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MEOG COMMENTARY MEOG

Controversy as US firm signs

up to market Syrian crude

Little-known US firm Delta Crescent Energy has signed a controversial
deal to develop oilfields in north-east Syria with Washington’s support

SYRIA EMOTIONS ran high this week as reports AFP reported. Graham told Politico: “I think
emerged that little-known US firm Delta Cres- this company’s going to improve the viability of
cent Energy had agreed a development deal with the northern oilfields to make them more pro-
WHAT: the Washington-backed Syrian Democratic ductive … Conceptually it makes sense that we
The company’s directors Forces (SDF) for north-eastern oilfields under should, instead of just writing cheques, help peo-
have managed to obtain their control. ple help themselves.”
a sanctions waiver from The country’s Foreign Ministry released a Asked by Graham if the US was supportive
the US OFAC, allowing statement that described the deal as illegal and of the deal, Secretary of State Mike Pompeo said:
Delta Crescent to operate said that its intention was to steal Syrian crude. “We are. The deal took a little longer ... than we
in Syria. The ministry said that it “condemns in the had hoped, and now we’re in implementation.”
strongest terms the agreement signed between This should perhaps not come as a sur-
WHY: al-Qasd militia (SDF) and an American oil com- prise, given that in October last year, President
Oilfields in the region pany to steal Syria’s oil under the sponsorship Donald Trump told a news conference that he
had been held by Daesh and support of the American administration … intended to “make a deal with an ExxonMobil
and were then taken This agreement is null and void and has no legal or one of our great companies to go in there and
by US-backed Kurdish basis.” do it properly … and spread out the wealth.” He
rebel forces, which are Meanwhile, Turkey also expressed outrage received widespread condemnation when he
now looking to increase about the deal, with the Foreign Ministry accus- called for the US to “keep the oil” in return for
production. ing the US firm of “financing terrorism” by enter- bringing stability to Syria.
ing a deal with the SDF, which mostly comprises It is unlikely that this deal is really about Syr-
WHAT NEXT: the Syrian-Kurdish militia force YPG, which ian stability or Syrian hydrocarbon output, par-
Product flows are likely Turkey considers to be a terror group because ticularly given that a broad deal was previously
to head east into the of its links to the outlawed Kurdistan Workers’ signed between President Bashar al-Assad and
Kurdistan Region of Party (PKK). the Russian government for companies from the
northern Iraq. In a statement on August 3, Turkey’s For- latter to expand Syria’s energy industry, though
eign Ministry said: “We deeply regret the US progress on this has not yet been forthcoming.
support for this step, disregarding international
law, violating the territorial integrity, unity and Delta Crescent Energy
sovereignty of Syria. This act, which cannot The company at the centre of the furore is
be justified by any legitimate motive, is utterly obscure and appears to have little to no presence
unacceptable.” online or anywhere else. Multiple media reports
It added: “With this step, the PKK/YPG ter- stated that it is registered in the US state of Del-
rorist organisation has clearly demonstrated its aware, but beyond that, there is little available.
ambition to advance its separatist agenda by However, the company is run by a group
seizing the natural resources of the Syrian peo- of men who have operating, security and legal
ple. The natural resources of Syria belong to the experience and connections that would allow
Syrian people.” such a deal to take place.
John Dorrier is the founder and former CEO
Support of Gulfsands Petroleum, which operated the
However, the deal appears to have the backing 5,414-square km Block 26 PSC in north-east
of the US, and has received a sanctions waiver Syria until sanctions were imposed on the Assad
from the Treasury Department’s Office of For- administration.
eign Asset Control (OFAC). Senior Washington Meanwhile, Jim Reese founded controversial
officials have confirmed that a deal was signed to private security company TigerSwan, which has
“modernise” oilfields under its control. experience of working in Iraq. He was quoted by
US Senator Lindsey Graham, a long-time Fox News in 2018, saying of the US: “We own
supporter of the Syrian Kurds, told Congress the whole eastern part of Syria … That’s ours.
last week that he had spoken to SDF com- We can’t give that up.” Sources told Politico that
mander General Mazloum Abdi about the deal, Delta Crescent will operate under the protection

P4 www. NEWSBASE .com Week 31 05•August•2020