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.



China Backs Yemeni Gov’t, Engages Houthis, Opposes Red Sea Attacks

Shao Zheng, Chargé d'Affaires of the Chinese Embassy in Yemen. (Photo Credit: Bashir Saleh)
Shao Zheng, Chargé d'Affaires of the Chinese Embassy in Yemen. (Photo Credit: Bashir Saleh)
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China Backs Yemeni Gov’t, Engages Houthis, Opposes Red Sea Attacks

Shao Zheng, Chargé d'Affaires of the Chinese Embassy in Yemen. (Photo Credit: Bashir Saleh)
Shao Zheng, Chargé d'Affaires of the Chinese Embassy in Yemen. (Photo Credit: Bashir Saleh)

A Chinese diplomat announced that Beijing is working with the UN Special Envoy for Yemen, Hans Grundberg, the five permanent UN Security Council members, and other key parties to push the Yemen peace plan forward.

The diplomat urged Yemeni factions to negotiate and quickly sign a peace agreement.

Speaking to Asharq Al-Awsat, Shao Zheng, Chargé d'Affaires of the Chinese Embassy in Yemen, said China is in contact with the Houthis and other Yemeni parties. He also called for an end to attacks on commercial ships in the Red Sea.

The Chinese diplomat praised Saudi Arabia’s efforts for peace in Yemen, calling them “positive.” Zheng mentioned that he has met Saudi Arabia’s ambassador to Yemen, Mohammed Al-Jaber, many times, referring to him as “a dear friend.”

He disclosed that China is planning to work with regional countries to quickly achieve peace in the Red Sea region.

Zheng clarified that China’s military base in Djibouti is not currently involved in Red Sea operations.

He highlighted that the Chinese navy has protected 7,200 ships in the Gulf of Aden and off the Somali coast over the past 15 years, with the involvement of 35,000 Chinese soldiers.

Addressing recent US sanctions on Chinese companies accused of supplying military materials to the Houthis, Zheng stated that Beijing opposes these sanctions.

He emphasized that China has strict controls on exporting military and civilian products, calling the sanctions “unilateral and without Security Council approval.”

Moreover, the ambassador expressed optimism about the future of Chinese-Yemeni relations, calling them “bright” and highlighting successful cooperation in various fields over the years.

“This year marks the 68th anniversary of diplomatic ties between China and Yemen. We’ve seen fruitful cooperation in political and economic areas. Both countries support each other regionally and internationally,” Zheng told Asharq Al-Awsat.

“We are confident in a bright future for our relations and can enhance cooperation through initiatives like the Belt and Road” Initiative, he affirmed.

During his recent visit to Yemen, his third in a year, Zheng visited Hadhramaut and Aden, where he attended the arrival of Chinese medical aid, including over 1,000 medical items and 10 ambulances.

“I saw significant local progress, like improved internet speeds, but Yemen still faces challenges such as electricity generation,” noted Zheng.

“In Aden, I met with the prime minister and other government officials for extensive discussions on bilateral relations and the situation in Yemen. We support the legitimate government and the Presidential Leadership Council,” he added.

The Chinese diplomat reaffirmed China’s opposition to military attacks on commercial ships in the Red Sea.

“We must ensure the Red Sea’s security and make our position clear to the Houthis and other parties. The Red Sea crisis has lasted nearly six months, causing significant losses. We call for an end to these attacks,” said Zheng.

“China believes the Red Sea crisis is linked to the conflict in Gaza. We urge immediate peace in Gaza and humanitarian aid to prevent the crisis from spreading,” he added.

On a recent Houthi attack on a Chinese ship, Zheng said China is closely monitoring the Red Sea situation.

“The foreign shipping market is complex, and identifying a ship’s nationality can be difficult. We urge an end to attacks on commercial vessels to avoid disrupting global supply chains,” he said.

“The international community must ensure Red Sea peace according to international law. Civilians must not be targeted.”

“We must achieve peace in Gaza, respect the sovereignty of Red Sea countries like Yemen, and raise security awareness among commercial ships,” asserted Zheng.