Shell Operations in Syria

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History

Shell has a long history in Syria and has had a presence in the country since the 1940s. They have been operating since 1985 through the Al Furat Petroleum Company (AFPC).[1]

As of 2011, Shell held a 37.5% stake in the AFPC, in partnership with the Syrian General Petroleum Corporation (GPC), Himalaya Energy Syria and a consortium of CNPC and India's ONGC. In September 2008, Shell extended its three Production Sharing Agreements (PSAs) with the Syrian government for a further ten years.[2]

Activities

As of 2011 Shell was only active in the upstream segment of the Syrian oil sector. The company's two subsidiaries in upstream Syria are 'Syria Shell Petroleum Development' (SSPD) and 'Shell South Syria Exploration' (SSE)

The SSPD is the major vehicle for operations and has interests ranging from 62.5% to 66.67% in three production licenses in Syria, at Deir Ez Zor, Fourth Annex and Ash Sham. All three contracts were signed with the Syrian government and the Syrian General Petroleum Corporation (GPC).

In 2010 the SSPD produced 7.3 million barrels of oil equivalent (boe), compared to 14.2 million boe in 2005. In 2009 Shell's operations accounted for 5.9% of Syria's total oil production, down from 8% in 2005.

The SSE is a 100% owned Shell subsidiary registered in Bermuda and has exploration interests in two production-sharing contracts for blocks in the south of Syria.[1]

The 'Pecten-Syria Petroleum Company', a wholly owned subsidiary of Shell, is also a major investor in Syria. Pecten has invested heavily in oil exploration and has developed the Thayyem fields in eastern Syria.[3] Pecten holds a 15.625% in the AFPC, alongside the Syrian Petroleum Company (SPC), Royal Dutch Shell and Deminex. Shell is the operator of the venture.[4]

Impact of Uprising 2011

On 2 December 2011 Royal Dutch Shell announced that they would cease activities in Syria after the EU blacklisted three state-owned oil companies, including the GPC.[5]

References

  1. 1.0 1.1 Investments of European companies in SyriaIKV Pax Christi, 13 May 2011.
  2. The Right MixSyria Today, April 2010.
  3. Syria: U.S. Economic Sanctions Carry Little WeightWashington Report, Januar 1987.
  4. Syria: the Offshore ProspectsHigh Beam Research, 8 March 2004.
  5. Gulfsands shuts down production in SyriaFinancial Times, 12 December 2011.