Syria's state-owned oil marketing company Sytrol has informed its clients that export volumes for the remaining part of the year 2003 would drop to half, effective immediately. The cutback was announced some 10 days after US forces have cut off an Iraqi pipeline that was long claimed to have been feeding Syria, in defiance of the United Nations sanctions regime.
Under the UN oil-for-food program, in place since 1996, Baghdad was allowed to export oil only through its regimented pipeline to Turkey or its port at Mina Al-Bakr. Oil revenues were then allocated to buy food and medicine for the Iraqi people, and pay Gulf War compensations.
However, since November 2001, Iraq has reportedly been pumping Syria over 200,000 barrels per day (bpd) of discounted crude oil. In December 2002 for example, Syria’s domestic crude output stood at around 510,000 bpd, while domestic consumption was estimated at 295,000 bpd. Nonetheless, during that month, the country has reportedly managed to export over double its expected surplus, some 437,000 bpd of oil.
The Iraq-Syria pipeline, passing through northwestern Iraq, was blown up late March 2003 by US troops, as was a railway link, connecting Iraq and Syria, the Kuwaiti Al-Rai Al-Aam daily disclosed. Syria has repeatedly denied allegations that it was illegally importing oil from its embargoed neighbor to the east. — (menareport.com)
© 2003 Mena Report (www.menareport.com)
