The oil port with an initial capacity of 500,000 tons of oil is slated to be set up in As-Salif district in Hodeida, the Arabic language al-Akhbar newsaper reported.
The capacity of the port will rise to one million tons in the next phase, according to the report.
In line with efforts to set up the oil port, an agreement has been signed between the Yemen Oil and Gas Corporation and the country’s land affair organization.
According to the agreement, a land with an area of over three million square meters will be given to the Yemen Oil and Gas Corporation to construct the $100 million project.
The decision came as Saudi Arabia's deadly air campaign against Yemen has continued unabated for months.
On March 26, Riyadh and some of its Arab allies began to launch deadly airstrikes against the Houthi Ansarullah movement in an attempt to restore power to the fugitive former President Abd Rabbuh Mansour Hadi, a close ally of Riyadh.
According to a civil coalition monitoring Saudi Arabia's crimes, 3043 people, including 722 children and 532 women, have been killed during 95 days of Saudi-led military strikes on the Arab country.