Resumption of oil exports: Will Yemen recover its economic lifeline?

What the report says

Al Jazeera reports that Yemen’s internationally recognized government is preparing to restart oil exports after a halt that began in late 2022, following an announcement by Presidential Leadership Council head Rashad al-Alimi that shipments would resume from July 20. The move is being presented as a potential restoration of the government’s main source of foreign currency, with officials pledging to use revenue for salaries, services and broader economic stabilization.

The report says Yemen has proven reserves of about three billion barrels, concentrated mainly in the Masila, Marib and Shabwa basins, but war and attacks on energy infrastructure have sharply reduced output. Oil Minister Mohammed Bamqaa said more than 1.7 million barrels are ready for export and that initial production could reach about 60,000 barrels per day. Hadramout University economist Mohammed al-Kasadi told Al Jazeera that domestic use could leave around 40,000 barrels per day available for export.

Analysts cited by Al Jazeera cautioned that restarting production is only part of the challenge. Facilities, pipelines and ports need protection and technical checks, while shipping firms, insurers and international buyers must be convinced that cargoes can move safely. Houthi attacks on export ports in Hadramout and Shabwa in late 2022 helped trigger the current suspension, and the group has linked exports to receiving a share of revenues for public salaries.

The issue matters because lost oil income has deepened Yemen’s financial crisis, weakened foreign-currency inflows and strained the government’s ability to fund basic services. Experts in the report said the economic benefit will depend less on a single shipment than on sustained security, transparent revenue management and whether exports can continue despite Yemen’s unresolved political and military divisions.