The Saudi Oil Derivatives Grant

Sixth Tranche of the Saudi Oil Derivatives Grant Arrives in Aden

The sixth tranche of the Saudi Oil Derivative Grant has arrived at Al-Zait port in Aden Governorate. The tranche, provided by Saudi Arabia and supplied through the Saudi Development and Reconstruction Program for Yemen (SDRPY), included 60,000 metric tons of diesel and 30,000 metric tons of mazut. The total amount of oil derivatives that have been supplied since the beginning of the grant has reached 506,000 metric tons, and that is to meet the monthly needs submitted by power plants in the Yemeni governorates. The oil derivatives grant is an extension of Saudi Arabia’s ongoing support to Yemen across all sectors. The 2021 grant provides an amount of more than 1,260,850 metric tons of fuel at an amount of $422 million, which is an extension of the previous Saudi oil derivatives grants amounting to more than $4.2 billion. In a statement, the Yemeni Minister of Electricity Dr. Anwar Kalashat said the Saudi Oil Derivatives Grant has a significant impact on the economic level as well as the provision of energy services in various regions. Dr. Kalashat cited the great suffering experienced by residents in Yemen before the grant due to the shortage of fuel supplies, which was the culprit behind the recurring and prolonged power outages that lasted for days. In some governorates, Dr. Kalashat noted, the power outage would continue for up to seven days. However, after the arrival of the grant, the level of electrical energy production became stable across various governorates for seven months. In addition, Dr. Kalashat said that residents could sense the outcomes of the grant and the improved electrical energy production. Now that energy generation is almost stable, electricity has significantly improved in several governorates and continues for 24 hours in other governorates. Highlighting the impact of the grant, Dr. Kalashat added that the grant has a significant impact at the economic level, as the Yemeni government has reallocated the funds initially assigned to purchasing fuel to improve the standard of living for residents in Yemen while developing solutions to problems in the energy sector. Praising the Kingdom’s support for the Yemeni energy sector, the Undersecretary of the Ministry of Electricity and Energy, Mr. Abdul Hakim Fadel, remarked that the grant had a great impact on people’s lives and saved the Yemeni government millions of dollars, which would have been spent on purchasing fuel for power plants. The grant, he added, also assisted the Yemeni government in directing its expenditures to support civil employees’ salaries as well as to enhance the provision of basic services. On his part, the First Undersecretary of Aden, Mr. Mohammed Nasr Al-Shathily, expressed his gratitude and extended the appreciation of Aden’s Governor, Ahmed Hamed Lamas, to all who have contributed to the delivery of the sixth tranche. The sixth tranche is an extension of the previously delivered tranches that have provided stability in energy generation, Al-Shathily remarked, adding that the Saudi derivative grant has alleviated the sufferings of Aden’s residents. Praising the Kingdom’s support provided through the SDRPY for the various sectors and the Yemeni electricity sector, in particular, Al-Shathily reiterated his thanks to the leadership and people of the Kingdom of Saudi Arabia. Meanwhile, the Director of the SDRPY office in Aden, Mr. Ahmed Madkhali, reiterated that SDRPY’s Oil Derivatives Grant is a continuation of the Kingdom’s support to Yemen, a reflection of the strong ties between the two countries. The oil derivatives grant has significantly helped solve the problem of frequent power outages, which contributed to social stability and enhanced the provision of basic services across vital sectors. The grant, he added, has also contributed to stabilizing oil prices, positively impacting the economic, health, educational and service fields, and improving the infrastructure. A supervisory committee supervises and monitors the disbursement of the grant to the respective governorates and based on the needs submitted from the power plants in the Yemeni governorates in advance to the committee. Along with SDRPY, the committee is composed of several Yemeni agencies and parties, including the Ministry of Electricity and Energy, the Ministry of Finance, the Ministry of Planning and International Cooperation, in addition to the General Electricity Corporation and Aden Refineries Company. The committee is tasked with implementing the agreed procedures and governance to ensure that the grant reaches every beneficiary. The quantities of oil derivatives delivered to date – 333,000 metric tons of diesel and 173,000 metric tons of mazut – contributed to the operation of more than 65 power plants distributed over the Yemeni governorates, which led to generating more than 1533 gigawatts-hours of energy. Compared to energy production, transmission, and use in 2020, an overall improvement was observed in 2021 and with the implementation of the grant. Specifically, energy production increased by 17%, power transmission increased by 12%, energy sales increased by 13%, and the average operating hours increased to over 20 hours across several governorates. The Saudi Oil Derivatives Grant is part of SDRPY’s many ongoing projects and initiatives. To support the Yemeni people, the program has provided more than 204 development projects and initiatives across various Yemeni governorates and in seven key sectors, including education, health, water, transportation, agriculture and fisheries, and capacity-building of government institutions, in addition to other development programs.

Another tranche of the Saudi oil derivatives grant reaches Aden on time

• Aden - July 17, 2021

The Saudi Oil Derivatives Grants Supervisory and Control Committee, formed by the Yemenigovernment with the membership of several Yemeni parties and relevant entities, has confirmedthat a third tranche of the oil will arrive in Aden as scheduled during the Eid Al-Adha holiday.The tranche comes to fulfill the needs of many power plants scattered across the variousYemeni governorates, as requested by the General Electricity Corporation.
By contributing to the operation of more than 80 power plants across Yemen, the grant has ledto a reduction in power shortages and the duration of these shortages. For instance, betweenthe months of May and June, the Saudi oil derivatives grant contributed to raising thepercentage of energy produced in the power system by more than 23% in all governorates andby more than 40% in the Aden governorate alone, providing stability in the fuel supply.
The Saudi derivatives grant has reduced the burdens on the Yemeni government’s budget andhelped the Yemeni government redirect public expenditure towards enhancing the services ofvital sectors and improving the livelihoods of Yemenis.
It is estimated that the third tranche of Saudi oil derivatives (diesel) weighing 75,000 metric tonswill arrive at the Port of Aden sometime between June 23-24.

New Tranche of Saudi Oil Derivatives Arrives at Al-Mahra Governorate

• AL-MAHRA — 3 July 2021

A new tranche of Saudi the oil derivatives grant provided to the Republic of Yemen arrived in Al-Mahra Governorate, amounting to 5,500 metric tons of diesel that will feed the power plants in Al-Mahrah Governorate. The tranche includes 4,000 metric tons shipped by sea, and 1,500 metric tons shipped by road transport to meet the monthly needs of the governorate.
The shipments were received by the Governor of Al-Mahrah, Muhammad Ali Yasser, and Eng. Abdullah Ba-Sliman, director of the Saudi Development and Reconstruction Program for Yemen (SDRPY) in Hadhramaut and Al-Mahrah governorates, and representatives of the Yemeni Oil Company and the Electricity and Energy Company and some officials from the governorate. The grant contributes to alleviating the burden on the budget of the Yemeni government, reducing the depletion of hard currency by the Central Bank of Yemen to purchase oil derivatives from global markets, and contributed to stabilizing the Yemeni riyal exchange rate and fuel prices against the US dollar, providing job opportunities, raising the productive power of the Yemeni citizen, and improving vital sectors services, and improving the lives of Yemeni citizens.
It also contributes to reducing frequent electricity cuts that affect daily living, as well as the quality and performance of services in vital sectors in Yemen. This support will have a positive impact on the economic, health, educational and service fields.
The SDRPY has worked with the Yemeni government to develop integrated governance mechanisms for the oil derivatives, and the Yemeni government formed a supervision, control and follow-up committee consisting of all relevant Yemeni ministries and agencies. The committee is linked to an executive program and a control mechanism that ensures that the grants reach the beneficiary stations with high reliability, integrity and transparency, to ensure actual access to the beneficiaries, and to ensure the use of oil derivatives for the purposes for which they were allotted.
The joint committee has scheduled the shipments of the Saudi oil derivatives grant, which contributes to helping the Yemeni government direct its expenses, and use the amounts that were allocated for the purchase of oil derivatives to support the salaries of civil employees in the government, and provide basic services that raise the standard of living and living opportunities.
These development projects implemented by the SDRPY in Aden are among 198 development projects and initiatives that it has implemented in various Yemeni governorates to meet the needs of the Yemeni brothers in 7 basic sectors: education, health, water, transportation, agriculture and fisheries, and capacity building of government institutions.

Second Tranche of the Saudi Oil Derivatives Grant Arrives at Hadhramaut Governorate

• Al-Mukalla - June 23, 2021

Today, the second tranche of the Saudi oil derivatives grant provided to the Republic of Yemen arrived at the port of Al-Mukalla in Hadhramaut, with quantities amounting to 23,000 metric tons of oil derivatives; to operate the power plants in the governorate, in coordination with the local authority, to meet the needs submitted by the power plants in Hadhramaut.
The oil derivatives shipment was received by Hadhramaut Governorate Undersecretary for Technical Affairs, Engineer Amin Saeed Ba-Rezeq, Director of the SDRPY office in Hadhramaut and Al-Mahrah governorates, Eng. Abdullah Ba-Sliman, representatives of the Yemeni Oil Company, the Electricity and Energy Company in Yemen, and officials from the governorate.
The Undersecretary of Hadhramaut Governorate for Technical Affairs, Engineer Amin Saeed BaRezeq, said: "The Kingdom of Saudi Arabia has provided substantial support in various service and development fields, and we hope that the Saudi oil derivatives grant will contribute to improving the electricity conditions in the governorate."
The director of the SDRPY office in the Hadhramaut and Al-Mahrah governorates, Eng. Abdullah Ba-Sliman, stressed that the oil derivatives grant provided by the Kingdom of Saudi Arabia, through the SDRPY, comes in coordination and cooperation with the Yemeni government and local authorities, to operate power stations in the Yemeni governorates, at a value of 422 million US dollars, in support of achieving living and economic stability for the Yemeni people, and an extension of the support provided by the Kingdom of Saudi Arabia to the Republic of Yemen in all fields, and an affirmation of the bonds of brotherhood and strong ties between the two brotherly countries.
The grant contributes to alleviating the burden on the budget of the Yemeni government, reducing the depletion of hard currency by the Central Bank of Yemen to purchase oil derivatives from global markets, and to stabilizing the Yemeni riyal exchange rate and fuel prices against the US dollar, providing job opportunities, raising the productive power of the Yemeni citizen, enhancing vital sectors services and improving the lives of Yemeni citizens.
It also contributes to reducing frequent electricity cuts that affect daily living, as well as the quality and performance of services in vital sectors in Yemen. This support will have a positive impact on the economic, health, educational and service fields.
The SDRPY has worked with the Yemeni government to develop integrated governance mechanisms for oil derivatives, and the Yemeni government formed a supervision, control and follow-up committee consisting of all relevant Yemeni ministries and agencies. The committee is linked to an executive program and a control mechanism that ensures that the grants reach the beneficiary stations with high reliability, integrity and transparency, to assure that the beneficiaries have actual access to them, and to ensure the use of oil derivatives for the purposes for which they were allotted.
The joint committee scheduled the shipments of the Saudi oil derivatives grant, which contributes to helping the Yemeni government direct its expenses, and the use of the amounts that were allocated for the purchase of oil derivatives to support the salaries of civil employees in the government, and to provide basic services that raise the standard of living and livelihood opportunities.
These development projects implemented by the SDRPY in Aden are among 198 development projects and initiatives that it has implemented in various Yemeni governorates to meet the needs of the Yemeni brothers in 7 basic sectors: education, health, water, transportation, agriculture and fisheries, and capacity building of government institutions.

Second Tranche of the Saudi Oil Derivatives Grant Arrives to the Port of Aden

• Aden - June 10, 2021

The procedures for unloading the second shipment of the oil derivatives grant have been completed, which is provided by the Kingdom of Saudi Arabia to the Republic of Yemen through the Saudi Development and Reconstruction Program for Yemen (SDRPY) in Aden Refineries, with quantities of 70,000 metric tons of diesel, and 40,000 metric tons of diesel fuel.
The second tranche arrived last Thursday at the oil port in Aden to be distributed to the power stations that have started to benefit from the grant, which contributed to significantly reducing electrical outages in the governorate of Aden. At the beginning of the month, the readiness of the beneficiary stations that suffer from a decline in their generation capacities due to weak generators was examined, as part of the mechanism of the grant that provides scheduled monthly payments according to the needs submitted by the Yemeni government.
It is worth noting that this grant provides an amount of more than one million and two hundred metric tons of fuel for a year at an amount of 422 million US dollars, which is an extension of the previous Saudi oil derivatives grants amounting to more than 4.2 billion US dollars, and a committee for the governance of oil derivatives was formed to supervise and control these tranches.
The SDRPY provides development support for the energy sector in Yemen along with other basic sectors, such as health, education, water, agriculture, fisheries, capacity building of government institutions and transportation, through its 200 projects and initiatives, adopting the best development practices in its work to contribute to the sustainability of the impact and realization of benefits.

SDRPY Inspects a Number of Its Development Projects in Aden
It Completes the Follow-Up Work on the Distribution of the Saudi Oil Derivatives Grant

• May 11, 2021

The team assigned by the Saudi Development and Reconstruction Program for Yemen (SDRPY) to manage the oil derivatives grant provided by the Kingdom of Saudi Arabia to the Republic of Yemen has completed the follow-up to the work of the supervision and control committee that has been formed by the Yemeni government to distribute oil derivatives to power plants in Yemen, to confirm the implementation of the approved procedures, and to assure that the oil derivatives reach the beneficiaries.
The team conducted a number of inspection visits - coinciding with the team presence in Aden Governorate - which included a number of power plants to follow up the procedures for receiving the power plants’ share of the Saudi oil derivatives grant, check the readiness of the fuel unloading sites and transport tanks, inspect the generators and the efficiency of operating them, in addition to following up on the approved models and mechanisms for unloading fuel into the power plants’ tanks, and that they reach the tanks safely, in an effort to raise the operational capacity of the power plants through direct supervision of their implementation plans.
The visits included inspecting a group of SDRPY projects - under implementation - in Aden governorate; to assess the volume of completed works and evaluate the dates of their launch, starting from the project to rehabilitate Aden General Hospital, in which all final supply work had been completed in preparation for its launch during the current year, after it had been equipped with more than 2187 medical devices, tools and equipment, with the aim of facilitating access to adequate medical care for the people in Aden and the neighboring provinces.
The team paid a visit to the Caltex-Al-Haswa Road solar-powered lighting project, which uses (LED) technology, which saves an amount of 57.75 MWh of electrical energy in the governorate of Aden, as it is clean and sustainable energy, and the project is among the projects of the program to rehabilitate vital roads in the province.
The team inspected the project to rehabilitate Martyr Ali Asaad Muthanna Sports Hall, which is nearing completion, and all the required works have been implemented. It also inspected the construction works of two of the model schools under implementation, out of 23 schools being constructed and equipped in various Yemeni governorates, namely: Lutfi Aman School and Campus School, which are built according to high standards and criteria, to enhance opportunities for quality education for male and female students. School facilities include constructing and equipping playgrounds and laboratories that facilitate extra-curricular activities, and classrooms that are equipped with all requirements that advance the educational process.
These development projects implemented by SDRPY in Aden are among 198 development projects and initiatives that it has implemented in various Yemeni governorates to meet the needs of Yemeni brothers in seven basic sectors: education, health, water, transportation, agriculture and fisheries, and capacity building of government institutions.

The arrival of the first tranche of the Saudi oil derivatives grant to the port of Aden in the Republic of Yemen

• Aden May 8, 2021

This morning, the first tranche of the oil derivatives grant from the Kingdom of Saudi Arabia arrived at the port of Aden, in coordination and cooperation with the Yemeni government and local authorities, to operate more than 80 Yemeni stations at a value of 422 million US dollars, the total quantities of which amount to 909,591 metric tons of diesel, and 351,304 metric tons of fuel oil, in support of achieving economic and living stability for the Yemeni people, and a continuation of the generous support provided by the Kingdom of Saudi Arabia to the Republic of Yemen in all fields and an affirmation of the bonds of brotherhood and strong ties between the two brotherly countries. This grant coincides with the beginning of the summer months, which represent the peak of electrical consumption as temperatures soar.
The oil derivatives grant was received in the port of Aden by the Commander of the Duty Forces, Brigadier General Nayef Al-Otaibi, Minister of Electricity and Energy, Dr. Anwar Kalashat, Governor of Aden Governorate, Ahmed Hamid Lamels, Deputy Minister of Oil, Dr. Saeed Al-Shamasi, Deputy Minister of Planning, Nizar Bashaib, Director of the Oil Derivatives Project at the Saudi Development and Reconstruction Program for Yemen (SDRPY), Engineer Salman Al-Hazimi, and Director of the Office of the Saudi Development and Reconstruction Program for Yemen (SDRPY), Engineer in Aden Governorate, Ahmed Madkhali.
Furthermore, the grant was received by a group of specialists from the Saudi Development and Reconstruction Program for Yemen (SDRPY); in order to follow up and supervise the arrival procedures, and to check the readiness of the power stations that will receive the grant.
The director of the Oil Derivatives Project at the Saudi Development and Reconstruction Program for Yemen (SDRPY), Engineer Salman Al-Hazimi, said: “Work has been carried out with the Yemeni government to develop comprehensive governance mechanisms for oil derivatives, and the Yemeni government has formed a supervisory, monitoring and follow-up committee consisting of all relevant Yemeni ministries and authorities, and civil society organizations in Yemen, as well as the Saudi Development and Reconstruction Program for Yemen (SDRPY) as a member in the committee and an international third party represented by a neutral inspection company, in addition to the media.
Al-Hazimi stressed that the committee is linked to an executive program and a monitoring mechanism that ensures that the grant reaches the beneficiary stations with high reliability and integrity, and provides access to the grant data via an electronic platform that will be launched soon; to enhance transparency, guarantee that the grant reaches the beneficiaries and ensure that oil derivatives are used only for the purposes for which they were originally intended.
The grant will actively contribute to the recovery of economic and social life, especially as it will help the Yemeni government to direct its expenditures to support civil employees’ salaries, and to enhance the provision of basic services by contributing to the operation and revival of infrastructure projects.
The oil derivatives grant will also contribute to solving the problem of frequent power outages that affect daily living, as well as raising the performance of vital sectors services in Yemen. This support will have a positive impact that will be reflected in the economic, health, educational and service fields, and improve the general conditions.
The previous oil derivatives grants that have been provided by the Kingdom of Saudi Arabia, with an estimated total of 4.2 billion US dollars, have had an economic impact of reducing the burden on the Yemeni government’s budget, and not depleting the Central Bank of Yemen of hard currency for the purpose of purchasing oil derivatives from global markets. They have, furthermore, contributed to stabilizing the exchange rate of the Yemeni Riyal and fuel prices against the US dollar and providing job opportunities, in addition to raising the productive strength of the Yemeni citizen, improving the services of vital sectors and improving the livelihood opportunities and living conditions for the Yemeni people

SDRPY Signs the Oil Derivatives Grant Agreement with the Yemeni Government

• 20 مايو 2021

In response to the request of the Yemeni government and to uphold the directives of the prudent leadership of the Kingdom of Saudi Arabia, SDRPY General Supervisor, H.E. Ambassador Mohammed AlJabir, has signed an agreement with the Minister of Energy and Electricity, Dr. Anwar Kalshat, representing the Government of Yemen; to provide oil derivatives to more than 80 power plants. These oil derivatives are part of the Saudi Grant that so far has reached 1,260,850 metric tons, amounting to USD 422 million, to support the economy of Yemen, develop its infrastructure and alleviate the suffering of our brotherly Yemeni people. The agreement was signed at the SDRPY HQ in Riyadh in the presence of the Minister of Oil and Minerals, Mr. Abdulsalam Abdullah Babood, in addition to a team of Yemeni executives and SDRPY development specialists. Minister of Energy and Electricity, Dr. Anwar Kalshat, expressed his appreciations to the Kingdom of Saudi Arabia for its continuous support to the Republic of Yemen, describing the support to the energy sector as important and vital, adding that the main objective of this grant is to provide Yemeni homes with electricity, restore the electricity to the people in Yemen, and assist us achieve economic growth in the Republic. H.E. Ambassador AlJabir stressed in his speech on this occasion that the Saudi oil derivatives grant is the response of the Kingdom’s prudent leadership to the Government of Yemen request, to support the brotherly Yemeni people and to achieve security and stability in Yemen. Furthermore, H.E. Ambassador AlJabir affirmed that the Saudi Oil Derivatives Grant aim is to operate power plants to serve the Yemeni people, develop infrastructure, create job opportunities, and contribute to improving services as well as promoting peace and hope. He added that the Grant will contribute effectively to the recovery of economic and social life, especially as it will enhance the budget of the Yemeni Government, and will help it meet its other obligations, which include paying the salaries and wages of employees, and improving services in essential sectors. The Director of the Oil Derivatives Project, SDRPY Eng. Salman Al-Huzaimi, stated that SDRPY will work to distribute the Saudi Oil Derivatives Grant through a joint Control and Supervisory Committee that consists of several Yemeni parties, SDRPY, the Yemeni Ministry of Finance, the Executive Body to Accelerate the Absorption of Donor Pledges, Aden Refineries Company, Yemen Petroleum Company , the General Electricity Corporation of Yemen, private sector, civil society and the media; noting that SDRPY has established a comprehensive governance to manage the Grant and prevent its misuse. Al-Huzaimi stressed that this grant is an extension of the previous grants provided by the Kingdom of Saudi Arabia to the Republic of Yemen with a total estimated to be USD 4.2 billion, and that the impact of providing the Saudi Oil Derivatives Grant to Yemen has saved 20% of the Yemeni government’s budget and raised the productive power of the Yemeni citizen. This will contribute to improving the services of vital sectors and the betterment of the lives of the citizens, who will be provided with electricity throughout the year, and will increase the Yemeni individual’s share of electricity consumption, especially in the summer months, which represent the peak of electrical consumption.

NEOM

• March 31, 2021, SPA

His Royal Highness Prince Mohammad bin Salman bin Abdulaziz, Crown Prince, Deputy Prime Minister and Minister of Defense, made a phone call on Tuesday to President Abdu Abd Rabbu Mansour Hadi of the Republic of Yemen. During the call, they discussed developments in Yemen, and international support for the Saudi initiative to end the Yemeni crisis and reach a comprehensive political solution. The Yemeni President reaffirmed his government support for the initiative and praised the Kingdom keenness to achieve lasting peace in Yemen and to establish security and stability.
In this regard, HRH the Crown Prince affirmed that the Kingdom will continue to stand with Yemen and alleviate the suffering of its citizens by providing a grant of oil derivatives amounting to $422 million from the Saudi Development and Reconstruction Program for Yemen, to operate power stations in the Yemeni governorates and as support for the Yemeni government to provide services to the Yemeni people and achieve security and stability.
The Yemeni President appreciated this generous support from the Kingdom government to support his government and the Yemeni people and alleviate their suffering. The two sides reviewed the Middle East Green Initiative, which aims, in partnership with the countries of the region, to face environmental challenges. The Yemeni President welcomed the initiative and expressed Yemen support for all efforts made by the Kingdom in this regard.