US company ConocoPhillips is preparing to sign a contract with the Syrian government’s Syrian Petroleum Company, under which ConocoPhillips and Novaterra Energy would develop existing gas fields and search for new ones in Syria.
The Financial Times reported on Monday, June 15, citing two people familiar with the matter, that the deal had been scheduled to be signed this week.
The newspaper said the US company declined to comment on the report, as the agreement has not been signed so far.
No statement or comment had been issued by the Syrian government on signing the contract with the US company by the time this article was prepared.
The Syrian Petroleum Company signed a memorandum of understanding on May 12 with ConocoPhillips, France’s TotalEnergies, and QatarEnergy to study commercial exploration opportunities in Syrian territorial waters.
According to the Syrian Petroleum Company, the memorandum stipulates that the second party will conduct the necessary technical studies, prepare the work program, and draft the exploration contract before moving to advanced implementation stages in exploration work.
ConocoPhillips works in the exploration, production, transport, and marketing of crude oil, in addition to producing bitumen, natural gas, natural gas liquids, and liquefied natural gas worldwide.
The company manages its operations through six operating segments in the United States, excluding Alaska and Hawaii, Europe, the Middle East, North Africa, Asia Pacific, and Canada.
HKN Invests in Rmelan Fields
Several companies have recently begun entering Syria’s energy investment sector, following improved Syrian-American relations and the lifting of sanctions imposed on Syria in previous years.
A source inside the Rmelan oil fields in al-Hasakah governorate, northeastern Syria, revealed to Enab Baladi details of an agreement concluded with US company HKN to develop and invest in the fields.
The source confirmed to Enab Baladi in a previous report the accuracy of the production distribution ratios that circulated in recent days, noting that the contract was signed in early June, while actual management of the fields remains in the hands of the Syrian Democratic Forces (SDF) so far.
The source’s statements came in response to a report published by Enab Baladi on HKN beginning work in the Rmelan fields under a 25-year investment contract that includes the distribution of production shares among the US company, the Syrian Petroleum Company, and al-Jazeera Oil Services Company.
The source told Enab Baladi that the contract with the US company was signed at the beginning of June, adding that the production distribution ratios circulating inside the field are accurate and have been discussed among workers for about 15 days.
According to the information disclosed by the source, HKN is preparing to take over the management of various operational aspects of the field in the coming few days, as part of arrangements to move into the actual operating phase and implement the agreement’s provisions.
The source confirmed to Enab Baladi the accuracy of information related to al-Jazeera Oil Services Company, affiliated with the SDF, receiving an 8% share of production under the previously concluded agreement.
He added that al-Jazeera is managed by Shahoz Hassan, whose name has emerged in recent years in the oil sector within areas controlled by the Autonomous Administration in northeastern Syria.
Enab Baladi’s previous report stated that the new contract provides for production to be distributed at 60% for the US company HKN, 32% for the Syrian Petroleum Company, and 8% for al-Jazeera Oil Services Company.
The report also addressed Shahoz Hassan’s appearance in meetings linked to the oil sector in Rmelan, in addition to previous reports that discussed his role in managing oil companies operating within areas controlled by the Autonomous Administration.
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