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 19 March February 2014 on the ground of lack of timeliness, noting that the 2011 EITI Report was due to be published by the end of 2013. The Yemen EITI's last report covered 2008, 2009, and 2010 and was publisehd on 30 June 2013.
This isthe third 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, and again between February and July due to the dealyed publication of the 2008, 2009 and 2010 reports.
Progress has been slow and characterised by distrust over the representation of civil society in the multi-stakeholder group (MSG). Elections for new MSG representatives are still outstanding and are particularly challenging on the civil society side where there are two civil society coalitions.