Saleh, al-Ahmar, Arcadia Petroleum and the Civil War in Yemen

Anti-government protesters shout slogans while holding a defaced portrait of Yemen's President Ali Abdullah Saleh during a demonstration demanding his ouster in Sanaa June 4, 2011.

As the violence in Yemen continues to escalate and the U.S. Commodity Futures Trading Commission (CFTC) probe reveals more about Arcadia Petroleum’s role in securing oil contracts in Yemen, one cannot help but wonder if there exists a more than just tenuous connection between the two high-profile events.

Bitter tensions between Saleh supporters and his defectors–the Al-Ahmar, Hashed, and Sanha camps–have fueled Yemen’s political crisis:

The CFTC’s recent allegations that Arcadia colluded with Yemeni multibillionaire Hamid al-Ahmar in order to receive uncompetitive oil bids coincides with the fomenting civil conflict in Yemen. A leaked September 2009 State Department cable says that:

an internal government shift in control over the country’s valuable oil exports, meant to open up oil bidding to more international buyers, threatened Arcadia’s sway over Yemen’s exports.

It also put at risk an alliance between Arcadia and its “local agent” in Yemen, tribal leader Hamid al-Ahmar, the cable says. Arcadia, in an interview, denied the allegations in the cable, saying it did not employ al-Ahmar as an agent, although it did work with some of his companies in the oil trading business. The company said it always paid official market prices for Yemen’s export oil.

But even if there might be no real relation whatsoever with Saleh’s refusal to relinquish his power and the “internal government shift in control” of the country’s oil resources, the international community cannot ignore the growing humanitarian crisis in Yemen as violence escalates, water resources deplete, and oil revenue remains misappropriated.

21 thoughts on “Saleh, al-Ahmar, Arcadia Petroleum and the Civil War in Yemen

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  11. Four months later and the violence continues with the international community doing little to stop it. I am sure there is enough petroleum in Yemen to make those in power rich-but it does not seem to be enough supply to warrant the attention of governments and the cost of intervention. I hope the suffering in Yemen stops soon.

  12. But what makes Yemen (or even Syria) that much different than what’s happening and what’s happened in Libya? I think the international community (mostly Western countries) had invested much more in developing the infrastructure in Libya and had expected to gain more from what they had put into it. Unfortunately for the Gaddafi regime, they overestimated their power. But after all, Libya was once an Italian colony. Yemen or Syria don’t have the kind of historical ties with Europe that Libya did with Italy. But alas, may God be with those in Yemen.

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