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Syria signs two oil and gas exploration and exploitation contracts with Shell

Syria signs two oil and gas exploration and exploitation contracts with Shell

Syria's Oil Ministry on Wednesday signed two 20-year contracts worth US$42 million (euro33 million) with Shell for the exploration and exploitation of oil and gas in the northeast, the oil ministry announced.
Under the first contract Dutch Shell will conduct exploration and exploitation work in an area extending from southwest of Deir El-Zour 450 kilometers, (270 miles), northeast of Damascus, to the Iraqi border, the ministry said in a statement.
The contract is worth US$20 million (euro15.7 million).
The second deal, valued at US$22 million (euro138 million), focuses on an area just south of Palmyra, 256 kilometers (154 miles) north of Damascus.
Under each, Syria receives 12.5 percent of oil produced and Shell trains employees of the state-owned the Syrian Oil Company.
Signing the contracts at the Oil Ministry Wednesday were the head of the Syrian Oil Company, Ahmed Moalla, and general manager of Shell's Syrian operations, Campbell Keir.
Although Syria is the only significant producer of oil in the eastern Mediterranean, its production has declined over the past decade. In 1996, it peaked at 590,000 barrels per day, dropping to some 365,000 bpd of crude in 2005, the U.S. Energy Information Administration says.
In 1985, Shell participated in establishing the largest foreign oil producer operating in Syria, Al-Furat Petroleum Co., which is currently joint owned by Syria's Oil Ministry, Shell, an Indian company and a Chinese firm.
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Updated : 2021-03-02 07:32 GMT+08:00