British Company Concerned over its Oil ‘Rights’ in Northeastern Syria

A US armored vehicle drives past an oilfield in the countryside of al-Qahtaniyah town in Syria's northeastern Hasakeh province near the Turkish border, on Aug. 4, 2020. (AFP)
A US armored vehicle drives past an oilfield in the countryside of al-Qahtaniyah town in Syria's northeastern Hasakeh province near the Turkish border, on Aug. 4, 2020. (AFP)
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British Company Concerned over its Oil ‘Rights’ in Northeastern Syria

A US armored vehicle drives past an oilfield in the countryside of al-Qahtaniyah town in Syria's northeastern Hasakeh province near the Turkish border, on Aug. 4, 2020. (AFP)
A US armored vehicle drives past an oilfield in the countryside of al-Qahtaniyah town in Syria's northeastern Hasakeh province near the Turkish border, on Aug. 4, 2020. (AFP)

British company Gulfsands Petroleum has distanced itself from the partnership agreement between the United States’ Delta Crescent Energy company and the Kurdish autonomous administration east of the Euphrates River in northeastern Syria.

Officials from the firm told Asharq Al-Awsat that they will “defend the company’s rights” to invest in oil in Block 26, which is located east of the Euphrates and believed to produce 20,000 barrels of oil per day.

Gulfsands had signed a deal with the Syrian government in 2003 to invest and develop Block 26. According to the agreement, two-thirds of production will go to the government after calculating costs. Since 2011, the block came under the control of the Kurdish People’s Protection Units (YPG) and later the Syrian Democratic Forces (SDF) due to the ongoing Syrian conflict and the American and European sanctions against the Damascus regime.

Officials from Gulfsands told Asharq Al-Awsat that more than 26 million barrels of oil have been produced from Block 26 in four years. The production was unlicensed and it is unknown who received the oil or the extent of the damage that has been inflicted on the field.

Gulfsands has invested more than 350 million dollars in Block 26, which experts estimate is worth billions of dollars.

American investment
Prior to the eruption of the conflict in 2011, Syria used to produce some 360,000 barrels of oil per day. Production has since dropped to around 60,000. Some 90 percent of its oilfields and half of its gas fields are controlled by the SDF, which is backed by the US-led anti-ISIS coalition.

In Aril, Delta Crescent Energy struck a deal with the autonomous administration to obtained a license from the US Treasury to operate in northeastern Syria seeing as the war-torn country’s oil sector is under American and European sanctions.

Delta Crescent Energy was established in the US state of Delaware in February 2019. Its partners include former US ambassador to Denmark James Cain, James Reese, a former officer in the Army’s elite Delta Force, and John Dorrier Jr., a former executive at GulfSands Petroleum, reported Politico in August.

In July, Republican Senator Lindsey Graham, who is close to President Donald Trump, declared before Congress that SDF chief Mazloum Abdi had informed him of the signing of an oil investment agreement with an American company. US Secretary of State Mike Pompeo said the administration supports the deal and said it is intended to “modernize” the oilfields. “The deal took a little longer ... than we had hoped, and now we’re in implementation,” he said.

The deal was, however, widely criticized by Damascus, Moscow, Tehran and Ankara. They slammed it as “political recognition of the Kurdish administration” and violation of the Astana agreement reached between Russia, Iran and Turkey. Washington defended the deal, saying: “Syrian oil is for the Syrian people and we remain committed to the unity and territorial integrity of Syria. The United States government does not own, control, or manage the oil resources in Syria. The populations in areas liberated from ISIS make their own decisions on local governance.”

Protecting oil
“The goal is to get the production back up to where it was before the civil war and sanctions,” said Ambassador Cain according to Politico.

“I think this company’s going to improve the viability of the northern oil fields to make them more productive,” Graham said. “Conceptually it makes sense that we should, instead of just writing checks, help people help themselves.”

In October 2019, Graham played a role in persuading Trump to keep American forces deployed east of the Euphrates River after he had announced that he wanted to pull back the troop to the border with Turkey. Trump later confirmed that a small number of forces will remain in oil-rich areas, stressing that the US has “secured and protected” the oil. Indeed, some 500 soldiers remain east of the Euphrates and they have been supplied with better military gear to protect the oilfields.

Many questions have been asked about the role the American military and administration are playing in the new oil deal. Pentagon spokesperson Jessica McNulty noted that the Department of Defense “does not have an affiliation with any private companies in regard to the oilfields in northeast Syria.” However, she added that US forces in the region are “securing critical petroleum infrastructure in northeast Syria to deny ISIS access to critical resources and revenue,” reported Politico. McNulty also noted that the oil resources "currently provide some of the funding necessary for the SDF to conduct operations" against ISIS.

Sovereign rights
The deal between the American company and autonomous administration calls for the establishment of at least two makeshift oil refineries in the region east of the Euphrates that can produce 20,000 barrels of oil per day. The production will meet some of the local demand.

Other sources, however, weighed the possibility that the deal could allow operators to expand their work and invest in other oilfields. This would raise concerns among other oil companies, including Gulfsands.

Officials at the firm said they were “surprised” with the deal that was struck between Delta Crescent Energy and the Kurdish administration. One official said Gulfsands continues to investigate the details of the agreement and was determined to “protect” its rights. Moreover, he said that the firm was not involved in politics, but hopes that peace and stability will be restored in Syria.

Gulfsands remains committed to its project in Syria and is determined to protect its rights in line with international laws, he added. The company has signed a binding agreement with a sovereign state and it expects that its rights be recognized, hoping that it will resume its work when conditions permit it.

On the other end of the divide, Kurdish officials defended their deal with Washington, saying it had political undertones seeing as it was signed directly between an American company and the autonomous administration without having to obtain the Syrian government’s approval.

“The political significance of the deal is important and is tantamount of recognition” of the autonomous authority, he explained. Furthermore, it eases concerns that the US may suddenly pull out its troops from the region east of the Euphrates.



Win the Vote but Still Lose? Behold America’s Electoral College

Voters head into a polling location to cast their ballots on the last day of early voting for the 2024 election on November 1, 2024 in Atlanta, Georgia. (Getty Images/AFP)
Voters head into a polling location to cast their ballots on the last day of early voting for the 2024 election on November 1, 2024 in Atlanta, Georgia. (Getty Images/AFP)
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Win the Vote but Still Lose? Behold America’s Electoral College

Voters head into a polling location to cast their ballots on the last day of early voting for the 2024 election on November 1, 2024 in Atlanta, Georgia. (Getty Images/AFP)
Voters head into a polling location to cast their ballots on the last day of early voting for the 2024 election on November 1, 2024 in Atlanta, Georgia. (Getty Images/AFP)

When political outsider Donald Trump defied polls and expectations to defeat Hillary Clinton in the 2016 US presidential election, he described the victory as "beautiful."

Not everyone saw it that way -- considering that Democrat Clinton had received nearly three million more votes nationally than her Republican rival. Non-Americans were particularly perplexed that the second-highest vote-getter would be the one crowned president.

But Trump had done what the US system requires: win enough individual states, sometimes by very narrow margins, to surpass the 270 Electoral College votes necessary to win the White House.

Now, on the eve of the 2024 election showdown between Trump and Democrat Kamala Harris, the rules of this enigmatic and, to some, outmoded, system is coming back into focus.

- Why an Electoral College? -

The 538 members of the US Electoral College gather in their state's respective capitals after the quadrennial presidential election to designate the winner.

A presidential candidate must obtain an absolute majority of the "electors" -- or 270 of the 538 -- to win.

The system originated with the US Constitution in 1787, establishing the rules for indirect, single-round presidential elections.

The country's Founding Fathers saw the system as a compromise between direct presidential elections with universal suffrage, and an election by members of Congress -- an approach rejected as insufficiently democratic.

Because many states predictably lean Republican or Democratic, presidential candidates focus heavily on the handful of "swing" states on which the election will likely turn -- nearly ignoring some large states such as left-leaning California and right-leaning Texas.

Over the years, hundreds of amendments have been proposed to Congress in efforts to modify or abolish the Electoral College. None has succeeded.

Trump's 2016 victory rekindled the debate. And if the 2024 race is the nail-biter that most polls predict, the Electoral College will surely return to the spotlight.

- Who are the 538 electors? -

Most are local elected officials or party leaders, but their names do not appear on ballots.

Each state has as many electors as it has members in the US House of Representatives (a number dependent on the state's population), plus the Senate (two in every state, regardless of size).

California, for example, has 54 electors; Texas has 40; and sparsely populated Alaska, Delaware, Vermont and Wyoming have only three each.

The US capital city, Washington, also gets three electors, despite having no voting members in Congress.

The Constitution leaves it to states to decide how their electors' votes should be cast. In every state but two (Nebraska and Maine, which award some electors by congressional district), the candidate winning the most votes theoretically is allotted all that state's electors.

- Controversial institution -

In November 2016, Trump won 306 electoral votes, well more than the 270 needed.

The extraordinary situation of losing the popular vote but winning the White House was not unprecedented.

Five presidents have risen to the office this way, the first being John Quincy Adams in 1824.

More recently, the 2000 election resulted in an epic Florida entanglement between Republican George W. Bush and Democrat Al Gore.

Gore won nearly 500,000 more votes nationwide, but when Florida -- ultimately following a US Supreme Court intervention -- was awarded to Bush, it pushed his Electoral College total to 271 and a hair's-breadth victory.

- True vote or simple formality? -

Nothing in the Constitution obliges electors to vote one way or another.

If some states required them to respect the popular vote and they failed to do so, they were subjected to a simple fine. But in July 2020, the Supreme Court ruled that states could impose punishments on such "faithless electors."

To date, faithless electors have never determined a US election outcome.

- Electoral College schedule -

Electors will gather in their state capitals on December 17 and cast votes for president and vice president. US law states they "meet and cast their vote on the first Tuesday after the second Wednesday in December."

On January 6, 2025, Congress will convene to certify the winner -- a nervously watched event this cycle, four years after a mob of Trump supporters attacked the US Capitol attempting to block certification.

But there is a difference. Last time, it was Republican vice president Mike Pence who, as president of the Senate, was responsible for overseeing the certification. Defying heavy pressure from Trump and the mob, he certified Biden's victory.

This time, the president of the Senate -- overseeing what normally would be the pro forma certification -- will be none other than today's vice president: Kamala Harris.

On January 20, the new president is to be sworn in.