Oil companies hit hard in Syrian business

Since the European Union began imposing sanctions on Syria for oil embargoes and restricting investment in September, the EU foreign ministers’ meeting decided on December 1 to expand sanctions on Syria’s oil and finance. During this period, the United States, Canada and the Arab League also joined the sanctions team. Affected by the sanctions, oil companies such as Royal Dutch Shell, France’s Total, the British oil company Gulfsands, and Suncor Energy of Canada have been affected in Syria, bringing the turmoil in Libya. Adding to the frost.

According to Reuters, Shell was forced to stop all operations in Syria due to sanctions. In view of the current severe situation, Shell announced on December 2 that it will comply with the EU's sanctions resolution and stop its oil and gas business in Syria. A Shell spokesperson stated that Shell produces 10,000 to 15,000 barrels of crude oil per day in Syria, but considering the safety of its employees, Shell will stop all operations in Syria. Earlier, according to sources in the Financial Times of the UK, since mid-November, Syria has stopped paying oil to Shell in Syria. Observers said that the Shell company clearly stated that it would stop its business in Syria and may become a precursor to the withdrawal of Syrian-listed foreign companies.

In addition to Shell, France’s Total did not receive Syrian oil payments in the past two months. The Total spokesman said on December 2 that since Syria’s oil exports were banned, Total’s oil production in Syria has been greatly reduced, and Total’s operations in the Middle East have also been affected to some extent. Total said it will comply with EU resolutions, but it will not stop oil exploration operations in Syria for the time being. At present, Total and Syrian Petroleum Corporation (SPC) own a 50:50 joint venture, which is not listed in the EU's sanctions list.

The British Gevson Petroleum Company stated on December 2 that it will comply with the EU’s latest sanctions resolution, but a company spokesperson declined to comment on whether the move meant that Gavson would completely cease operations in Syria. At present, Gavson Petroleum owns the mining rights of East Khurbet oil field in block 26 of northeastern Syria. The daily production of crude oil amounts to 24,000 barrels, and the output accounts for 90% of the total output of Gavson Oil. Once the operation is stopped, the loss is more serious.

Canadian energy giant Suncor said it will continue its natural gas operations in Syria. Canadian Foreign Affairs Minister John Baird stated on December 2 that Suncor has a natural gas project in Libya with an investment scale of US$120 million and has a partnership with Syrian state-owned companies. Due to Syria's power shortage, Suncor will not temporarily terminate its natural gas power generation business.

In addition, the businesses of CNPC, INA, and Petro-Canada have also been affected to varying degrees.