عربي English Türkçe اردو فارسى
Logo
Latest News
Features

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)
TT
TT

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.

Most Viewed

 
 
Features

The Fragile Israel-Hezbollah Truce is Holding so Far, Despite Violations

Mariam Kourani removes a toy car from the rubble of her destroyed house after returning with her family to the Hanouiyeh village in southern Lebanon, on Nov. 28, 2024, following a ceasefire between Israel and Hezbollah. (AP Photo/Hussein Malla, File)
Mariam Kourani removes a toy car from the rubble of her destroyed house after returning with her family to the Hanouiyeh village in southern Lebanon, on Nov. 28, 2024, following a ceasefire between Israel and Hezbollah. (AP Photo/Hussein Malla, File)
TT
TT

The Fragile Israel-Hezbollah Truce is Holding so Far, Despite Violations

Mariam Kourani removes a toy car from the rubble of her destroyed house after returning with her family to the Hanouiyeh village in southern Lebanon, on Nov. 28, 2024, following a ceasefire between Israel and Hezbollah. (AP Photo/Hussein Malla, File)
Mariam Kourani removes a toy car from the rubble of her destroyed house after returning with her family to the Hanouiyeh village in southern Lebanon, on Nov. 28, 2024, following a ceasefire between Israel and Hezbollah. (AP Photo/Hussein Malla, File)

A fragile ceasefire between Israel and the Lebanon's Hezbollah has held up for over a month, even as its terms seem unlikely to be met by the agreed-upon deadline.

The deal struck on Nov. 27 to halt the war required Hezbollah to immediately lay down its arms in southern Lebanon and gave Israel 60 days to withdraw its forces there and hand over control to the Lebanese army and UN peacekeepers.

So far, Israel has withdrawn from just two of the dozens of towns it holds in southern Lebanon. And it has continued striking what it says are bases belonging to Hezbollah, which it accuses of attempting to launch rockets and move weapons before they can be confiscated and destroyed, The AP reported.

Hezbollah, which was severely diminished during nearly 14 months of war, has threatened to resume fighting if Israel does not fully withdraw its forces by the 60-day deadline.

Yet despite accusations from both sides about hundreds of ceasefire violations, the truce is likely to hold, analysts say. That is good news for thousands of Israeli and Lebanese families displaced by the war still waiting to return home.

“The ceasefire agreement is rather opaque and open to interpretation,” said Firas Maksad, a senior fellow with the Middle East Institute in Washington. That flexibility, he said, may give it a better chance of holding in the face of changing circumstances, including the ouster of Syria's longtime leader, Bashar Assad, just days after the ceasefire took effect.

With Assad gone, Hezbollah lost a vital route for smuggling weapons from Iran. While that further weakened Hezbollah’s hand, Israel had already agreed to the US-brokered ceasefire.

Hezbollah began firing rockets into Israel on Oct. 8, 2023 — the day after Hamas launched a deadly attack into Israel that ignited the ongoing war in Gaza. Since then, Israeli air and ground assaults have killed more than 4,000 people in Lebanon, including hundreds of civilians. At the height of the war, more than 1 million Lebanese people were displaced.

Hezbollah rockets forced some 60,000 from their homes in northern Israel, and killed 76 people in Israel, including 31 soldiers. Almost 50 Israeli soldiers were killed during operations inside Lebanon.

Here’s a look at the terms of the ceasefire and its prospects for ending hostilities over the long-term.

What does the ceasefire agreement say? The agreement says that both Hezbollah and Israel will halt “offensive” military actions, but that they can act in self-defense, although it is not entirely clear how that term may be interpreted.

The Lebanese army is tasked with preventing Hezbollah and other militant groups from launching attacks into Israel. It is also required to dismantle Hezbollah facilities and weapons in southern Lebanon — activities that might eventually be expanded to the rest of Lebanon, although it is not explicit in the ceasefire agreement.

The United States, France, Israel, Lebanon and the UN peacekeeping force in Lebanon, known as UNIFIL, are responsible for overseeing implementation of the agreement.

“The key question is not whether the deal will hold, but what version of it will be implemented,” Maksad, the analyst, said.

Is the ceasefire being implemented? Hezbollah has for the most part halted its rocket and drone fire into Israel, and Israel has stopped attacking Hezbollah in most areas of Lebanon. But Israel has launched regular airstrikes on what it says are militant sites in southern Lebanon and in the Bekaa Valley.

Israeli forces have so far withdrawn from two towns in southern Lebanon - Khiam and Shamaa. They remain in some 60 others, according to the International Organization for Migration, and around 160,000 Lebanese remain displaced.

Lebanon has accused Israel of repeatedly violating the ceasefire agreement and last week submitted a complaint to the UN Security Council that says Israel launched some 816 “ground and air attacks” between the start of the ceasefire and Dec. 22, 2024.

The complaint said the attacks have hindered the Lebanese army's efforts to deploy in the south and uphold its end of the ceasefire agreement.

Until Israel hands over control of more towns to the Lebanese army, Israeli troops have been destroying Hezbollah infrastructure, including weapons warehouses and underground tunnels. Lebanese authorities say Israel has also destroyed civilian houses and infrastructure.

What happens after the ceasefire has been in place for 60 days? Israel's withdrawal from Lebanese towns has been slower than anticipated because of a lack of Lebanese army troops ready to take over, according to Lt. Col. Nadav Shoshani, a military spokesman. Lebanon disputes this, and says it is waiting for Israel to withdraw before entering the towns.

Shoshani said Israel is satisfied with the Lebanese army's control of the areas it has already withdrawn from, and that while it would prefer a faster transfer of power, security is its most important objective.

Israel does not consider the 60-day timetable for withdrawal to be “sacred,” said Harel Chorev, an expert on Israel-Lebanon relations at Tel Aviv University who estimates that Lebanon will need to recruit and deploy thousands more troops before Israel will be ready to hand over control.

Hezbollah officials have said that if Israeli forces remain in Lebanon 60 days past the start of the ceasefire, the militant group might return to attacking them. But Hezbollah Secretary General Naim Kassem said Wednesday that, for now, the group is holding off to give the Lebanese state a chance to "take responsibility” for enforcing the agreement.

Over the final two months of the war, Hezbollah suffered major blows to its leadership, weapons and forces from a barrage of Israeli airstrikes, and a ground invasion that led to fierce battles in southern Lebanon. The fall of Assad was another big setback.

“The power imbalance suggests Israel may want to ensure greater freedom of action after the 60-day period,” Maksad, the analyst, said. And Hezbollah, in its weakened position, now has a “strong interest” in making sure the deal doesn't fall apart altogether “despite Israeli violations,” he said.

While Hezbollah may not be in a position to return to open war with Israel, it or other groups could mount guerilla attacks using light weaponry if Israeli troops remain in southern Lebanon, said former Lebanese army Gen. Hassan Jouni. And even if Israel does withdraw all of its ground forces, Jouni said, the Israeli military could could continue to carry out sporadic airstrikes in Lebanon, much as it has done in Syria for years.