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The September 11 attacks on the U.S. are believed to be linked to the USS Cole bombing, which may implicate Yemeni government officials in a conspiracy with Osama bin Laden. One of the hijackers was a Yemeni citizen, and Yemeni authorities are not allowing FBI investigators to interview government leaders.

Conflicting allegations are being made regarding five Britons who have been detained in Yemen. Supporters and relatives of the men claim that the UK government is handling the situation incompetently. Three of the detainees claim that they have been tortured, and if these claims are upheld and the men released, there are likely to be stronger allegations that the UK government should have taken firmer action sooner. Counter-claims indicate that the detainees have been involved in plotting terrorist activity.

North Yemen forces are seeking to capture Aden where the number of civilian casualties of the conflict is rising. Water, food and medical supplies are also becoming scarce. North Yemen forces had said they would not bomb towns or utilities, but they have been bombed, increasing the number of refugees in Aden and affecting essential supplies of fuel and water. Aden civilians are using water from wells in the street and from tanker trucks, while shelling of the city hinders repair of the water system.

Southen Yemen rulers have elected Ali Salem al-Beidh as the new Yemeni state president, in opposition to Ali Abdullah Saleh, ruler of north Yemen. The new presidential council aims for unity against attempts by the north, and to unite previous rivals in non-partisan backing for the new state, the Democratic Republic of Yemen, which was announced on May 21 1994. Saleh, meanwhile, has resumed attacks on Aden in the south, which the north is seeking to capture.

The cicil war in Yemen has led to a rift in communications between south and north, with Radio Aden no longer functioning. Travel between north and south is possible, but fraught with difficulty, due to military checkpoints and armed tribesmen. Rates for journeys by taxi have risen due to the war, and delays may be caused by searches at checkpoints. Each side denies reports that battles have taken place, with the north denying southern bombers had attacked Mareb oilfields, and the south denying that northern jets had bombed Ataq airport.

Yemen was moving toward modernity, democracy and reunification between North and South, but civil war has ended this progress. The north had lower debts and more assets at the start of unification, though imports were rising rapidly, and migrants' remittances were falling. Political assassinations dogged progress toward reunification, and there were fears that the north would simply take over the south. These fears have now erupted into civil war.

New oil finds in Yemen are generally becoming smaller, but oil companies remain optimistic about the potential finds there. Exploration budgets are being hit by depressed oil prices, and as the prospects of big finds decline, oil firms will have to adjust their exploration programmes gradually. Future efforts will focus on smaller finds near existing facilities, to make the exploration commercially viable. However, the current production-sharing accords with the government of Yemen could make even modest projects uneconomical.

Canadian Occidental Petroleum (Canadian Oxy) has opened its new Masila oil fields, Yemen, to expand Yemen's oil output 60% to more than 300,000 barrels per day (b/d). The fields are producing 120,000 b/d, with further discoveries possible. Canadian Oxy has only explored around 20% of its 37,200 sq km concession area, with the company having increased its estimate of recoverable reserves in the explored north-west area to 460 million barrels. Canadian Oxy will take 30% of the liftings and the Yemen government 70%, dramatically boosting Yemen's export earnings and currently weak economy.

The two main parties of Yemen, the General People's Congress and the Yemen Socialist party, are expected to receive strong support in the general election held on Apr 27, 1993. It is the first general election in the unified country, but it is alleged that unfair practices have been used and the vote will not be fair. The votes cannot be cast secretly, as 80% of the population are illiterate and need help to write the candidate's name on the ballot form. Other parties which may be included in the ruling coalition are Islamists, Hashid and Ba'ath.

The oil industry in the former communist state of Yemen has been opened up to outsiders to exploit its reserves. North and South Yemen were reunited in 1990 and the country has sold oil rights for $700 million. Yemeni oil is of high quality, needing little refinement, which has led to intense bidding on the international market for exploitatation rights. The money will improve the quality of life in one of the world's poorest countries.