DNO Stops Yemen Production amid Strikes

Norwegian oil and gas firm DNO announced Tuesday that it has issued force majeure notices to Yemen's Ministry of Oil and Minerals for Block 32 Howarime and Block 43 South Howarime, temporarily suspending production on both blocks.

DNO said it has taken the measures because access to and conduct operations on the blocks have been restricted since late 2013 as a result of blockades by local groups that have restricted movement of equipment, supplies and contractors. On June 22, local labor unions initiated unilateral actions that have led to work stoppages at Block 32 and Block 43.

DNO's production from the two blocks had averaged 1,600 barrels of oil per day prior to suspension.

DNO said it is committed to resuming operations in Yemen, where it has been active since 1998, and that it is engaged with the government and the unions to resolve outstanding issues.

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