SYRIA - Latest Deals.

In December 1993 SPC announced a tender for 14 exploration blocks in the north, north-west and south, covering nearly half the country's land area. Because the terms were not attractive and the response was negative, in 1995 SPC executives said the E&P contracts would be negotiable and they would consider any proposals submitted by foreign companies. But only one small US company, Transglobal, gave a firm commitment and got a block.

In December 1996, MOL of Hungary signed a deal with SPC and got the 5,000 sq km Palmyra East Block, about 250 km north-east of Damascus. It was committed to spend $23m over a 92-month period, with $12m to be spend on drilling four wells in the initial 44 months of its accord. Short of cash, MOL looked for a Western partner but failed. In early 1997 it decided to work the block on its own.

In February 1997, Elf Aquitaine signed an agreement with SPC for the Tishreen region in the north-east, consisting of five blocks totalling 4,201 sq km and previously explored by SPC. Elf was committed to spend $25m and drill 7 wells over a seven-and-half-year period, during which it was to do 3-D seismic surveys. After payment of a 12.5% royalty and recovery of costs from 40-25% (depending on the size of production), 50% of profit oil was to go to SPC. The rest was to be shared on a sliding scale, with SPC taking 68% for small production levels and a maximum of 85% for output exceeding 100,000 b/d. In the case of gas production, a separate contract was to be negotiated on terms which should not be less favourable to Elf than those for the oil contract. Elf holds 40% in this. Its partners are Sumitomo Development Co. (30%) and Petronas Carigali Overseas (30%).

In April 1997 Shell (operator in Al Furat) got the Zenobia Block, in the Euphrates where it had major oil discoveries over the previous 12 years. Shell was to drill four wells in the initial four years of its agreement and carry out 3-D seismic surveys. Shell also has the nearby Al Waleed Block, where it has drilled two wells. Shell needs to find more oil as Al Furat's output has fallen to 340,000 b/d, from a 405,000 b/d peak in 1994.

In late 1997, INA Naftaplin of Croatia and got a block in the Palmyra region. At about the same time, Svenska Petroleum Exploration of Sweden took a block in the Deir Ez Zor area. Oil Minister Jamal said later that negotiations for the award of other blocks were underway with Agip, Arco and Dublin International of Canada. He said Arco was looking at the Raqqa area in the north, with Agip interested in a block in the south.

In Sept. 1998, a Conoco/Elf partnership partnership signed a service deal to gather associated gas in the Deir Ez Zor region and produce 4.3 MCM/day in a $430m project to be completed by 2001.