Oil production in Yemen is shrinking rapidly and is expected to drop below 250,000 b/d 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 $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.
Yemen was then temporarily suspended from the EITI for a year between June 2011, and June 2012 following prolonged violence and instability. However, the suspension was lifted on 14 June 2012, following stabilisation of the political situation and the re-establishment and functioning of the MSG. On lifting the suspension, the Board required that the 2008 and 2009 reports be completed by the end of 2012, and EITI reports covering 2010 and 2011 by 31 December 2013. Yemen is also required to publish an annual report for EITI progress in 2011 as soon as possible and no later than 31 December 2012 (this requirement is set out in the EITI Rules: Requirement 21 (c)).
However, progress since the lifting of suspension has been slow and characterized by distrust over the representation of civil society in the MSG. This culminated in a dispute over the new EITI by-laws. The elections for new MSG representatives has been postponed until the by-laws have been agreed.
Given that the last available EITI data for Yemen related to 2007, the EITI Board suspended Yemen again on 26 February 2013, requiring that the 2008 and 2009 reports be published by the end of 2013 or Yemen would face delisting.
Yemen is planning to include company by company disaggregated data for 2008, 2009, 2010.
A Government Decree passed in December 2012 embeds YEITI into government systems and assures its finance.