Yemen attacks set for impact on oil and gas sector (page 1 of 2)

  • Yemen: Thursday, October 07 - 2010 at 17:03

An armoured vehicle carrying five British Embassy staff, including the deputy chief of mission, was targeted in an attack yesterday within hours of another attack targeting a French national working for Austrian firm OMV.

By Sam Ciszuk and Sara Hassan, IHS Global Insight

Militants fired a rocket-propelled grenade at the car around 3 kilometres from the British Embassy in the capital, Sana'a. Only one staff member suffered injuries and is receiving treatment, according to the British Foreign Office. Two bystanders were also injured. Yemen, the ancestral home of Osama bin Laden, has been the scene of a resurgence in militant activity over the past few years. Capitalising on brewing discontent with the central government, lawlessness and pressures on the Yemeni military as a result of conflicts in the north and south of the country, militant groups have successfully strengthened their foothold. Al Qaida, which has yet to claim responsibility for either attack, but nonetheless remains the likely culprit, has established a strong presence in the country and continues to seek to destabilise the current government.

Attacks of this nature are by no means unusual in Yemen, although there has not been an attack like this for several months. Fighting between the security forces and militants has been increasing amid growing pressure from the United States to confront the problem of al-Qaida more aggressively. Hundreds of militants have been killed as the government, buoyed by record levels of assistance from the United States, stepped up its campaign. As the situation escalates it seems that al-Qaida may once against resort to expanding the focus of its attacks beyond purely military and security targets, as it has done for the last few months.

There is no particular reason why the United Kingdom would have been more of a target than any other European nation, although there have been reports that the British SAS has been playing a key role in training Yemeni security personnel. The United Kingdom, like many countries, remains concerned that a strong al-Qaida presence in Yemen threatens its own interests, both at home and abroad. U.S. interests have been repeatedly targeted in the past, with one of the worst incidents occurring in 2008 when a gunfight outside the U.S. Embassy compound left 16 people dead, including one dual Yemeni-U.S. national.

Energy sector repeatedly targeted


The energy sector has repeatedly been targeted in Yemen: pipelines have been attacked, offices targeted, and personnel kidnapped. Although attacks taking place against oil facilities and installations from time to time has been factored into the international oil company (IOC)'s calculations when investing in Yemen, a fatality is a serious escalation and will only exacerbate growing investor discomfort over what is seen as a slipping security situation in the impoverished country. Yemeni security forces have traditionally devoted large efforts to the protection of IOCs and their operations, with much of the threat normally coming from tribal groupings interested in low-level sabotage or short-term kidnappings, mainly in order to draw attention to their grievances and enlarge their share of the patronage stream paid out from the central government.

The interest of tribal groupings has therefore not been in any large-scale disruption of the oil and gas flow, as ultimately they have attempted to increase their access to the oil revenue. More violent Islamist elements, probably associated with al-Qaida, have repeatedly made threats against oil companies, given how vital they are to the Yemeni state, but given their relatively limited operational capabilities outside of urban areas and the ease with which perimeter security can be upheld in the sparsely populated desert regions holding most of Yemen's IOC-developed oil and gas acreage, few large-scale attempts at disruption have succeeded.
The entire Yemen energy sector could be affected by the attacks.
The entire Yemen energy sector could be affected by the attacks.
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