Devon
signs production sharing agreement in Syria
Posted: 2 June 2003
Devon Energy announced it has entered into an agreement to explore
for oil and natural gas in Syria.
Devon and its partner, Gulfsands Petroleum Ltd, entered into the
agreement covering Block 26 in northeastern Syria with the Syrian
government and the Syrian Petroleum Company.
Devon is operator and has an 80 per cent participating interest.
Gulfsands has a 20 per cent participating interest.
Under the terms of the Exploration, Development and Production
Sharing Contract, Devon and Gulfsands are obligated to pay a signature
bonus of $1 million.
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 $1 million 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.
James T. Hackett, president and COO of Devon, stated, "This
partnership enhances Devon's presence in the Middle East. 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. Innovation and cooperation created
this novel arrangement with the Syrian Petroleum Company and we
look forward to continued cooperation to make this partnership successful."
Devon Energy Corporation is an Oklahoma City-based independent
energy company engaged in oil and gas exploration, production and
property acquisitions. Devon is the largest U.S.-based independent
oil and gas producer and is included in the S&P 500 Index.
For more information see www.devonenergy.com.
Posted by Richard Price,
Editor Pipeline Magazine
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