Devon Energy has entered into an agreement to explore for oil and natural gas in Syria. Devon and its partner, Gulfsands Petroleum, entered into the agreement covering Block 26 in northeastern Syria with the Syrian government and the Syrian Petroleum Company.
Devon will be operator and has an 80 percent participating interest. Gulfsands has a 20 percent participating interest. Under the terms of the Exploration, Development and Production Sharing Contract, Devon and Gulfsands are obligated to pay a signature bonus of one million dollars.
In addition, during the initial four-year term of the contract, Devon and Gulfsands are committed to conduct geologic and geophysical studies, acquire seismic data and drill four exploration wells. Devon and Gulfsands' total obligation under the contract approximates $17 million, including the one million dollar signature bonus.
Block 26 covers an area of more than 11,000 square kilometers. The agreement excludes the Syrian Petroleum Company's existing fields located within the outer perimeter of the block. These existing fields are currently producing more than 120,000 barrels of oil per day and will continue to be owned and operated by the Syrian Petroleum Company.
The Syrian partnership focuses on exploration around areas with proven reserves. It could, over time, expand to include cooperation between Syrian Petroleum Company and Devon on additional development and production enhancement projects in the area,” said president and COO of Devon, James T. Hackett.
Devon Energy Corporation is an Oklahoma City-based independent energy company engaged in oil and gas exploration, production and property acquisitions. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
