EU plans to impose oil embargo on Syria 'next week'

The European Union adopted sanctions against 15 more Syrian individuals and five businesses, and said a promised oil embargo on the Middle Eastern country could be in place next week.

“The whole process could be completed by the end of next week if all goes according to plan,” said an EU diplomat, referring to discussions over the imposition of the embargo.

The diplomat said there is uncertainty about the exact scope of the new criteria, with discussions apparently hampered by concerns over how to structure the EU sanctions without risking legal challenges by their targets.

Industry sources said an oil embargo would mark a major step for the EU, where several governments have been reluctant to target Syria’s oil industry due to concerns over potential damage to their commercial interests.

Sanctions imposed by Washington have excluded US companies from participating in Syria’s oil and gas industry, but Damascus has been working with European companies such as Royal Dutch Shell PLC and Total SA, along with Chinese and Indian firms.

The main foreign producing consortium in Syria is the Al-Furat Petroleum Co., a joint venture of Syria's General Petroleum Corp. 50%, Shell Oil 29.7%, and China National Petroleum Corp. 20.3%.

According to the US Energy Information Administration, Syria's net petroleum exports were estimated to be 109,000 b/d in 2010, down slightly from the 117,000 b/d exported in 2009.

Around 95% of Syria’s oil exports go to EU countries, with the main buyers by percentage being Germany 32%, Italy 31%, France 11%, the Netherlands 9%, Austria 7% and Spain 5%.

The EIA said Syria exports two main grades of crude: its main export grade the low-quality, high-sulfur Souedieh known as Syrian heavy, and the high-quality, low-sulfur Syrian light.

Heavy crude oil accounts for about 75% of Syria's oil exports, with Souedieh produced by SPC. Syrian Light is a blend of production from the Shell-led AFPC venture, and smaller amounts from Total’s venture at Deir ez-Zor.

The EU’s planned move comes after the US government last week imposed sweeping sanctions against Syria, prohibiting US companies from importing or exporting crude or oil products to and from the country (OGJ Online, Aug. 18, 2011).

Ahead of the EU’s planned embargo, industry sources said that the world’s largest oil traders and companies—such as Vitol, Trafigura, Total, and Shell—are voluntarily ending their trade links with Syria.

One oil trader said that his firm is not participating in new tenders of deals, while another claimed that his firm had recently stopped dealing with the Syrians due to the planned imposition of EU sanctions.

Earlier this year, Syria announced a bidding round for the development of oil shale deposits in al-Khanasir, southeast of Aleppo. The area for bid is comprised of 14 blocks, with total shale oil deposits estimated at 285 billion bbl. The submission of bids is due by Nov. 30.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

PHMSA proposes pipeline accident notification regulations

07/02/2015 The US Pipeline and Hazardous Materials Safety Administration has proposed new federal oil and gas pipeline accident and notification regulations. ...

FourPoint Energy to acquire Anadarko basin assets from Chesapeake

07/02/2015 FourPoint Energy LLC, a privately owned Denver company, plans to acquire oil and gas assets from Chesapeake Energy Corp. subsidiaries Chesapeake Ex...

Puma Energy completes purchase of Murco’s UK refinery, terminals

07/02/2015 Singapore-based Puma Energy Group Pte. has completed its purchase of UK midstream and downstream assets from Murco Petroleum Ltd., a subsidiary of ...

BP to settle federal, state Deepwater Horizon claims for $18.7 billion

07/02/2015 BP Exploration & Production Inc. has agreed in principle to settle all federal and state claims arising from the 2010 Deepwater Horizon inciden...

MARKET WATCH: NYMEX oil prices plummet on crude inventory build, Iran deadline extension

07/02/2015 Oil prices plummeted more than $2/bbl July 1 to settle at a 2-month low on the New York market after a weekly government report showed the first ri...

API to issue recommended practice to address pipeline safety

07/01/2015 The American Petroleum Institute expects to issue a new recommended practice in another few weeks that addresses pipeline safety issues, but the tr...

Shell Midstream Partners takes interest in Poseidon oil pipeline

07/01/2015 Shell Midstream Partners LP has completed its acquisition of 36% equity interest in Poseidon Oil Pipeline Co. LLC from Equilon Enterprises LLC, a s...

MARKET WATCH: Oil prices decline as US crude inventories post first gain in 9 weeks

07/01/2015 Oil prices on July 1 surrendered much of their gains from the day before after the release of a government report showing the first rise in US crud...

FWS issues Shell letter of authorization on Chukchi Sea lease

07/01/2015 The US Fish & Wildlife Service issued Shell Gulf of Mexico Inc. a letter of authorization (LOA) related to the potential disturbance of polar b...
White Papers

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by
Available Webcasts


Driving Growth and Efficiency with Deep Insights into Operational Data

When Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST



On Demand

OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Predictive Analytics in your digital oilfield - Optimize Production Yield and Reduce Operational Costs

Tue, Jul 7, 2015

Putting predictive analytics to work in your oilfield can help you anticipate failures, plan and schedule work in advance, eliminate emergency work and catastrophic failures, and at the same time you can optimize working capital and improve resource utilization.  When you apply analytic capabilities to critical production assets it is possible to reduce non-productive time and increase your yield.

Learn how IBM's analytics capabilities can be applied to critical production assets with the goal of reducing non-productive time, increasing yield and reducing operations costs.

register:WEBCAST


Cognitive Solutions for Upstream Oil and Gas

Fri, Jun 12, 2015

The oil & gas sector is under pressure on all sides. Reserves are limited and it’s becoming increasingly expensive to find and extract new resources. Margins are already being squeezed in an industry where one wrong decision can cost millions. Analyzing data used in energy exploration can save millions of dollars as we develop ways to predict where and how to extract the world’s massive energy reserves.

This session with IBM Subject Matter Experts will discuss how IBM Cognitive Solutions contribute to the oil and gas industry using predictive analytics and cognitive computing, as well as real time streaming for exploration and drilling.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected