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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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Israel’s Path of Destruction in Southern Lebanon Raises Fears of an Attempt to Create a Buffer Zone

This Oct. 24 2024, satellite image from Planet Labs PBC shows the village of Ramyah in southern Lebanon. (Planet Labs PBC via AP)
This Oct. 24 2024, satellite image from Planet Labs PBC shows the village of Ramyah in southern Lebanon. (Planet Labs PBC via AP)
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Israel’s Path of Destruction in Southern Lebanon Raises Fears of an Attempt to Create a Buffer Zone

This Oct. 24 2024, satellite image from Planet Labs PBC shows the village of Ramyah in southern Lebanon. (Planet Labs PBC via AP)
This Oct. 24 2024, satellite image from Planet Labs PBC shows the village of Ramyah in southern Lebanon. (Planet Labs PBC via AP)

Perched on a hilltop a short walk from the Israeli border, the tiny southern Lebanese village of Ramyah has almost been wiped off the map. In a neighboring village, satellite photos show a similar scene: a hill once covered with houses, now reduced to a gray smear of rubble.

Israeli warplanes and ground forces have blasted a trail of destruction through southern Lebanon the past month. The aim, Israel says, is to debilitate the Iran-backed Hezbollah armed group, push it away from the border and end more than a year of Hezbollah fire into northern Israel.

Even United Nations peacekeepers and Lebanese troops in the south have come under fire from Israeli forces, raising questions over whether they can remain in place.

More than 1 million people have fled bombardment, emptying much of the south. Some experts say Israel may be aiming to create a depopulated buffer zone, a strategy it has already deployed along its border with Gaza.

Some conditions for such a zone appear already in place, according to an Associated Press analysis of satellite imagery and data collected by mapping experts that show the breadth of destruction across 11 villages next to the border.

The Israeli military has said the bombardment is necessary to destroy Hezbollah tunnels and other infrastructure it says the group embedded within towns. The blasts have also destroyed homes, neighborhoods and sometimes entire villages, where families have lived for generations.

Israel says it aims to push Hezbollah far enough back that its citizens can return safely to homes in the north, but Israeli officials acknowledge they don’t have a concrete plan for ensuring Hezbollah stays away from the border long term. That is a key focus in attempts by the United States to broker a ceasefire.

Orna Mizrahi, a senior researcher at Israel’s Institute for National Security Studies, said Israel's immediate aim is not to create a buffer zone — but that might change.

“Maybe we’ll have no other choice than staying there until we have an arrangement that promises us that Hezbollah will not come back to the zone,” she said.

A path of destruction

Troops pushed into southern Lebanon on Oct. 1, backed by heavy bombardment that has intensified since.

Using satellite images provided by Planet Labs PBC, AP identified a line of 11 villages — all within 4 miles (6.5 kilometers) of Lebanon's border with Israel — that have been severely damaged in the past month, either by strikes or detonations of explosives laid by Israeli soldiers.

Analysis found the most intense damage in the south came in villages closest to the border, with between 100 and 500 buildings likely destroyed or damaged in each, according to Corey Scher of CUNY Graduate Center and Jamon Van Der Hoek of Oregon State University, experts in damage assessments.

In Ramyah, barely a single structure still stands on the village’s central hilltop, after a controlled detonation that Israeli soldiers showed themselves carrying out in videos posted on social media. In the next town over, Aita al-Shaab — a village with strong Hezbollah influence — bombardment turned the hilltop with the highest concentration of buildings into a gray wasteland of rubble.

In other villages, the damage is more selective. In some, bombardment tore scars through blocks of houses; in others, certain homes were crushed while their neighbors remained intact.

Another controlled detonation leveled much of the village of Odeissah, with an explosion so strong it set off earthquake alerts in Israel.

In videos of the blast, Lubnan Baalbaki, conductor of the Lebanese Philharmonic Orchestra, watched in disbelief as his parents’ house — containing the art collection and a library his father had built up for years — was destroyed.

“This house was a project and a dream for both of my parents,” he told the AP. His parents’ graves in the garden are now lost.

When asked whether its intention was to create a buffer zone, Israel’s military said it was “conducting localized, limited, targeted raids based on precise intelligence" against Hezbollah targets. It said Hezbollah had “deliberately embedded” weapons in homes and villages.

Israeli journalist Danny Kushmaro even helped blow up a home that the military said was being used to store Hezbollah ammunition. In a television segment, Kushmaro and soldiers counted down before they pressed a button, setting off a massive explosion.

Videos posted online by Israel’s military and individual soldiers show Israeli troops planting flags on Lebanese soil. Still, Israel has not built any bases or managed to hold a permanent presence in southern Lebanon. Troops appear to move back and forth across the border, sometimes under heavy fire from Hezbollah.

October has been the deadliest month of 2024 for the Israeli military, with around 60 soldiers killed.

Attacks on UN peacekeeping troops and the Lebanese Army

The bombardment has been punctuated by Israeli attacks on UN troops and the Lebanese Army — forces which, under international law, are supposed to keep the peace in the area. Israel has long complained that their presence has not prevented Hezbollah from building up its infrastructure across the south.

Israel denies targeting either force.

The Lebanese military has said at least 11 of its soldiers were killed in eight Israeli strikes, either at their positions or while assisting evacuations.

The peacekeeping force, known as UNIFIL, said its forces and infrastructure have been harmed at least 30 times since late September, blaming Israeli military fire or actions for about 20 of them, “with seven being clearly deliberate.”

A rocket likely fired by Hezbollah or an allied group hit UNIFIL’s headquarters in Naqoura on Tuesday, causing some minor injuries, said UNIFIL spokesperson Andrea Tenenti.

UNIFIL has refused to leave southern Lebanon, despite calls by Israeli Prime Minister Benjamin Netanyahu for them to go.

Experts warn that could change if peacekeepers come under greater fire.

“If you went from the UN taking casualties to the UN actually taking fatalities,” some nations contributing troops may “say ‘enough is enough,’ and you might see the mission start to crumble,” said Richard Gowan of the International Crisis Group.

The future of the territory is uncertain

International ceasefire efforts appear to be centered on implementing UN Resolution 1701, which ended the 2006 Israel-Hezbollah war.

It specified that Israeli forces would fully withdraw from Lebanon while the Lebanese army and UNIFIL — not Hezbollah — would be the exclusive armed presence in a zone about 25 kilometers (15 miles) from the border.

But the resolution was not fully implemented. Hezbollah never left the border zone, and Lebanon accuses Israel of continuing to occupy small areas of its land and carrying out frequent military overflights above its territory.

During a recent visit to Beirut, US envoy Amos Hochstein said a new agreement was needed to enforce Resolution 1701.

Israel could be trying to pressure an agreement into existence through the destruction wreaked in southern Lebanon.

Yossi Yehoshua, military correspondent for the Israeli daily Yedioth Ahronoth, wrote that the military needs to “entrench further its operational achievements” to push Hezbollah, the Lebanese government and mediating countries “to accept an end (of the war) under conditions that are convenient for Israel.”

Some Lebanese fear that means an occupation of parts of the south, 25 years after Israel ended its occupation there.

Lebanese parliamentarian Mark Daou, a critic of both Hezbollah and of Israel’s military operations in Lebanon, said he believed Israel was trying to degrade Hezbollah’s capabilities and turn the Lebanese public “against the will to resist Israeli incursions.”

Gowan, of the International Crisis Group, said one aim of Resolution 1701 was to give the Lebanese army enough credibility that it, not Hezbollah, would be seen “as the legitimate defender” in the south.

“That evaporates if they become (Israel’s) gendarmerie of southern Lebanon,” he said.