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Labour action halts Yemen's crude output

By Saeed Al Batati, Correspondent

Published 00:00 13 February 2012

Workers want end-of-service allowances but Sana'a unable to meet their demands, official says

Sana'a: A strike at Yemen's main oilfield in the eastern province of Hadramout has brought the country's meagre oil production to a halt for four days, a Ministry of Oil official told Gulf News.

At least 1,000 workers employed by Yemen PetroMasila forced production at Block 14 Masila, which accounts for 160,000 barrels of oil a day, to grind to a halt. Yemen established the Masila Company for Petroleum Exploration and Production (PetroMasila) at Block 14 in the Masila area, Hadramout province, in November, to replace Canadian Nexen.

The workers said the government had not paid them their end-of-service allowances and other financial commitments associated with Canadian Nexen.

"The workers' demands are legitimate and they cashed in on the current critical situation to pressure the Ministry of Oil to pay their dues," the official said.

The official said that the ministry was not in a position to meet the demands.

"It amounts to almost $60 million (Dh220.3 million). As the government is having a cash crunch, I do not think it will be able to pay the dues now."

Abdul Baker Bu Saimar, deputy head of the workers' union, said that when Canadian Nexen handed over the block to the new company, they were promised their end-of-service allowances.

"The Minister of Oil promised to pay us our allowances. We also demand that our salaries to be on a par with workers in the other oil companies in the province like Total, DOVE and DNO," he added.