Page 9 - MEOG Week 17 2022

MEOG PROJECTS & COMPANIES MEOG

Gulfsands remains optimistic

on Syria despite oil ‘theft’

SYRIA UK-BASED Gulfsands Petroleum remains opti- 70,000-80,000 bpd, with a “significant propor-
mistic about the potential for Syria to reinvigor- tion […] transported to the Kurdistan Regional
ate its oil sector following its ravaging by 11 years Government and possibly onto international
of civil conflict and sanctions that continue to markets via Turkey”.
prevent the legal resumption of operations. When asked about the impact of US firm
Speaking in an interview with The Syria Delta Crescent Energy (DCE) being awarded
Report this week, Gulfsands managing director a one-year sanctions waiver from Washing-
John Bell said that his company remains com- ton’s Office of Foreign Assets Control (OFAC)
pliant with European Union and US sanctions, Bell said he remained concerned “about illegal
having declared force majeure on its Block 26 in production from Block 26”, though the licence
the north-east of the country in 2011. expired in May and only a 30-day renewal was
“Gulfsands will return to operations in Syria provided.
only when it is legal and safe to do so, which In February, Syria’s Ministry of Petroleum
would include all applicable sanctions hav- and Mineral Resources revealed that the coun-
ing been lifted or waivers or other equivalent try’s oil sector has lost more than $100bn since
approvals received. We have proactively pur- 2011. Over the period, the ministry said that
sued an open and constructive relationship with the total combined losses amount to $100.5bn,
the governments and authorities responsible for without providing clarity over whether this fig-
their implementation,” he said. ure relates to damage to infrastructure, loss of
However, “oil from Block 26, a field con- revenues or both.
tracted to Gulfsands under Syrian and interna- From the country’s proven reserves of 2.5bn
tional law, is being produced illegally by other barrels of oil and 241bn cubic metres of gas, oil
actors”, he noted. production was running at around 375,000-
He added that the assets are being managed 400,000 barrels per day (bpd) and gas at around
and controlled by the Syrian Democratic Coun- 35mn cubic metres per day before civil war
cil (SDC)/Syrian Democratic Forces (SDF) and broke out in 2011.
its affiliates, including Al-Jazeera Oil Co. The ministry said that during 2021, oil output
Bell said that Block 26 has been producing averaged 85,900 bpd, of which only 16,000 bpd
around 20,000 barrels per day (bpd, 37mn bar- reached the country’s refineries, alleging that the
rels cumulative) since early 2017, worth around remainder was being “stolen by the US occupa-
$2.5bn, which is “sold through an opaque pro- tion forces and their mercenaries from the occu-
cess”. He added that Syria’s General Petroleum pied fields in the eastern region”.
Corp. (GPC) considers this production as Meanwhile, a Russian Foreign Intelligence
“stolen”. Service report on February 8 said: “Washington
He cited public reports that suggest fields is still actively involved in the illegal trade in oil
in north-east Syria are producing around from the occupied territories of north-east Syria.

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