The Ministry of Oil and Mineral Resources (MOMR) places oil tenders up for bid on a semi-annual basis. Contracts typically involve a 2-3 year exploration period and a 20-year production concession. The Petroleum Exploration and Production Board of MOMR authorizes all licenses for exploration and production in Yemen, subject to ratification by parliament. All contracts are signed between a company or group of companies, as contractor to the government of Yemen. In late 1999, the government took steps toward improving investment in the countrys oil, gas, energy and petrochemical activities by redefining terms for certain concession agreements. These more favorable terms include lower signature bonuses, an increase in the proportion of oil earnings that companies can claim for development cost recovery to between 50 percent and 70 percent (compared with a previous range of 25-45 percent), and the introduction of a sliding scale of 3-10 percent for royalties (compared with a previous flat fee of 10 percent). In mid-2001, Yemeni officials took further steps to improve the energy-related investment climate, announcing a policy of contract extensions, added flexibility on negotiations, and a commitment to amending existing legislation if necessary.
Yemen General Corporation for Oil & Gas/Mineral Resources, is an affiliation of several state-owned subsidiaries including: the Yemen Oil Company (YOC); the Yemen Refining Company (YRC); the Petroleum Exploration and Production Authority (PEPA) and the General Department of Crude Oil Marketing (GDCOM). All branches report to the MOMR. The company is responsible for managing the industry contracts and relations with operators and partners, as Well as the governments share of crude exports.