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DNO stops energy work in Yemen

War-torn Yemen situated near strategic oil-transport channel.

By Daniel J. Graeber

OSLO, Norway, March 31 (UPI) -- Norwegian energy company DNO announced Tuesday it stopped work in Yemen because of the tense security situation in the country.

The company said it suspended operations in Yemen entirely. Prior to the announcement, the company said it was producing around 1,950 barrels of oil per day from two reserve interests in the country.

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Saudi Arabia last week announced it was leading military operations, dubbed Decisive Storm, with its Arab allies "in order to defend the legitimate government in Yemen and prevent the Houthi militias from controlling the country by force."

The Houthi militia, a Shiite group, has in recent weeks put pressure on the administration of President Abd Rabbuh Mansur Hadi. U.S. forces are providing assistance to their Saudi counterparts .

The Houthi uprising escalated last year in Yemen. In November, DNO declared force majeure in Yemen, meaning it was freed from contractual obligations because of circumstances beyond its control, out of security concerns.

"The company continues to monitor the situation closely and has initiated plans to secure its facilities and remove non-essential staff," the company said in its latest statement. "All expatriates were previously relocated to Dubai."

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A September brief from the U.S. government finds Yemeni oil production has been in a steady state of decline since 2001 because of the lack of national security and the natural decline of oil and gas fields.

Though the country is not a major producer, the Bab el-Mandab shipping channel makes Yemen a strategically significant country. More than 3 million barrels of oil per day passes through the channel at full capacity.

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