Yemen is highly dependent on its hydrocarbons sector, which in 2010-2012 accounted for almost two thirds of government revenues and 90% of total export revenues according to the International Monetary Fund (IMF). Due to natural decline and frequent attacks on its oil infrastructure however, oil production in Yemen continues to shrink rapidly. At an estimated 100,000 barrels a day, production in March 2014 was comparable to production levels in the early 1980s.
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. Like its oil infrastructure, Yemen's natural gas infrastructure is also the target of persistent attacks.
The dependence on hydrocarbons means that the economy is highly vulnerable to fluctuations in the international prices of oil and gas. Meanwhile the IMF estimates that a price of US $215 per barrel would be necessary for the government to balance its budget. 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 expand the extractive sector in Yemen.
The EITI Board decided to suspend Yemen on 26 February 2015 due to political instability.
Yemen's fourth report covering data from 2012 was due on 31 December 2014. The multi-stakeholder group's extension request was superseded by the Board's decision to suspend Yemen due to political instability.
Yemen has been suspended three times from the EITI. It was suspended for a year between June 2011 and June 2012 following prolonged violence and instability. Between February and July 2013, it was suspended due to the delayed publication of the 2008, 2009 and 2010 reports, and between March and May 2014, for delayed publication of the 2011 report.
Yemen was declared compliant on 1 March 2011. 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.