A security official said national troops charged with security at oil fields were deployed to the region as engineers assessed damage to an oil pipeline in Shabwa.
An unidentified local security official told China's official Xinhua news agency that suspected al-Qaida militants targeted the pipeline, which carries oil to the Balhaf terminal on the Arabian Sea.
Yemen's export infrastructure has been the frequent target of attacks since the start of a popular uprising against the government last year.
Energy company Yemen LNG said militants targeted a 38-inch natural gas pipeline tied to the terminal in late October.
In June, the Yemeni Ministry of Oil said attacks on oil and natural gas infrastructure cost the country as much as $15 million per day in lost revenue.
Xinhua didn't provide any information regarding the pipeline's operator or whether any injuries were reported after the blast.
Couple mistakenly served bag of cash at McDonald's drive-thru
Benedict Cumberbatch's dramatic reading of R. Kelly lyrics is just what you need