AANES Utilizes Half of Syrian Oil Wells, Traders Sell to Damascus at Symbolic Rates

File photo from the Al-Omar oil field in the eastern countryside of Deir Ezzor. The image was captured after the conclusion of military operations and the expulsion of ISIS elements (Asharq Al-Awsat)
File photo from the Al-Omar oil field in the eastern countryside of Deir Ezzor. The image was captured after the conclusion of military operations and the expulsion of ISIS elements (Asharq Al-Awsat)
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AANES Utilizes Half of Syrian Oil Wells, Traders Sell to Damascus at Symbolic Rates

File photo from the Al-Omar oil field in the eastern countryside of Deir Ezzor. The image was captured after the conclusion of military operations and the expulsion of ISIS elements (Asharq Al-Awsat)
File photo from the Al-Omar oil field in the eastern countryside of Deir Ezzor. The image was captured after the conclusion of military operations and the expulsion of ISIS elements (Asharq Al-Awsat)

Over the course of twelve years of ongoing conflict in Syria, the dossier of oil and energy has remained an enigmatic puzzle. Ever since oil and gas fields slipped from the grip of government forces loyal to President Bashar al-Assad at the close of 2012, control over these resources has shifted among various entities.

It wasn't until 2016 that the Syrian Democratic Forces (SDF), backed by an international coalition led by Washington, managed to wrest control of the oil-rich and natural gas-abundant towns and settlements of Shaddadi, Al-Hol, and Al-Jabsa, southeast of the city of Al-Hasakah, from the clutches of the terrorist group ISIS.

Later in 2017, ISIS terrorists were expelled by the SDF from oil fields in the eastern countryside of Deir Ezzor, located in eastern Syria. These fields used to yield a daily production of 120,000 barrels of heavy oil prior to the outbreak of the 2011 conflict.

Hassan Kocher, deputy co-chair of the Executive Council of the Autonomous Administration of North and East Syria (AANES), revealed to Asharq Al-Awsat that the administration invests in less than half of the wells and fields in its areas of influence, approximately 150,000 barrels per day, noting that production was around 385,000 barrels per day before the 2011 war.

Kocher refuted accusations directed at the AANES and US forces of plundering Syrian oil or monopolizing these resources, citing evidence of a portion of the production being sold to regime-affiliated traders at nominal prices compared to global rates.

Since the onset of the Syrian war, the regions encompassing oil fields and their wells have come under the control of various military factions.

Following 2014, especially in the outskirts of the cities of Deir Ezzor and Al-Hasakah, these fields faced military assaults from armed radical groups and extremist Islamic organizations.

These attacks significantly impacted these fields and wells, with some being destroyed and others subjected to vandalism, leading to a decline in production.

With limited resources, the AANES managed to harness a portion equivalent to less than half of the pre-2011 production from these wells to meet the energy and fuel needs of the region’s inhabitants, disclosed Kocher.

When asked about the status of oil and gas fields post their liberation of ISIS, Kocher said: “After SDF forces liberated fields in the outskirts of Deir Ezzor (2019) and Al-Hasakah (2016), they encountered logistical obstacles that hindered the production of many wells.”

“Some of the equipment was stolen, and another portion was deliberately vandalized, aiming to undermine the region’s economy,” added Kocher.

According to the deputy co-chair, remaining wells require maintenance, restoration, experts, technicians, and significant resources that the AANES does not possess.

“Additionally, the siege imposed on our areas from all sides has significantly contributed to the decline of the oil sector,” added Kocher.

As for revenues collected from oil and gas production under the AANES, Kocher said they flow back to the structures of the administration and local councils that oversee the regions, aimed at covering the expenses of the military and security forces safeguarding their geographical borders.

“These revenues also contribute to the overall budget, enabling the provision of essential services for the region’s residents and supporting the payment of salaries for workers and employees,” clarified Kocher.

Talking about the buying and selling operations conducted with Damascus and other areas of influence, Kocher said there are “no official contracts or established methods due to the fact that all borders are besieged and closed.”

“There is also no agreement for the sale and purchase of crude oil, neither with the Syrian government nor with other entities,” added Kocher.

“Here, it is crucial to emphasize the necessity of establishing a mechanism to regulate these operations, as it would be a positive development in serving all Syrians, regardless of their geographical location, as we are a part of Syria and these resources belong to all Syrians,” he affirmed.

Buying and selling operations are conducted through traders affiliated with the regime, and the quantities extracted nowadays barely suffice for the region’s population needs.

“Despite this, a portion of the extracted oil is sold through these traders to Damascus, while another portion is bought by traders for resale to other areas,” said Kocher, asserting that the AANES does not monopolize these resources, contrary to the claims of both the government and opposing factions.

“It has become widely known that the administration’s own regions are grappling with severe crises in the distribution of household gas and diesel fuel,” noted Kocher.

As for accusations of plundering Syrian oil leveled by the Syrian regime and international parties against the SDF and US forces, Kocher asserted that those allegations are utterly false.

“These claims are entirely baseless, both in their entirety and in their details,” said Kocher.

“The international coalition and US forces have not intervened in the oil issue.”

“Officially, they state that their tasks are limited to combating and defeating the terrorist organization ISIS and eliminating its sleeper cells in eastern Syria.”

Regarding the AANES presenting the US-led international coalition with a project for building an oil refinery, Kocher admits the administration had submitted such a proposal.

“Given that our regions are surrounded on all sides and lack official crossings, these efforts have not succeeded in establishing such a facility,” revealed Kocher.

“To this day, oil refining continues to be carried out using primitive methods that negatively impact environmental safety, as well as the overall economic cycle of northeastern Syria due to the absence of oil investments,” he added.



Goldrich to Asharq Al-Awsat: No US Withdrawal from Syria

US Deputy Assistant Secretary of State for Near Eastern Affairs Ethan Goldrich during the interview with Asharq Al-Awsat
US Deputy Assistant Secretary of State for Near Eastern Affairs Ethan Goldrich during the interview with Asharq Al-Awsat
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Goldrich to Asharq Al-Awsat: No US Withdrawal from Syria

US Deputy Assistant Secretary of State for Near Eastern Affairs Ethan Goldrich during the interview with Asharq Al-Awsat
US Deputy Assistant Secretary of State for Near Eastern Affairs Ethan Goldrich during the interview with Asharq Al-Awsat

Deputy Assistant Secretary of State for Near Eastern Affairs Ethan Goldrich has told Asharq Al-Awsat that the US does not plan to withdraw its forces from Syria.

The US is committed to “the partnership that we have with the local forces that we work with,” he said.

Here is the full text of the interview.

Question: Mr. Goldrich, thank you so much for taking the time to sit with us today. I know you are leaving your post soon. How do you assess the accomplishments and challenges remaining?

Answer: Thank you very much for the chance to talk with you today. I've been in this position for three years, and so at the end of three years, I can see that there's a lot that we accomplished and a lot that we have left to do. But at the beginning of a time I was here, we had just completed a review of our Syria policy, and we saw that we needed to focus on reducing suffering for the people in Syria. We needed to reduce violence. We needed to hold the regime accountable for things that are done and most importantly, from the US perspective, we needed to keep ISIS from reemerging as a threat to our country and to other countries. At the same time, we also realized that there wouldn't be a solution to the crisis until there was a political process under resolution 2254, so in each of these areas, we've seen both progress and challenges, but of course, on ISIS, we have prevented the reemergence of the threat from northeast Syria, and we've helped deal with people that needed to be repatriated out of the prisons, and we dealt with displaced people in al-Hol to reduce the numbers there. We helped provide for stabilization in those parts of Syria.

Question: I want to talk a little bit about the ISIS situation now that the US troops are still there, do you envision a timeline where they will be withdrawn? Because there were some reports in the press that there is a plan from the Biden administration to withdraw.

Answer: Yeah. So right now, our focus is on the mission that we have there to keep ISIS from reemerging. So I know there have been reports, but I want to make clear that we remain committed to the role that we play in that part of Syria, to the partnership that we have with the local forces that we work with, and to the need to prevent that threat from reemerging.

Question: So you can assure people who are saying that you might withdraw, that you are remaining for the time being?

Answer: Yes, and that we remain committed to this mission which needs to continue to be pursued.

Question: You also mentioned the importance of humanitarian aid. The US has been leading on this. Are you satisfied with where you are today on the humanitarian front in Syria?

Answer: We remain committed to the role that we play to provide for humanitarian assistance in Syria. Of the money that was pledged in Brussels, we pledged $593 million just this past spring, and we overall, since the beginning of the conflict, have provided $18 billion both to help the Syrians who are inside of Syria and to help the refugees who are in surrounding countries. And so we remain committed to providing that assistance, and we remain keenly aware that 90% of Syrians are living in poverty right now, and that there's been suffering there. We're doing everything we can to reduce the suffering, but I think where we would really like to be is where there's a larger solution to the whole crisis, so Syrian people someday will be able to provide again for themselves and not need this assistance.

Question: And that's a perfect key to my next question. Solution in Syria. you are aware that the countries in the region are opening up to Assad again, and you also have the EU signaling overture to the Syrian regime and Assad. How do you deal with that?

Answer: For the United States, our policy continues to be that we will not normalize with the regime in Syria until there's been authentic and enduring progress on the goals of resolution 2254, until the human rights of the Syrian people are respected and until they have the civil and human rights that they deserve. We know other countries have engaged with the regime. When those engagements happen, we don't support them, but we remind the countries that are engaged that they should be using their engagements to push forward on the shared international goals under 2254, and that whatever it is that they're doing should be for the sake of improving the situation of the Syrian people.

Question: Let's say that all of the countries decided to talk to Assad, aren’t you worried that the US will be alienated in the process?

Answer: The US will remain true to our own principles and our own policies and our own laws, and the path for the regime in Syria to change its relationship with us is very clear, if they change the behaviors that led to the laws that we have and to the policies that we have, if those behaviors change and the circumstances inside of Syria change, then it's possible to have a different kind of relationship, but that's where it has to start.

Question: My last question to you before you leave, if you have to pick one thing that you need to do in Syria today, what is it that you would like to see happening today?

Answer: So there are a number of things, I think that will always be left and that there are things that we will try to do, to try to make them happen. We want to hold people accountable in Syria for things that have happened. So even today, we observed something called the International Day for victims of enforced disappearances, there are people that are missing, and we're trying to draw attention to the need to account for the missing people. So our step today was to sanction a number of officials who were responsible for enforced disappearances, but we also created something called the independent institution for missing persons, and that helps the families, in the non-political way, get information on what's happened. So I'd like to see some peace for the families of the missing people. I'd like to see the beginning of a political process, there hasn't been a meeting of the constitutional committee in two years, and I think that's because the regime has not been cooperating in political process steps. So we need to change that situation. And I would, of course, like it's important to see the continuation of the things that we were talking about, so keeping ISIS from reemerging and maintaining assistance as necessary in the humanitarian sphere. So all these things, some of them are ongoing, and some of them remain to be achieved. But the Syrian people deserve all aspects of our policy to be fulfilled and for them to be able to return to a normal life.