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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)
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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.

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Jamal Mustafa: Saddam Said ‘Qassim Was Honest, But the Party Ordered His Assassination’

Jamal Mustafa Sultan.
Jamal Mustafa Sultan.
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Jamal Mustafa: Saddam Said ‘Qassim Was Honest, But the Party Ordered His Assassination’

Jamal Mustafa Sultan.
Jamal Mustafa Sultan.

Jamal Mustafa Sultan, Saddam Hussein’s son-in-law and former deputy secretary, recalled how the late Iraqi president viewed former Prime Minister Abdul Karim Qassim as an honorable and brave man even though he was involved on an attempt on his life.

In the third installment of his interview to Asharq Al-Awsat, Mustafa said: “In 1959, a fateful decision by Iraq’s Baath Party, led by Fuad al-Rikabi, changed the course of a young man’s life. The party planned a bold attempt to assassinate Iraqi leader Abdul Karim Qassim on Oct. 7.”

When a team member dropped out shortly before the operation, Saddam, then a little-known young man, was brought in. During the ambush on Al-Rashid Street in Baghdad, Qassim was slightly injured, and Saddam was wounded by shrapnel in his leg, said Mustafa.

After the failed attempt, al-Rikabi and other senior Baath members, including Hazem Jawad and Ali Saleh al-Saadi, fled to Syria. There, al-Rikabi kept asking about Saddam until he learned that Saddam had also escaped, organizing his secret journey to Syria on his own.

Hazem Jawad, a key Baath Party leader, recalled the moment Saddam Hussein became a full party member. In a small underground apartment in Damascus, Fuad al-Rikabi led a meeting with several party members, including himself, Ali Saleh al-Saadi, and Medhat Ibrahim Juma. “Fuad praised Saddam, calling him courageous and loyal, and proposed accepting him as a full member. We all agreed,” said Jawad, according to Mustafa.

“Saddam, a tall young man with piercing eyes and dark skin, stood before us. Fuad recited the party oath, and Saddam repeated it, officially joining the Baath Party,” he continued.

“We spent the next two hours talking over tea and cake. Before leaving, Fuad announced his trip to Cairo. Saddam also asked for permission to go to Egypt to continue his law studies. We approved, as it wasn’t safe to return him to Iraq after his involvement in the assassination attempt on Abdul Karim Qassim,” recounted Mustafa.

Saddam’s respect for Qassim

It’s uncommon for a leader to praise a predecessor who survived an assassination attempt against them, but Saddam did just that. Mustafa shared the story during a meeting.

“President Qassim, may God have mercy on him, was brave and honest,” Saddam said, according to Mustafa. “I respect him for serving Iraq with integrity.”

“We were young and impulsive. We didn’t think about the reasons behind the operation or what might happen afterward. We didn’t even consider who could replace Qassim if he were gone.”

When told that Qassim’s sister was his only surviving family member, Saddam instructed that she be given a car and financial support.

Saddam also treated former President Abdul Rahman Arif with respect, despite efforts to tarnish his legacy. Mustafa noted that campaigns to smear Arif were part of a broader attempt to justify Iraq’s invasion and undermine its independence. He urged historians to seek the truth and challenge false narratives.

Abdul Karim Qassim. (Getty Images)

Mustafa's reflection on Saddam

When asked if Saddam had made mistakes, Mustafa replied: “Mr. President worked for Iraq’s progress. Like anyone, he sometimes got things right and sometimes wrong, but his goal was always to elevate the country.”

“He had no interest in wealth. Over 20 years, investigators searched for assets linked to him—land, money, anything—but found nothing. Even his political opponent, Iyad Allawi, confirmed this. Saddam was strict about protecting public funds, and this extended to his children as well,” he added.

He also criticized the current government, accusing it of seizing land and displacing Iraqis.

“They’ve taken properties from displaced residents and given them to foreigners, including Iranians, Pakistanis, and Afghans. Areas like Jurf al-Sakhar and Al-Awja have been emptied, with residents banned from returning. Some lands are controlled by foreign military intelligence, impacting not just Iraq but the region. Christians have also lost properties to militias,” noted Sultan.

He shared his own losses: “My family’s land, passed down for generations, was confiscated. An orchard over 250 years old and another property from my great-grandfather, over 200 years old, were taken simply because we’re linked to the former regime. Even if a child in our family registers property now, it’s immediately seized.”

He added: “My family and others have lost everything. While some managed to sell or keep a few properties, all of ours were taken.”

Criticism of Moqtada al-Sadr, Iraq's sectarian divide

Mustafa expressed disappointment in Shiite cleric Moqtada al-Sadr after the fall of Saddam’s regime.

“Moqtada knows the truth about who killed his father. He attended investigation meetings and knows the details. His father, Mohammad al-Sadr, had influence and even criticized the regime in Friday sermons. Despite warnings, he refused official protection before his assassination,” he said.

On claims that Saddam’s government was Sunni-dominated, Mustafa disagreed.

“At that time, we were all Iraqis. There was no emphasis on Sunni, Shiite, or Christian identities. Our shared Iraqi identity came first, and positions in the government, military, or party were based on merit. For example, Tariq Aziz, a Christian, held top roles, including foreign minister and deputy prime minister. Sectarianism wasn’t a factor,” he said.

He criticized the current leadership, accusing it of destroying Iraq’s unity.

“Today’s politics aim to change Iraq’s demographics and weaken the country. Millions of Iraqis have been displaced, not just one group but people from all regions. Over 10 million now live abroad. This isn’t a coincidence—it’s a deliberate effort to break Iraq’s unity and control its future,” noted Mustafa.

Returning to Iraq

When asked if he hopes to return to Iraq, Mustafa said: “Since 2003, all the governments in Iraq have been installed by the US occupation and are aligned with Iran to further its agenda in the region, even through militias in Iraq, Syria, Lebanon and Yemen. After the occupation began, Iran-backed militias targeted Iraq’s scientists, doctors and pilots, which led to over 10 million Iraqis fleeing the country. The human cost of this is immense and unacceptable.”

He told Asharq Al-Awsat: “Of course, I want to return to Iraq. Every patriotic Iraqi who loves their country wants to return. It’s just a matter of time. We hope, God willing, that Iraq will be liberated and strong again, and when that happens, my family and I will be among the first to return.”

Mustafa also criticized Iran’s growing influence in the region: “People here are talking about Iran’s control over four Arab capitals: Beirut, Damascus, Baghdad and Sanaa. These countries are falling apart, with militias making the decisions, not governments. The policies being followed harm these nations’ interests and their Arab identity.”

He said Saddam quickly recognized a broader plot to destabilize Iraq and the region.

“Saddam saw Iraq as a barrier to a project aimed not only at Iraq, but at the entire Arab world, threatening their existence and role,” he said.

Mustafa also blamed Iran for starting the Iraq-Iran war, citing Tehran’s clear policy of exporting its revolution, as stated in its constitution.

When asked about reports that Iraqi intelligence proposed assassinating Iran's Supreme Leader Khomeini during his stay in Baghdad, Mustafa confirmed it but explained why Saddam rejected the idea.

“Saddam was a noble and honorable man. He would never allow harm to come to a guest, especially through betrayal. He would never consider or permit such a thing.”