Gulfsands Struggles For Cash As Syria Return Recedes

London-listed independent Gulfsands is in a precarious financial position, three years after it was forced to vacate its only producing acreage, Block 26 in northeast Syria. The block produced 10,300 b/d in 2010.

The company has received no oil revenue, anywhere, since it abandonded the asset and declared force majeure in December 2011, shortley after the start of the Syrian conflict. The “facilities remain in good order in Syrian/Kurdish controlled areas,” Gulfsands says, adding that the firm is “entitled to receive [its] revenue share for oil produced since mid-2011.” The firm does not say how much oil it thinks has been produced since it quit the acreage, or who it thinks has been doing the producing. Officially Gulfsands is operator with 50%, while China’s Sinochem also has 50%.


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