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.



Asharq Al-Awsat Uncovers New Details on Sinwar’s Movements During the Gaza Conflict

Yahya Sinwar 
Yahya Sinwar 
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Asharq Al-Awsat Uncovers New Details on Sinwar’s Movements During the Gaza Conflict

Yahya Sinwar 
Yahya Sinwar 

Reliable information from Asharq Al-Awsat sources within and close to Hamas reveals that Israel nearly captured the group's leader, Yahya Sinwar, at least five times before he was killed during a routine military operation in Rafah, southern Gaza, last month.

The sources described Sinwar's movements and those with him during the ongoing conflict in Gaza, which has lasted over a year. They noted that Sinwar sent a message to his family about the death of his nephew, Ibrahim Muhammad Sinwar, who was with him.

This message arrived two days after Sinwar was also killed.

Khan Younis Operation

During the Israeli military operation in Khan Younis in January, it was believed that Sinwar was hiding in one of the tunnels.

After entering several tunnels, Israeli forces found recordings from cameras showing Sinwar moving around and transferring supplies into a tunnel with his family just hours before the attack on Oct. 7, 2023, as well as on the day of the attack.

Despite this, Israel could not locate him in the tunnels or above ground. As the operation expanded, Sinwar had to find a safe place for his wife and children away from him due to the ongoing pursuit, according to reliable sources for Asharq Al-Awsat.

Sources report that Sinwar’s wife and children were safe, receiving written messages from him at least once a month.

As military operations intensified in Khan Younis, Sinwar chose to stay in the area, often separating from his brother Muhammad and Raef Salameh, the regional brigade commander who was killed in a July airstrike alongside Muhammad Deif, the leader of Hamas’s military wing.

They occasionally met in safe houses or tunnels since the conflict began.

The sources noted that the four did not remain together at all times; they spent hours or days together before parting based on the situation.

A closely guarded secret reveals that Israeli forces were just meters away from a house where Sinwar was hiding in Block G of Khan Younis, accompanied only by his personal bodyguard.

Sinwar was armed and ready for a potential Israeli raid.

However, the movements of Hamas fighters from house to house, as they demolished walls for street fighting, revealed Sinwar’s location.

He was quickly evacuated through gaps created by the fighters in neighboring homes and taken to a safe house about one kilometer away.

He was later moved to another location where he met his brother Muhammad and Salameh before they all separated as the Israeli operation expanded near the Nasser Medical Complex.

Sources say that in February, under pressure from his brother and Salameh, as well as Hamas fighters, Sinwar was forced to leave Khan Younis for Rafah. By then, Israeli forces had almost complete control over Khan Younis and had effectively tightened their siege.

However, Sinwar was safely transported to Rafah through coordinated movements above and below ground.

Sources indicate that the person who stayed with Sinwar throughout the conflict was Ibrahim Muhammad Sinwar, the son of his brother Muhammad, a senior Hamas leader.

Both Yahya and Muhammad named their firstborn sons after each other.

Ibrahim was killed in an Israeli airstrike in August while exiting a tunnel to monitor Israeli movements in Rafah, southern Gaza, alongside his uncle.

Sinwar sent a message to his brother’s family explaining the circumstances of Ibrahim’s death and detailing where he was buried in an underground tunnel, stating that he had personally prayed over his body.

The family received this message two days after Sinwar’s own death, indicating that it took more than two months for it to reach them.

The timing of the message, arriving just after Sinwar’s death, highlights the challenging security conditions he faced amid ongoing Israeli pursuit.

It also reflects the extreme precautions he took to avoid leaving any gaps that could lead Israel to him, which helps explain the circumstances of his “accidental” death.

Sources reveal that Sinwar stayed in Rafah for several months, moving between different areas, particularly in the western part since late May. He used both underground and above-ground shelters.

During his time away from his brother Muhammad, as well as Deif and Salameh, Sinwar communicated with them through written messages, following specific security protocols he defined.

This method also applied to his communications with Hamas leaders locally and abroad, especially regarding ceasefire negotiations and potential prisoner exchanges.

Sinwar was reportedly in tunnels in Rafah, including one where six prisoners were killed. It is believed he may have ordered their execution as Israeli forces advanced in late September.

Before his death, Sinwar and his companions experienced severe food shortages, going three days without eating while preparing for an Israeli confrontation. They moved between damaged buildings in the area.

In the final two weeks, attempts were made by Mahmoud Hamdan, the commander of the Tel Sultan brigade, who was killed the day after Sinwar, to extract him from the area. However, these efforts failed due to heavy military activity.

Sources indicate that Israeli forces came close to Sinwar’s location at least five times, including three times above ground and two underground.

Each time, he was moved to different locations despite wanting to remain with the fighting forces.

When asked if Sinwar’s presence in Rafah was related to assessing the Philadelphia corridor, sources denied this.

However, individuals close to Hamas suggested that he may have been considering a potential Israeli withdrawal from the corridor and its implications for prisoner exchange negotiations and the situation on the ground.

In related news, Hamas has issued a statement denying reports regarding the fate of Deif, the leader of the Izz ad-Din al-Qassam Brigades.

Earlier, Asharq Al-Awsat reported new indications of Deif’s death in an Israeli airstrike in Khan Younis in July. Despite these reports, Hamas officials continue to assert that Deif is alive, while Israeli officials claim he has been killed.