News - Yemen: The Governor of Hadhramaut, Luqman Baras, affirmed that the construction of two small oil refineries by the Saudi-backed government in the cities of Mukalla and Shihr in Hadhramaut province is part of their ongoing efforts to loot the country's wealth.

Governor Baras explained that the establishment of these refineries is part of a dangerous strategy by the mercenaries to continue exploiting the province's oil resources for the benefit of external parties, similar to the US plundering of Syria's oil resources.

He described this move as an attempt to circumvent Sana'a's decision to halt the looting and export of oil unless its revenues are allocated to paying salaries and serving the local population.

Governor Luqman also condemned the repeated Emirati attacks on fishermen in Hadhramaut, including harassment and depriving them of their only source of livelihood, which is fishing.

Significantly, these facilities were established after Sana'a forces halted oil exports from the Dhabba port in October 2022. Local authorities and the oil company in Southern occupied areas have faced accusations of depleting Hadhramaut's wealth and managing it unlawfully, amid popular demands for a transparent investigation to hold those involved accountable.

The Presidency of the Saudi-backed government approved on March 24, 2023, the licensing of a refinery for oil derivatives, storage tanks, and a free industrial zone in the Dhabba area of Hadhramaut Governorate. The relevant ministries were instructed to coordinate with local authorities and take the necessary measures for implementation.

Reports in November 2023 revealed significant violations in the agreement to establish the Dhabba refinery in Hadhramaut. Economic sources highlighted critical flaws, such as the absence of specifications for capital, economic feasibility studies, technical assessments, and engineering and marine surveys. Despite this, the company is reportedly demanding compensation of $233 million to cover capital costs, feasibility studies, and facilities it received from the Korean Export-Import Bank.

On November 20, 2023, the Yemen Eco website published a report, supported by official documents, exposing a corruption scandal involving the Saudi-backed government and the UAE-backed Transitional Council. The scandal involved granting an Emirati company sovereign investment privileges, including constructing an oil refinery in Hadhramaut. The company was also given land spanning 3.861 million square meters free of charge, which it received on June 1, 2023.

The documents indicated that the land transfer was directed by a Cabinet resolution on May 21, 2023. The investor, Maliha Investment and Project Development Company, was allocated the land to establish a refinery with an initial daily production capacity of 25,000 barrels. The project also includes sufficient storage tanks, an industrial zone to connect ships via a maritime line, and facilities for associated production and service activities, as well as a free industrial zone in the same area.