Oil production in Yemen is shrinking rapidly and expected to drop below 250,000 barrels per day by 2014. Meanwhile, Liquefied Natural Gas (LNG) production has been increasing since its first shipment to South Korea in November 2009, but not enough to compensate for the fall in oil production. In 2009, oil accounted for over 85% of export earnings and an estimated 70% of government revenues. This leaves the economy highly vulnerable to fluctuations in the international prices of oil and gas. The country's oil reserves are relatively limited and could be depleted within 10 years. Gas revenues are set to total US $30-50 billion from 2008 to 2028, and recent discoveries of zinc will expend the extractive sector in Yemen.
Yemen was declared compliant on 1 March 2011. The EITI Board suspended Yemen on 26 February 2013 on the ground of lack of timeliness, noting that the last EITI Report at that time related to 2007. The Yemen EITI published its 2008, 2009, and 2010 reports on 30 June 2013. The Board lifted its suspension on 27 July 2013. Yemen is required to publish its 2011 report by the end of 2013.
This was the second time that Yemen has been suspended from the EITI. It was suspended for a year between June 2011 and June 2012 following prolonged violence and instability. Progress since the lifting of suspension was slow and characterised by distrust over the representation of civil society in the multi-stakeholder group (MSG). This culminated in a dispute over the new EITI by-laws. The elections for new MSG representatives are still outstanding and are particularly challenging on the civil society side where there are two civil society coalitions.