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.



What to Know about the Ceasefire Deal between Israel and Lebanon's Hezbollah

People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
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What to Know about the Ceasefire Deal between Israel and Lebanon's Hezbollah

People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir
People gather as cars drive past rubble from damaged buildings in Beirut's southern suburbs, after a ceasefire between Israel and Iran-backed group Hezbollah took effect at 0200 GMT on Wednesday after US President Joe Biden said both sides accepted an agreement brokered by the United States and France, in Lebanon, November 27, 2024. REUTERS/Mohamed Azakir

A ceasefire deal that went into effect on Wednesday could end more than a year of cross-border fighting between Israel and Lebanon's Hezbollah militant group, raising hopes and renewing difficult questions in a region gripped by conflict.
The US- and France-brokered deal, approved by Israel late Tuesday, calls for an initial two-month halt to fighting and requires Hezbollah to end its armed presence in southern Lebanon, while Israeli troops are to return to their side of the border. It offers both sides an off-ramp from hostilities that have driven more than 1.2 million Lebanese and 50,000 Israelis from their homes.
An intense bombing campaign by Israel has left more than 3,700 people dead, many of them civilians, Lebanese officials say. Over 130 people have been killed on the Israeli side.
But while it could significantly calm the tensions that have inflamed the region, the deal does little directly to resolve the much deadlier war that has raged in Gaza since the Hamas attack on southern Israel in October 2023 that killed 1,200 people.
Hezbollah, which began firing scores of rockets into Israel the following day in support of Hamas, previously said it would keep fighting until there was a stop to the fighting in Gaza. With the new cease-fire, it has backed away from that pledge, in effect leaving Hamas isolated and fighting a war alone.
Here’s what to know about the tentative ceasefire agreement and its potential implications:
The terms of the deal
The agreement reportedly calls for a 60-day halt in fighting that would see Israeli troops retreat to their side of the border while requiring Hezbollah to end its armed presence in a broad swath of southern Lebanon. President Joe Biden said Tuesday that the deal is set to take effect at 4 a.m. local time on Wednesday (9 p.m. EST Tuesday).
Under the deal, thousands of Lebanese troops and U.N. peacekeepers are to deploy to the region south of the Litani River. An international panel led by the US would monitor compliance by all sides. Biden said the deal “was designed to be a permanent cessation of hostilities.”
Israel has demanded the right to act should Hezbollah violate its obligations, but Lebanese officials rejected writing that into the proposal. Israeli Prime Minister Benjamin Netanyahu said Tuesday that the military would strike Hezbollah if the UN peacekeeping force, known as UNIFIL, does not enforce the deal.
Lingering uncertainty
Hezbollah indicated it would give the ceasefire pact a chance, but one of the group's leaders said the group's support for the deal hinged on clarity that Israel would not renew its attacks.
“After reviewing the agreement signed by the enemy government, we will see if there is a match between what we stated and what was agreed upon by the Lebanese officials,” Mahmoud Qamati, deputy chair of Hezbollah’s political council, told the Qatari satellite news network Al Jazeera.
“We want an end to the aggression, of course, but not at the expense of the sovereignty of the state” of Lebanon, he said.
The European Union’s top diplomat, Josep Borrell, said Tuesday that Israel’s security concerns had been addressed in the deal.
Where the fighting has left both sides After months of cross-border bombings, Israel can claim major victories, including the killing of Hezbollah’s top leader, Hassan Nasrallah, most of his senior commanders and the destruction of extensive militant infrastructure.
A complex attack in September involving the explosion of hundreds of walkie-talkies and pagers used by Hezbollah was widely attributed to Israel, signaling a remarkable penetration of the militant group.
The damage inflicted on Hezbollah has hit not only in its ranks, but the reputation it built by fighting Israel to a stalemate in the 2006 war. Still, its fighters managed to put up heavy resistance on the ground, slowing Israel’s advance while continuing to fire scores of rockets, missiles and drones across the border each day.
The ceasefire offers relief to both sides, giving Israel’s overstretched army a break and allowing Hezbollah leaders to tout the group’s effectiveness in holding their ground despite Israel’s massive advantage in weaponry. But the group is likely to face a reckoning, with many Lebanese accusing it of tying their country’s fate to Gaza’s at the service of key ally Iran, inflicting great damage on a Lebanese economy that was already in grave condition.
No answers for Gaza Until now, Hezbollah has insisted that it would only halt its attacks on Israel when it agreed to stop fighting in Gaza. Some in the region are likely to view a deal between the Lebanon-based group and Israel as a capitulation.
In Gaza, where officials say the war has killed more than 44,000 Palestinians, Israel’s attacks have inflicted a heavy toll on Hamas, including the killing of the group’s top leaders. But Hamas fighters continue to hold scores of Israeli hostages, giving the militant group a bargaining chip if indirect ceasefire negotiations resume.
Hamas is likely to continue to demand a lasting truce and a full Israeli withdrawal from Gaza in any such deal, while Netanyahu on Tuesday reiterated his pledge to continue the war until Hamas is destroyed and all hostages are freed.
Palestinian Authority President Mahmoud Abbas, whose forces were ousted from Gaza by Hamas in 2007 and who hopes to one day rule over the territory again as part of an independent Palestinian state, offered a pointed reminder Tuesday of the intractability of the war, demanding urgent international intervention.
“The only way to halt the dangerous escalation we are witnessing in the region, and maintain regional and international stability, security and peace, is to resolve the question of Palestine,” he said in a speech to the UN read by his ambassador.