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)
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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.



Jamal Mustafa to Asharq Al-Awsat: I Couldn’t Provide Bribe Demanded by Judge, So I Was Jailed for Another 10 Years

Saddam Hussein and Jamal Mustafa Sultan.
Saddam Hussein and Jamal Mustafa Sultan.
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Jamal Mustafa to Asharq Al-Awsat: I Couldn’t Provide Bribe Demanded by Judge, So I Was Jailed for Another 10 Years

Saddam Hussein and Jamal Mustafa Sultan.
Saddam Hussein and Jamal Mustafa Sultan.

In the final installment of his interview with Asharq Al-Awsat, Jamal Mustafa Sultan, a former Iraqi official and Saddam Hussein’s son-in-law, delves into his arrest, the collapse of hopes for resistance against US forces, and the turmoil that followed the American invasion of Iraq in 2003.

Mustafa faced a harsh journey during the 2003 US invasion of Iraq. He traveled to rally tribal leaders to defend Baghdad, only to return and find the city occupied. Declared a fugitive, his face appeared on the US “most-wanted” playing cards.

Mustafa fled to Syria but was denied asylum and sent back to Iraq, where he was arrested. Accused of leading resistance and car bombings, the court found no evidence to convict him.

In 2011, a judge offered him release in exchange for a bribe, which Mustafa could not afford. His proposal to sell family land to pay was rejected, leaving him imprisoned for another decade. He was eventually freed over lack of evidence.

A US soldier watches the toppling of Saddam Hussein’s statue in Baghdad on April 7, 2003. (Reuters)

After his release, Mustafa went to Erbil, where Kurdish leader Masoud Barzani invited him for a meeting. Barzani welcomed him warmly and asked how he could help. Mustafa requested assistance in obtaining a passport, praising Barzani’s generosity.

Mustafa shared that Saddam respected Barzani, once calling him a “tough but honorable opponent.” He also revealed that, before the 2003 US invasion of Iraq, Barzani had assured Saddam that Kurdish forces would not fight the Iraqi army.

Recalling the lead-up to the war, Mustafa said Saddam tasked him with reconnecting with tribal leaders to encourage them to resist the invasion.

He delivered personal messages from Saddam, along with financial support, to help tribes host Iraqi soldiers stationed nearby. Mustafa later traveled to the Anbar province to rally tribes and bring them to defend Baghdad.

This account offers a rare glimpse into the behind-the-scenes efforts to resist the US invasion and the complex relationships that shaped Iraq’s history.

As the US invasion loomed, Mustafa met with thousands of tribal leaders to rally support for Baghdad’s defense.

“During the war, I met with over 4,500 tribal sheikhs from across Iraq,” he said. But when he returned to Baghdad after a trip to Anbar, everything had changed. “The city had fallen, and everything was in chaos.”

Mustafa tried to locate his associates but found no one. On April 11, 2003, he sent his driver to search for allies.

By chance, his brother, Lt. Gen. Kamal Mustafa, located him. “He told me we needed to leave Baghdad. I hadn’t planned to leave, but he convinced me it was the logical choice—we had no weapons, no men, and no resources. Staying would only mean capture.”

The brothers fled to Ramadi, where tribal leaders offered them refuge, and from there, they attempted to seek asylum in Syria. After just two days, Syrian authorities sent them back to Iraq.

Back in Baghdad, Mustafa and Khalid Najm, Iraq’s last intelligence chief, stayed with a university friend, Dr. Hafidh Al-Dulaimi. While there, Al-Dulaimi’s nephew suggested surrendering to Ahmed Chalabi’s forces, but Mustafa refused.

Saddam Hussein meets with top members of his regime. (Getty Images)

Shortly after, armed men stormed the house. “They came with tanks and masks,” Mustafa recalled. He and Najm were arrested on April 21, 2003—a day he will never forget.

Mustafa shared his experiences in US detention after his capture. “The interrogations were relentless, often involving psychological and physical pressure,” he added.

“They focused on weapons of mass destruction—’did Iraq have them, and where were they?’ Everyone faced the same questions. They also asked about US pilot Michael Scott Speicher, whose plane was shot down during the Gulf War. Though his remains were later found, the Americans kept questioning us, believing more was being hidden.”

Life in the detention center was highly controlled. Detainees were grouped in blocks of seven and given 30 minutes of outdoor time. Sultan recalled a chilling moment when Ahmed Hussein, Saddam’s office chief, told him during exercise: “The president has been captured.”

“We had clung to hope that Saddam’s freedom could lead to Iraq’s liberation,” Mustafa said. “His arrest shattered that hope and signaled the occupation’s permanence.”

He also described mysterious construction in the prison. “We saw carpenters working constantly. Eventually, they built a wooden barrier, blocking the corridor from view. We could only guess what it was for.”

When asked if Saddam had led the resistance before his capture, Mustafa confirmed: “Yes, the resistance began after the war. It wasn’t planned in advance because, at that time, the focus was purely military—army against army.”

“After the occupation, a new phase started. Battles unfolded in stages, and Saddam was leading the resistance during this one. He was the hope of the resistance, of the Iraqi people, and of Arabs and Muslims,” Mustafa revealed.

His remarks offer a glimpse into the post-invasion dynamics and the symbolic role Saddam played during Iraq’s turbulent transition.

Mustafa also recounted the difficulty of reaching his family after his arrest.

“After my capture, I lost all contact with my family. I didn’t have any phone numbers for my brothers, friends, or colleagues. Even if I had, phone lines had been disrupted—many exchanges had been bombed, and communication in Iraq was severely impacted,” he told Asharq Al-Awsat.

Mustafa recalled an encounter with the International Red Cross during his detention.

Saddam Hussein and his daughter Hala. (Courtesy of the family)

“The Red Cross offered me the chance to write a message to my family, as is their usual practice. But I was at a loss—who could I write to? I had no idea where my brothers or family were. I didn’t know anything about their whereabouts.”

Then, Mustafa had an idea. “I thought of Ammo Baba, a well-known football coach in Iraq. I didn’t know his address, but I remembered the address of the Police Club, where I had been president. I decided to write the letter there, addressed to Ammo Baba, asking him to pass it on to my family.”

Mustafa’s story highlights the communication challenges and isolation faced by detainees during the Iraq War.

He then described the prolonged separation from his family following his arrest. “I had no hopes of hearing from my family when I sent my letter through Ammo Baba,” Mustafa said.

“The situation was too difficult. After two and a half to three months, I received a response from Ammo Baba. He sent his regards, inquired about my health, and included a message from Yassin, a coach who worked with me. Along with the letter, they sent me sportswear—a shirt and shorts.”

Mustafa’s communication with his family may have been limited, but the letter served as a lifeline.

“A couple of years later, I received the first message from my wife, Hala, after two years in detention.”

Jamal Mustafa Sultan with his children.

When asked if he had been separated from his family for 18 years, Mustafa confirmed: “Yes, I hadn’t seen them or my children for 18 and a half years.”

“There were no visits or conversations, except for a brief period when we were held by the Americans. During that time, they allowed us five minutes a week to speak with our families. I would split the time—two and a half minutes with my mother and siblings, and the rest with my wife and daughters,” he said.

However, he revealed that after 2010, communication was cut off entirely.

“When we were transferred to Iraqi custody, they stopped allowing any contact. I was careful not to make calls with the Iraqis, as I feared enemies or foreign agents could record them,” explained Mustafa.

Mustafa’s story underscores the isolation he endured and the limited means of contact with his loved ones during years of detention.