Identifier
Created
Classification
Origin
08DAMASCUS93
2008-02-07 16:35:00
CONFIDENTIAL
Embassy Damascus
Cable title:
SARG ANNOUNCES JOINT VENTURE WITH UK/US-BASED
how-toVZCZCXYZ0020 OO RUEHWEB DE RUEHDM #0093 0381635 ZNY CCCCC ZZH O 071635Z FEB 08 FM AMEMBASSY DAMASCUS TO RUEHC/SECSTATE WASHDC IMMEDIATE 4611 INFO RUEHAD/AMEMBASSY ABU DHABI PRIORITY 1387 RUEHAM/AMEMBASSY AMMAN PRIORITY 7218 RUEHAK/AMEMBASSY ANKARA PRIORITY 5460 RUEHGB/AMEMBASSY BAGHDAD PRIORITY 0765 RUEHLB/AMEMBASSY BEIRUT PRIORITY 4849 RUEHEG/AMEMBASSY CAIRO PRIORITY 3540 RUEHDO/AMEMBASSY DOHA PRIORITY 0466 RUEHKU/AMEMBASSY KUWAIT PRIORITY 1301 RUEHRH/AMEMBASSY RIYADH PRIORITY 7939 RUEHTV/AMEMBASSY TEL AVIV PRIORITY 2088 RHEHNSC/NSC WASHDC PRIORITY RUCPDOC/DEPT OF COMMERCE WASHDC PRIORITY RHEFDIA/DIA WASHDC PRIORITY RUEATRS/DEPT OF TREASURY WASHDC PRIORITY RUEAIIA/CIA WASHDC PRIORITY RHMFISS/HQ USCENTCOM MACDILL AFB FL PRIORITY
C O N F I D E N T I A L DAMASCUS 000093
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR ABRAMS/SINGH
E.O. 12958: DECL: 02/07/2018
TAGS: EINV ENRG EPET PGOV SY
SUBJECT: SARG ANNOUNCES JOINT VENTURE WITH UK/US-BASED
GULFSANDS; PRIVATELY CO. SUGGESTS MAJOR NEW FIND
REF: DAMASCUS 70
Classified By: CDA Michael Corbin for reasons 1.4(b,d)
C O N F I D E N T I A L DAMASCUS 000093
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR ABRAMS/SINGH
E.O. 12958: DECL: 02/07/2018
TAGS: EINV ENRG EPET PGOV SY
SUBJECT: SARG ANNOUNCES JOINT VENTURE WITH UK/US-BASED
GULFSANDS; PRIVATELY CO. SUGGESTS MAJOR NEW FIND
REF: DAMASCUS 70
Classified By: CDA Michael Corbin for reasons 1.4(b,d)
1. (C) On February 5, the UK-licensed, majority US-owned
company Gulfsands Petroleum received official SARG permission
to establish a joint venture with Syrian Petroleum Company
(SPC) to develop the Khurbet East (KHE) oil field in
northeastern Syria (Block 26). The same day, Pol/Econ
Counselor and Econoff met with Gulfsands President and
General Manager Mahdi Sajjad (protect),who asserted that the
field is even larger than initial estimates had projected,
with proven and probable reserves possibly exceeding 80
million barrels. Sajjad said that Gulfsands expects to
produce 10,000 bpd as soon as June 2008, with eventual
sustained production of 40,000 bpd by early 2009. Visibly
excited, Sajjad said that this development was proving to be
about as profitable an investment as a mid-cap company could
imagine. His project engineer said that Petroleum Minister
Sufian Allaw had privately characterized the KHE development
to Gulfsands execs as "the most significant Syrian petroleum
discovery in the last twenty years."
2. (C) Comment: While unconfirmed by any third party,
Gulfsands' private touting of this field is potentially very
significant given Syria's declining oil production. If the
company succeeds in bringing 40,000 bpd on-line by the first
quarter of 2009, it would reverse Syria's production decline.
However, small independents like Gulfsands are not above
exaggerating finds to positively influence their access to
markets and capital. Whether true or not, Syria will likely
trumpet this claim as good news in an otherwise bleak
economic picture.
CORBIN
SIPDIS
SIPDIS
STATE FOR NEA/ELA; NSC FOR ABRAMS/SINGH
E.O. 12958: DECL: 02/07/2018
TAGS: EINV ENRG EPET PGOV SY
SUBJECT: SARG ANNOUNCES JOINT VENTURE WITH UK/US-BASED
GULFSANDS; PRIVATELY CO. SUGGESTS MAJOR NEW FIND
REF: DAMASCUS 70
Classified By: CDA Michael Corbin for reasons 1.4(b,d)
1. (C) On February 5, the UK-licensed, majority US-owned
company Gulfsands Petroleum received official SARG permission
to establish a joint venture with Syrian Petroleum Company
(SPC) to develop the Khurbet East (KHE) oil field in
northeastern Syria (Block 26). The same day, Pol/Econ
Counselor and Econoff met with Gulfsands President and
General Manager Mahdi Sajjad (protect),who asserted that the
field is even larger than initial estimates had projected,
with proven and probable reserves possibly exceeding 80
million barrels. Sajjad said that Gulfsands expects to
produce 10,000 bpd as soon as June 2008, with eventual
sustained production of 40,000 bpd by early 2009. Visibly
excited, Sajjad said that this development was proving to be
about as profitable an investment as a mid-cap company could
imagine. His project engineer said that Petroleum Minister
Sufian Allaw had privately characterized the KHE development
to Gulfsands execs as "the most significant Syrian petroleum
discovery in the last twenty years."
2. (C) Comment: While unconfirmed by any third party,
Gulfsands' private touting of this field is potentially very
significant given Syria's declining oil production. If the
company succeeds in bringing 40,000 bpd on-line by the first
quarter of 2009, it would reverse Syria's production decline.
However, small independents like Gulfsands are not above
exaggerating finds to positively influence their access to
markets and capital. Whether true or not, Syria will likely
trumpet this claim as good news in an otherwise bleak
economic picture.
CORBIN