Page 8 - MEOG Week 09

MEOG PIPELINES & TRANSPORT MEOG

Syrian gas pipeline attacked as tensions rise

SYRIA SYRIA’S Ministry of Petroleum and Mineral country of remaining IS forces and stopping the
Resources has reported that a gas pipeline in extremist group from acquiring oil assets.
the east of the country was attacked over the The Euphrates continues to be used as a
weekend, with no groups having yet claimed deconfliction line between the US and Russian
responsibility. interests, with the former holding positions to
The attack was carried out on the al-Jabsa-al- the east and the latter to the west.
Rayyan pipeline in the Abu Khashab area of Deir In 2019, the Syrian government awarded
Ezzor Province, which is home to much of the Blocks 7 and 19 covering oilfields east of the
country’s oil and gas reserves. Euphrates to Russian company Mercury, which
The ministry said that firefighters and main- is owned by Yevgeny Prigozhin, the founder of
tenance crews had worked to put out the fire the paramilitary Wagner Group, though US
and repair the line so that gas flows could be influence in the area is believed to have pre-
resumed. There were no casualties and gas flows vented any progress from being made.
have now resumed. London-based Asharq Meanwhile, fellow Russian firm Vilada was
al-Awsat reported that Islamic State (IS) sleeper awarded Block 23, which contains a gas field
cells are known to be active in the area and they north of Damascus, and it is worthy of note
have previously targeted government forces and that Block 12, which lies in north of Raqqa, was
the anti-government, US-backed Syrian Demo- awarded to directly to the Iranian government
cratic Forces (SDF). last year.
The attack follows a US air strike last week Little-known US firm Delta Crescent Energy
on Iranian-backed militia based in Al-Bukamal, (DCE) last year signed a deal with the Auton-
also in Deir Ezzor, which lies on the west bank of omous Administration of North and East Syria
the Euphrates river close to the border with Iraq. (Rojava) for the modernisation and develop-
22 people were killed as the US targeted the ment of oilfields, having acquired a sanctions
Iran-linked Hashd al-Shaabi group in the first waiver from the US Treasury Department’s
military action taken under the leadership of Office of Foreign Asset Control (OFAC).
President Joe Biden and. DCE co-founder Ambassador James Cain
The disclosure that the strike was aimed said recently that the assets covered by the deal
at an Iran-linked group raises questions over include “all the fields in the far north-east, but
the consistency of Washington’s approach to not those in the south near Deir Ezzor.” However,
Syria. Department of Defense officials have Middle East Oil & Gas (MEOG) understands that
said recently that the presence of US troops in the company’s efforts to kick off work in the area
Syria is to assist the SDF in ridding the east of the are also being stifled by logistic-related issues.™

Bids received for Aramco

pipeline stake lease

SAUDI ARABIA SAUDI Aramco is reported to have received bids bidders may join forces, with family-owned
from at least eight parties to lease a stake in the Saudi enterprises also considering making bids
company’s oil pipelines business. in partnership with investors.
Non-binding bids have been received from Middle East Oil & Gas (MEOG) understands
BlackRock, Canada-based Brookfield Asset that the deal would largely take the same form as
Management, Apollo Global Management, deals by Abu Dhabi National Oil Co. (ADNOC),
Global Infrastructure Partners (GIP), Chinese with Aramco leasing out a stake in its pipeline
state-backed Silk Road Fund Co. and China business for a period of 25 years and paying tar-
Investment Corp., with initial proposals also iffs to use the infrastructure during that time.
submitted by Saudi and Emirati pension funds, Aramco’s oil pipelines include the massive East-
according to sources close to proceedings quoted West Pipeline that is currently being upgraded to
by Bloomberg. increase capacity from 5mn to 7mn barrels per
Aramco is now understood to be assessing day (bpd).
these bids for ‘Project Seek’ before creating a In October, it was reported that BlackRock
shortlist and inviting those firms to make bind- was in talks to acquire the stake, with nego-
ing offers. tiations understood to have been carried out
Bloomberg’s sources added that qualified between Aramco and a group of local banks

P8 www. NEWSBASE .com Week 09 03•March•2021