Yemen's oil company, Yemen Company for Investments in Oil and Minerals (YICOM) has signed an oil agreement with Mubadala Oil and Gas. This covers the areas of co-operation in the field of oil and gas exploration besides production in Yemen as well.

Signing of deal between the two state owned companies was done in Yemen and was done in the presence of Amir al Aydarus, the oil and minerals minister. The other thing that the firms are going to look after is the assessment of potential joint projects which would look after redevelopment and expansion of oil fields in Yemen.

This is important for the country since it has seen a decline in the output of oil and gas. Said Suhail al Mazrouei, the deputy chief executive of Mubadala Oil and Gas that Yemen has been able to create an attractive environment for investment both in the upstream as well as downstream activities.

Yemen is the poorest of the Arab region and has been seeing a decline in foreign revenue. This has happened because of political instability and lawlessness of the nation.