budget indicate the Co. profit surplus is YR1.536.512.251 one billion and five hundred, thirty six million, five hundred and twelve thousand, two hundred and fifty one YR. This sum, the account of OGPC which includes YOC, Oil and Gas Co., Aden Refinery and Oil Investing
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Co. shows a structural imbalance in OGPC does exist, as estimate budget for 2012 is 24.999.000.000 and the total profit surplus from OGPC is 2.186.512.251, an amount offered by Aden Refinery estimated at YR 650 million, as surplus of YORC only. Yemen Gas Company YGC YGC is of high significance for Yemeni citizens and the government, yet it, like other companies, witnesses several manipulation of gas in terms of pricing and quantities, i.e. bringing it to black market as commodity, as well as admin. encroachments. Following are some of them: a. Absence of transparency and concealing profits surplus of YGC for 2012, as the committee stood on a number of documents endorsed by all of manager of Budgeting Dept. and concluding statements, Accounting director gen., and Finance Dept. manager. These documents unveil output of activities of Hodeida, Brum Hadramout, Dhamar, Aden, Amran stations for 2012, as per comparisons which show millions of financial loss by the stations, as in following table:
2011 output profit loss Station Hodeida Brom Hadramout Dhamar Aden Amran Sa'ada 68,011,846 76.769.775 47.085.530 111.229.612 47.210.745 72.815.645
2012 output Profit loss 103.936.865 174.304.193 100.452.272 134.646.087 89.059.303 136.535.858
In an invoice, the total of local procurement (gas) in Brum Hadramout is higher than sales revenues (gas) for 2012, as per the following: Amount Local purchases (gas) Sales revenues (gas) Difference Description 613.261.376 591.985.740 21.279.636
b. No investigation was made by the YGC to inquire those involved in such lost amounts observed by a field team tasked with visiting Gader and Hatarish districts, the co.'s sites and its affiliating areas, which reported about results of documentary cycle follow-up for Jan 1, 2011, to Aug 2, 2011. Which shows the following: a- Actual deficit of exchangeable empty gas cylinders are 2.024, and actual deficiency of cylinders reach 804. Actual sales revenues deficit within the same period 1.716.590 YR.
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b- For Subaha site, the gap between the book registered cooking gas cylinders and actual balance is 3.317 cylinders which was sold through the oil co. Subahabased facilities management, without supporting documents. c- Actual total deficit for gas stores based in Sana'a belong to the co. is 414 cylinders, yet taking stock of 7 gas stores could not be made, due to being closed by the store-keepers. d- Total of differential due for the co. i.e. commissions of sales estimated at 60 YR as per latest private stations tariff in (Gader, Asalih, Sana'a) against supplying companies during 2011, is 4.832.893 YR Safer Company Safer has become a national company in 2005, after Hunt's ; former operator left contracted area. The great rebound of production witnessed by the co. s 15 thousand barrels a day, compared with previously 60 thousands bs. Despite great annual expenses, especially on drilling & development programs. Committee's observations are as follows: 1- Throughout 8 years there is no big explorations, which can decrease the relatively great decline are achieved, except for gas reserves (possible and probable in the bloc estimated at 2 trillion CF, in addition to small amounts of , oil as per company's data. 2- Safer spent, as per sources, close to $64.921.793 against the recently conducted seismic surveys in 2009-2011, as well as more than $46.589.582 against drilling about 12 exploring oil wells spent before and after the seismic surveys. This costly explorations and surveys bring no oil reserves parallel to volume od expenditure. 3- Existing imbalances pertaining to executing productive development programs and basement drilling for bloc 18. As follows 5 basement boreholes are arbitrarily made, without neither benefit from regional experiments nor enough study the nature of costly exploring of such rocks, as amount of expense in question is close to $47.952.250 4- some web sites said that an exploration was achieved in Jawf by Safer, providing no more details of intended seismic formations. The sites listed a beyond-imagined figures that the co. neither confirmed nor denied. Safer's Self-financed Strategic Projects Stood upon by the RSF's committee is a letter dated Feb 5. 2913 sent to Oil Minister Ahmed Abdulla Dares on Safer's self-financed strategic projects. The letter confirmed the lost natural gas feedstock delivered by Safer to Yemen Co. for Liquefied Gas industry is roughly 7.4 million bs, with an estimated cost of US $444 million, equivalent to fivefold costs of modernizing the 4 gas plants, as such costs are about $80 million, to be recovered within almost 18 months to 3 years if cooking gas extraction from feedstock be involved in. Given this situation, cooking gas reserves would not be sufficient for local consumption exceeding 9 years, as per the document, indicating that the more
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quantities of gas from bloc 18 of Belhaf's liquefying project is received and the more delays in gas plants upgrading, the more the loss will be. The document demanded that gas plants upgrading project be a priority for enhancing the already ill-developed plants, from 65% to of not less than 96%. Violations and Concessions to YLNG Sources indicate that existing Manager of Safer, after being appointed, held a meeting with Natural Liquefied Gas Co. in its office, astonishing Safer's officials by minutes cancelling all previously made contracts (on guarantee and compensation) annulled basing on the minutes, though big mistakes are committed by YLNG on engineering designs and first phase equipment purchase, and on Asad Alkamil construction expansion, as well as the great mistakes during second phase, such as the new plant designs and purchase of its equipment in contrary to world specifications followed in oil industries, which underlie risks to facilities and human being. Safer's new manager has signed minutes held on Sep 18, 2012 with YCFLG in which he offered Safer's concessions involving atrocities technical faults discovered while experimental running , to the newly established gas plant in Safer, as these faults were alleviated from B group; that must be solved before running, to A group, routine building finishing faults. The minutes said the experimental run was successful, which contradicts correspondence briefed on between former public manager of Safer and former oil minister Hisham Sharaf, as the test failed and delayed and attempts to alter designs are made, and a fault in the plant safety measurements all are explained in (contract of guarantee and compensation) Financial Infringement on Maintenance and Feeding Contracts Delivered bloc 18 in 2005, Safer renewed the contract with Intrax Co., as of Nov 15, 2005 to provide maintenance, feeding and construction service . As per sources received by the committee, the former admin. of Safer involved, after several years of start of contract, in dispute with Intrax due to latter non-abide by signed agreement among the two, for Safer claims that Intrax has no recorded archives on accountants, no provide documents supporting filed invoices, in addition to exercise of overstaffing, among other details that are not supplied in this translated material. In a meeting held on Oct 16, 2012 combining Safer Public Manager and Ja'afer Alkharaz, who submitted a letter to the first telling him to a credit first payment of 5 million US dollar from Intrax account and settling the case as soon as possible. Safer's manager instructed without identifying a body to approve 5 million dollars in favor of Intrax and without consulting concerned entities. In the same meeting another letter delivered to Safer's manager entitling a 3 member committee to communicate with Safer's committee to solve all pending issues. Such a behavior by Safer's public manager is unlawful and payment out of contracted provisions, according to Central Apparatus for Accountability, breaches them, for these provisions are the only source organizing the relationship and tasks among the two parties.
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Safer Illegal Amounts to Marib Mayor The committee stood on documents that show Safer's high spending to officials and influential people, such as 1.650.000 US dollar offered to Marib Mayor; Sultan Alarada through period April to Dec 2013, as follows: Date Beneficiary Amount Bank of Ref. Apr. 29, Sultan Alarada $850.000 Yemen Bank 2013 for Rec. and Dev. June 3, Sultan Alarada $100.000 Yemen Bank 2013 for Rec. and Dev. Feb 3, 2013 Sultan Alarada $100.000 Rec. and Dev. July31, Sultan Alarada $100.000 Rec. and Dev. 2013 Sept 8, Sultan Alarada $100.000 Rec. and Dev. 2013 Sept 30, Sultan Alarada $100.000 Rec. and Dev. 2013 Nov 5, 2013 Sultan Alarada $100.000 Rec. and Dev. Nov 28, Sultan Alarada $100.000 Rec. and Dev. 2013 Dec 31, Sultan Alarada $100.000 Rec. and Dev. 2013 Stood on are also invoices indicate heavy amounts' $287 thousands offered to Nabeel Mohamed Ali Kulaib a relative for Safer's director gen. which could not be settled by the manager's brother. Nabeel receives from the co. $3000, including one thousand as monthly salary and 2nthousand as bonus, as per the invoices. More than 300 million dollar dues in favor of Safer to be repaid by YLNLG, as an accumulative amount since 2008 to 2012 against operating expenses. Nepotism Appointments in Safer Several appointments made through this method in violating to the co. regulations and competition and advertisement principles. Some of these employees are as follows: 1- Alkhatab; husband to Ahmed Kulaib's daughter, and a media man at Suhail Satellite channel. 2- Basil Basuhail, brother to Ahmed Kulaib's wife, employed in an unlawful position. Corrupted Transmission of ODs Transporting of oil derivatives is an activity monopolized by influential people. A report by the CG said that it renewed oil derivatives transporting contract through vessels Alissa as its term had ended in 2012, however, the CG extended it for 5 years without bidding. The amounts expended for sea transmitting between Aden and Hodeida Ports are more than 100 million dollar on an annual basis as per
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reports. Alissa oil tankers are no longer good for the assigned duties, which is proved by Champion accident >>>>>> off Mokalla coast causing great environmental sabotage, inflicting heavy loss on Public Treasury sustained due to corrupted bargains which go unpunished. Geological Survey Authority and Minerals Corruption Though it is highly significant as being the single governmental body authorized to study and explore mineral wealth in Yemen and to present scientific reliable researches across the country tackling various kinds of metallic, and non-metallic, industrial and construction rocks, and gems, to facilitate internal and external propaganda and investment in media outlets and publishing, yet the authority suffers from lots of challenges obstructing performing its tasks, as highlighted in lines to come. Large scale corruption in its leadership. official negligence shown by State's and CG, despite its significance. The Gov. did not appoint a new head to Authority's Board nor it appointed a deputy chairman in place of the resigned one, rather it is still managed by an acting manager. No strategic plans to organize major tasks of the authority. No in-depth studies and researches on various metallic No sufficient scientific and technical training presented to manpower. Marginalizing competent cadre. Wasting the material capabilities, instead of getting them modernized, especially (labs, geophysics and drilling), e.g. lots of samples are sent abroad while the authority owns two paralyzed labs in Sana'a University and its provincial Aden-based office. Geological mapping, with scale fee 100: 0001launched more than 10 years ago has not been completed. No database or updated geological inclusive data are available at the authority headquarters or its branches. In one of his statements, Haja Deputy Mayor Mr. Zaid Argoush declared that gold in the province is in abundance, and anonymous companies were excavating and transporting great amounts by trucks to Hodeida and nobody knows where to go. He voiced an opinion involving taking care of these districts and control them. Sources said daily extraction by the excavating co. arise up to 2-4 of each drilling tool, which are semi-weekly transmitted to Sana'a aboard of trucks hired by the co based in Aflah Asham of Haja. The gold mine of Alhariqa is about 2 kilo meter long as per locals, while gold reserves in Alhariqa district is, as per Geological Survey estimate, roughly 30 million tons (unscientifically based estimates). Period of excavation allowed to a given co. and restricted by Law on mining is only two years, however, the Canadian Cantex has been working in such a gold mine since 1996 and the CG, that claims being revolutionary, does not abide by regulations. Though the co. has several advanced drillers, it claims that phase of extraction had not been reached yet, however, locals manage to get it through traditional tools and methods.
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As article no 44 of Yemeni law on mining and rock-cutting stipulates, considering compliance with all applicable laws, either a minimum 10 Yemeni rials fining or a 6 month long imprisonment maximum, against perpetuators of following acts: 1- and construction rocks' Industrial and construction rock extracting in violation to this law. 2- Rejecting payment of fees approved and Sate's dues on industrial exploiting. 3- Smuggling such rocks to overseas. 4- Use of rock-cutting licenses beyond the specified purposes. 5- Rejects to offer facilities and assistance required by the employees, or precludes by any means , performing their duties. 6- Deliver incorrect information to gain a contract of industrial exploit. Throughout 16 years, no violation has not been registered against the Canadian co. by Geological Survey Authority, as it does not know whether the co. was working or not. As Yemen has an estimated dozen of millions of lead, silver and zinc reserves , as well as 40 million tons of platinum and copper , yet in such a widespread corruption, who is the beneficiary from this wealth. This is the question. Seismology and Volcanos Study Centre As traditional methods are still used in this centre, particularly early alerting and seismic registering devices that are old models and illegally purchased against 400 thousands dollar, it needs to an integrated system of a number of observatory stations linked to satellite channels (early warning). Engineers confirm that the leaders of the centre played a pivotal role in acts of sabotage, as they awarded a tender to a firm with an insufficient experience in the same field, then a readvertisement was made and the tender was awarded to Aburigal Corp. unchallenged, without knowing reasons behind the first firm's rejection to it. Breaching Contractual Tendering Among the project's equipment is a 90 thousand dollars valued Central Station which is not purchased as agreed upon in the contract, whose financial allocation would unscrupulously be pocket money for corruptors. As for replaced parts, the bidding documents confirm remarkable difference between agreed upon devices and the purchased equipment arrived at the centre. Many tenders for which thousands of dollars are spent are unlawfully passed in wasteful biddings, such as bringing invalid devices claiming they are modern ones, and demands for more modernizing to the centre is made under pretext of high speed advancement of technology. The tenderers managed to manipulate some important parts pf the bid, in terms of ruling out dozens of contract-inclusive ground equipment that would have been distributed to several regions across the country, such as Albarakan of Sana'a, Amran , and Maren, and Dhamar field of Harat Hamon and Bir Ali etc. to monitor volcanic activities. As these devices have been cancelled from the bidding, the system is meaningless . In letter addressed by Central Bank of Yemen, to Seismology Auth.'s Chairman of Board, a number of breaches for which the authority was held accountable, was touched upon, including an invalidated credit, a shipping completion after
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deadline, airfreight bill .., the name of the carrier to Yemen is not included, and insurance bill for the beneficiary is non-negotiable. The letter said that certificate of origin was not endorsed by Yemen Embassy, rather it mentions Gorlab Co. however an indication of a manipulation appears as two co.'s were being involved in the bargain (along with Tsat Sa). Also altered is the name of the manufacturer, and country of origin is not included, which is implicitly known by the fact that the embassy did not sign the certificate of origin.
References consulted by the Report REPORT AS OF DECEMBER 31, 1995 on CERTAIN FIELDS in the .1 MARIB PERMIT AREA, BLOCK 18 , REPBLIC of YEMEN. 15 August .1996 REPORT AS OF DECEMBER 31, 1995 on CERTAIN FIELDS in the .2 .MARIB PERMIT AREA, BLOCK 18 , REPBLIC of YEMEN, 21 June 2005 EXPLORATION CONSULTANT Ltd (ECL) , GAS RESERVES & .3 .GAS RESOURCES IN YEMEN, 12TH AUGUST 2005 GCA Report, BLOCK 18 OIL & GAS RESERVES, prepared for .4 .SAFER E&P OPERATIONS COMPANY, JANUARy, 2013 - A number of documents in English language disclosing violations while drilling and exploring Bloc (18) - A list of key references on Gas corruption relied upon by the preparing committee include: Gas Development Agreement1995- 1996 Monthly Reports on Production for 2012, Gas E & P Authority Letter of Oil Minister 2005 Lecture by , member of Exploring committee blocs (3-7) Mr. Nabeel Abdullah Saeed mud-rock gas new source of energy 1REPORT AS OF DECEMBER 31, 1995 on CERTAIN FIELDS in the MARIB PERMIT AREA, BLOCK 18 , REPBLIC of YEMEN. 15 August 1996. 2- REPORT AS OF DECEMBER 31, 1995 on CERTAIN FIELDS in the MARIB PERMIT AREA, BLOCK 18 , REPBLIC of YEMEN, 21 June 2005. 3- EXPLORATION CONSULTANT Ltd (ECL) , GAS RESERVES & GAS RESOURCES IN YEMEN, 12TH AUGUST 2005. 4- GCA Report, BLOCK 18 OIL & GAS RESERVES, prepared for SAFER E&P OPERATIONS COMPANY, January, 2013 Secondary documents
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1- Study by Oil Authority on Gas Reserves in Republic of Yemen in 2012 2- Study by Kuwait Energy on Gas Reserves in Republic of Yemen in 2012 3- Symposium held early 2013, in Oil Ministry, organized by Gas E & P Authority 4- Other documents and agreements on Gas Project: Gas Development Agreement, Feeding gas supplies Agreement.
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Monitoring Report On Oil and Minerals, Yemen

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Monitoring Report On Oil and Minerals, Yemen

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Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Revolution Salvation Front

Monitoring & Evaluative Report on Performance of Oil and Minerals Ministry

Feb 19, 2014

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Account Balance 1/1

Registers: a Balance 31/12

Institution al support Training

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Social developme nt Total

8.344.056. 7 47.076.68 5.7

7.8 80344.05 7.0 47.131.50 6.0

551.8 10.189. 607.1 50.588. 567.6

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

300,000 600,000 600,000 300,000

100,000 100,000 800.0000

100,000 50,000 1.050.000

300,000 200.000 2.600.000

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Amount in dollar 1.345.315

D.N.O Canadian Nexen Calvally D.N.O O.M.V total

1 136.229 65.834 943 69.491 1.617.813

Committee on Oil & Minerals, Public Shadow Authority

Revolution Salvation Front

Date Jan 10,2012

Feb 4,2012 Feb 6,2012

Committee on Oil & Minerals, Public Shadow Authority