By OGJ editors
HOUSTON, June 2 -- Oklahoma City-based oil and natural gas independent Devon Energy Corp. has signed $17 million production-sharing agreement to explore for oil and natural gas in Syria.
Devon and its partner, Gulfsands Petroleum Ltd. of Houston, entered into the agreement covering Block 26 covering more than 11,000 sq km in northeastern Syria with the Syrian government and Syrian Petroleum Co. (SPC). Devon is operator of the block with 80% interest; Gulfsands holds 20%.
Under the terms of the PSA, Devon and Gulfsands are obligated to pay a signature bonus of $1 million. In addition, during the initial 4-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's total financial obligation includes the signature bonus.
The agreement excludes SPC's existing fields—which lie within the outer perimeter of the block—which produce more than 120,000 b/d of oil. These will continue to be SPC-owned and operated.
Devon said that the newly formed partnership will enhance its presence in the Middle East. "The Syrian partnership focuses on exploration around areas with proven reserves," said James T. Hackett, president and chief operating officer of Devon. He added, "It could, over time, expand to include cooperation between (SPC) and Devon on additional development and production enhancement projects in the area."