Oil work stoppage reported in Yemen

Norway's DNO ASA declares force majeure.
By Daniel J. Graeber Follow @dan_graeber Contact the Author   |  June 24, 2014 at 9:43 AM
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SANAA, Yemen, June 24 (UPI) -- Norwegian oil and gas operation DNO ASA said Tuesday it suspended operations in parts of Yemen because of blockades by local groups.

It said local labor unions took unilateral action to stop work at the Howarime and South Howarime reserve areas in the country Sunday.

"Access to and conduct of operations on these blocks have been restricted since late last year as a result of blockades by local groups restricting movement of equipment, supplies and contractors," the company said in a statement.

As a result, the company issued force majeure notices to the Yemeni Ministry of Oil and Minerals, which frees it from its contractual obligations because of circumstances beyond its control.

With a 16-year track record of operations in Yemen, the Norwegian company said it was committed to resuming operations in the country and resolving the issues with labor unions.

DNO last declared force majeure in Yemen in September.

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