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.



Fakhri Karim: I Conveyed Talabani’s Advice to Assad on Terrorists

Fakhri Karim (Asharq Al-Awsat)
Fakhri Karim (Asharq Al-Awsat)
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Fakhri Karim: I Conveyed Talabani’s Advice to Assad on Terrorists

Fakhri Karim (Asharq Al-Awsat)
Fakhri Karim (Asharq Al-Awsat)

The late Iraqi President, Jalal Talabani, excelled at delivering messages subtly. In private meetings, he spoke more freely than in public statements or interviews. His chief advisor, Fakhri Karim, often joined these discussions.

Luncheons were lavish, showing Talabani's respect for different opinions, though he rarely followed doctors’ advice.

Talabani believed that Iranian leaders were smart and hoped they wouldn’t try to control Baghdad from Tehran, citing the failed attempt to manage Beirut from Damascus.

He noted that Iraq’s independent spirit makes it hard for the country to follow the US, Iran, or Türkiye. Talabani also admitted giving refuge to 80 Iraqi officers who had fought against Iran, after they were targeted by certain groups.

Talabani praised Syria’s late President Hafez al-Assad for his invaluable support, providing accommodation and passports.

Speaking to Asharq Al-Awsat, Karim revealed he had warned President Bashar al-Assad, on behalf of Talabani, that militants allowed into Iraq to fight US forces might later turn against Syria.

This, Karim noted, did happen.

After the Israeli invasion of Beirut in 1982, Karim relocated to Damascus. There, he expanded his Al-Mada organization, focusing on publishing, translation, and organizing book fairs, alongside his political activities.

This allowed him to build relationships with top civilian and military officials.

In 2000, after Bashar al-Assad came to power, he met with Karim.

“I felt Assad was eager to listen, especially given my connections with many intellectuals,” recalled Karim.

“I told him dissenting voices exist but are mostly positive. You talk about modernization and renewal; this is a chance for some openness, even in elections,” Karim said he told Assad.

“Do you think anyone could really compete with you, given your position as the Baath Party's leader with all its resources?” Karim questioned.

Karim then discussed the situation of Syrian Kurds with Assad, noting that many lack identification papers, even basic travel documents. He also mentioned seeing historic Kurdish areas in the Khabur region with their names changed to Arabic, which causes sensitivities.

“I am not satisfied with this situation. Rest assured, this issue is on my agenda, and you will hear positive news about it,” Karim cited Assad as saying at the time.

In a later meeting, after the change in Iraq, Karim met Assad several times.

On one occasion, Karim recalls conveying Talabani’s greetings and concerns about armed fighters moving into Iraq and the dangers this posed to both Iraq and possibly Syria.

“We have deployed large forces to secure the borders, but what can we do? There are tribes and smugglers,” Assad complained about the situation.

“I told President Assad that as Fakhri Karim, I couldn’t share with the Americans what I know. I assured him that terrorists enter Iraq from a specific location I’m familiar with, not from all borders,” Karim recounted to Asharq Al-Awsat.

“I also noted that Syria tightly controls its airspace, shooting down any foreign aircraft,” he added.

Assad then responded to Karim and said: “We’re prepared, let us know what we can do.”

In reality, Damascus was worried because there were reports suggesting that Syria’s Baath regime could be the next target for the US army at its borders. Additionally, Damascus was concerned about the sectarian divisions—Shiite, Sunni, and Kurdish—in dealing with Iraq and the potential impact on Syria.

Repairing Kurdish Relations

Karim has spent years working on repairing the relationship between Kurdish leaders Talabani and Masoud Barzani.

This history began with the split that gave rise to the ‘Patriotic Union of Kurdistan’ from the ‘Kurdistan Democratic Party.’

Despite bloody conflicts and external meddling, Karim believes Kurdish leaders unify in the face of danger to their people and region, a pattern he expects to continue.

Karim believes that the Kurdish leadership, symbolized by Masoud Barzani and Jalal Talabani, made a big mistake at the beginning by focusing only on regional issues, ignoring Baghdad’s affairs.

He thinks they should have aimed for a federal democratic system that respects citizenship rights.

Karim pointed out that without a unified Iraq, the region’s rights would be uncertain. He also criticized the Shiite-Kurdish alliance, which he sees as odd.

Additionally, he mentioned mistakes in failing to unify regional institutions and increasing corruption, with party interests often trumping competence in appointments.

Asked about the personal bond between Talabani and Barzani, Karim said: “Both have moved past their tough history, but they haven’t done enough for the future.”

“I want to highlight an act by Barzani that shows his character. When Talabani was sick, Barzani made it clear to anyone thinking of harming Talabani or his family that there would be consequences,” he revealed.

“This isn’t hearsay, it’s firsthand,” affirmed Karim.

“Barzani also refused to discuss the presidency or a successor during Talabani’s illness. I personally organized a gathering for Talabani’s family, where Barzani reassured them, ‘I’m here for you, I’m family.’ His words moved everyone, showing a strong emotional connection,” he added.

When asked about Barzani’s character, Karim said: “He's been a long-time friend, and our relationship has been politically aligned and personally warm from the start.”

“I see him as a loyal friend, and he's shown that loyalty on multiple occasions. He’s smart, decisive, and listens carefully, often changing his mind after thorough consideration,” he noted.

“Once Barzani commits to something, he finds it hard to go back on his word. There was a moment during negotiations with Saddam Hussein when he stood firm despite my advice to reconsider,” recalled Karim.

Regarding the aftermath of the independence referendum, Karim believes that the negative turn in the political landscape began during Nouri al-Maliki’s tenure.

Al-Maliki’s attempts to shift alliances and his refusal to compromise exacerbated tensions.

The referendum itself wasn’t the problem; rather, it was exploited by some to punish the Kurdistan Region.

However, Karim emphasized that holding referendums is a citizen’s right, and the purpose of the Kurdistan referendum was to affirm this right, not to declare independence.