GULFSANDS Petroleum said it is suspending exploration activities in Syria, reversing its decision to continue drilling despite the ongoing instability in the country.
The UK independent has forcefully defended its Syrian business even as international pressure on Syria has grown. Its decision came two days after announcing strong drilling results.
"It is disappointing to be obliged to cease exploration following a recent run of considerable success and with substantial exploration potential still untapped," Gulfsands said.
The firm has budgeted around US$500,000 a month to pay its near 100 strong Syrian workforce and maintain a local presence without exploration.
The Syrian-focused producer said it would retain a full exploration capability in Syria and remains hopeful of continuing its work when the "present difficult situation is resolved."
While not technically required by EU sanctions, Gulfsands said the suspension of exploration is “consistent with the intent of the sanctions.”
In December, Gulfsands ceased production in Syria to meet EU sanctions, a move that curtailed a key revenue source.
The move follows a decision by Shell and other foreign majors to pull out of Syria following EU sanctions.
Syrian opposition groups are lobbying the United Nations this week to enact a tough new resolution on Syria.
Subscribe to this comment's feed
