British Company Concerned over its Oil ‘Rights’ in Northeastern Syria

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.

Swing states, electoral college votes, candidates up and down the ballot, and millions of potential voters: Here is the US election, broken down by numbers.

- Two -

Several independents ran -- and at least one, Robert F. Kennedy Jr, stumbled into a number of eyebrow-raising headlines.

But in the end, the presidential race comes down to a binary choice, with the two candidates from the major parties -- Democrat Kamala Harris and Republican Donald Trump -- seeking to lead a polarized America.

- Five -

November 5 -- Election Day, traditionally held on the Tuesday following the first Monday in November.

- Seven -

The number of swing states -- those which don't clearly favor one party over the other, meaning they are up for grabs.

Harris and Trump are courting voters in Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin, concentrating their campaign efforts there in a push to ensure victory.

In a razor-tight election, just a handful of votes in any of those states could decide the outcome.

- 34 and 435 -

Voters won't just decide the White House occupant on Election Day -- they will also hit refresh on the US Congress.

Thirty-four Senate seats and all 435 spots in the House of Representatives are up for grabs.

In the House, members serve a two-year term. Republicans currently have the majority, and Harris's Democrats will be hoping for a turnaround.

In the Senate, 34 seats out of 100 are available, for a six-year term. Republicans are hoping to overturn the narrow Democratic majority.

- 538 -

Welcome to the Electoral College, the indirect system of universal suffrage that governs presidential elections in the United States.

Each state has a different number of electors -- calculated by adding the number of their elected representatives in the House, which varies according to population, to the number of senators (two per state).

Rural Vermont, for example, has just three electoral votes. Giant California, meanwhile, has 54.

There are 538 electors in total scattered across the 50 states and the District of Columbia. To take the White House, a candidate must win 270 votes.

- 774,000 -

The number of poll workers who made sure the 2020 election ran smoothly, according to the Pew Research Center.

There are three types of election staff in the United States.

The majority are poll workers -- recruited to do things like greet voters, help with languages, set up voting equipment, and verify voter IDs and registrations.

Election officials are elected, hired or appointed to carry out more specialized duties such as training poll workers, according to Pew.

Poll watchers are usually appointed by political parties to observe the ballot count -- expected to be particularly contentious this year, thanks to Trump's refusal to agree to unconditionally accept the result.

Many election workers have already spoken to AFP about the pressure and threats they are receiving ahead of the November 5 vote.

- 75 million -

As of November 2, more than 75 million Americans had voted early, according to a University of Florida database.

Most US states permit in-person voting or mail-in voting to allow people to deal with scheduling conflicts or an inability to cast their ballots on election day itself on November 5.

- 244 million -

The number of Americans who will be eligible to vote in 2024, according to the Bipartisan Policy Center.

How many of those will actually cast their ballot remains to be seen, of course. But the Pew Research Center says that the midterm elections of 2018 and 2022, and the presidential vote of 2020, produced three of the highest turnouts of their kind seen in the United States in decades.

"About two-thirds (66 percent) of the voting-eligible population turned out for the 2020 presidential election -- the highest rate for any national election since 1900," Pew says on its website.

That translated to nearly 155 million voters, according to the Census Bureau.

British Company Concerned over its Oil ‘Rights’ in Northeastern Syria