Canada’s Suncor Energy is committed to operating its Elba gas plant in Syria despite the government’s continued crackdown on opposition demonstrators, the company said in its third quarter earnings release on Thursday. While sanctions imposed by the United States and EU in August against President Bashar al-Assad’s regime prohibit the purchase of Syrian oil production and new investment in the Syria oil industry, they “do not impact the production and sale of natural gas from the Ebla project, which is not exported, but which helps meet the domestic energy supply,” the Alberta-based company said.
Suncor holds a 50% share in the $1.2 billion Elba gas plant located in the Central Syrian Gas Basin through a joint venture with Syria’s state-owned General Petroleum Corporation. The facility produces around 2.2 million cubic metres per day of gas to the domestic market.
“Suncor believes that, by employing local Syrian staff, developing Syrian capability and producing natural gas to generate electricity for domestic consumption, the company can be a positive contributor in Syria, provided the work can be done responsibly. To that end, Suncor is also focused on the social responsibility we have in operating in an area affected by conflict,” the company said.
Meanwhile, energy companies across Europe, the US and the Middle East are withdrawing from Syria (see Suncor reviews value of Elba gas plant, as fresh sanctions imposed against Syria, 24 August 2011). The chief executive of United Arab Emirates-based Dana Gas, Ahmed Rashid Al Arbeed, said in October the company had halted all talks with the government about investing in the country’s gas sector. Dana Gas had bid for onshore blocks on offer in Syria’s 2010 licensing round.
“Although the company has reviewed opportunities in Syria last year, it is currently not involved with any discussions with the Syrian authorities nor has it signed any contracts or agreements,” Al Arbeed said in a statement to the UAE stock exchange on 23 October. Dana Gas could not be reached for further comment when contacted by Interfax.
While the violence against anti-government protestors continues, the sanctions are crippling the Syrian economy. “EU sanctions on oil exports are contributing to a sense of imminent economic crisis. The ban is likely to have a significant effect as Europe accounts for 95% of Syria’s energy exports. The government could redirect its exports to other countries, but this would take time,” Alison Baily, a Middle East Analyst at Oxford Analytica told Interfax on Thursday. “The loss of revenue will contribute to the economic downturn caused by the uprising. This will weaken the government’s position, reducing its room for manoeuvre and increasing popular discontent.”
After seven months of protests on Wednesday Damascus accepted an Arab League peace initiative calling for the immediate withdrawal of security forces from towns and cities, a halt to all violence against protestors and the release of all political prisoners. Despite the agreement, reports are filtering out of Syria on Thursday that security forces have killed at least five people in the city of Homs and troops continue to patrol the streets. While restrictions against foreign media have made it difficult to verify events on the ground, the Arab League has called for the government to allow journalists, as well as Arab League monitors into the country. Both the US and Britain have repeated calls for Assad to step down.
Suncor continues Ebla gas operations in Syria
Suncor holds a 50% share in the $1.2 billion Elba gas plant located in the Central Syrian Gas Basin through a joint venture with Syria’s state-owned General Petroleum Corporation. The facility produces around 2.2 million cubic metres per day of gas to the domestic market.
“Suncor believes that, by employing local Syrian staff, developing Syrian capability and producing natural gas to generate electricity for domestic consumption, the company can be a positive contributor in Syria, provided the work can be done responsibly. To that end, Suncor is also focused on the social responsibility we have in operating in an area affected by conflict,” the company said.
Meanwhile, energy companies across Europe, the US and the Middle East are withdrawing from Syria (see Suncor reviews value of Elba gas plant, as fresh sanctions imposed against Syria, 24 August 2011). The chief executive of United Arab Emirates-based Dana Gas, Ahmed Rashid Al Arbeed, said in October the company had halted all talks with the government about investing in the country’s gas sector. Dana Gas had bid for onshore blocks on offer in Syria’s 2010 licensing round.
“Although the company has reviewed opportunities in Syria last year, it is currently not involved with any discussions with the Syrian authorities nor has it signed any contracts or agreements,” Al Arbeed said in a statement to the UAE stock exchange on 23 October. Dana Gas could not be reached for further comment when contacted by Interfax.
While the violence against anti-government protestors continues, the sanctions are crippling the Syrian economy. “EU sanctions on oil exports are contributing to a sense of imminent economic crisis. The ban is likely to have a significant effect as Europe accounts for 95% of Syria’s energy exports. The government could redirect its exports to other countries, but this would take time,” Alison Baily, a Middle East Analyst at Oxford Analytica told Interfax on Thursday. “The loss of revenue will contribute to the economic downturn caused by the uprising. This will weaken the government’s position, reducing its room for manoeuvre and increasing popular discontent.”
After seven months of protests on Wednesday Damascus accepted an Arab League peace initiative calling for the immediate withdrawal of security forces from towns and cities, a halt to all violence against protestors and the release of all political prisoners. Despite the agreement, reports are filtering out of Syria on Thursday that security forces have killed at least five people in the city of Homs and troops continue to patrol the streets. While restrictions against foreign media have made it difficult to verify events on the ground, the Arab League has called for the government to allow journalists, as well as Arab League monitors into the country. Both the US and Britain have repeated calls for Assad to step down.