Global Biz

Syrian-Chinese gas co-op progressed:minister

(Xinhua)
Updated: 2011-01-17 23:00

DAMASCUS, Syria - Syrian Oil and Gas Minister Sufian Allaw said here on Monday petroleum cooperation between Syria and China has made a remarkable progress and achieved fruitful results.

Related readings: CNPC set to buy 35% stake in Shell's Syria unit

He welcomed the Chinese petroleum companies to take part in new investment opportunities in Syria's land and sea oil fields in an interview with Xinhua at his office in Damascus.

He hailed the role of China National Petroleum Corporation ( CNPC), saying "CNPC has worked with Kawkab oil company, a joint Syrian-Chinese company which started operation in 2003, to help increase the oil production in Gbeiba oil field to 14,500 barrels per day (BPD) from 6,100 BPD," Allaw said.

"There are nine joint petroleum companies, including Shell and CNPC, working in Syria. Petroleum cooperation between Syria and China covers the fields of exploration, refining, cadres training and petroleum equipment," he said.

"We are planning to send Syrian national cadres to Chinese petroleum companies to receive training to enhance cooperation between the two countries in this field," Allaw added.

He also affirmed his country's plan to manufacture petroleum- related equipment locally in collaboration with the Chinese companies.

"Our present plan is to set up a local petroleum-related equipment corporation with CNPC and other Chinese companies to cover local and regional demand," Allaw said.

In May 2010, CNPC and Shell concluded an agreement under which CNPC acquired a 35 percent share in Syria Shell Petroleum Development (SSPD). The SSPD has share in three production licenses, including Deir-Ez-Zor, Fourth Annex and Ash Sham.

Syrian Ministry of Oil and Mineral resources announced recently that Syria invites international companies to invest in eight new oil blocks and develop old oil fields in Syria.

Syria had its national companies exploring its oil and gas since 1968 until the 1980s, when foreign companies entered the Syrian oil market. These companies helped increase Syrian oil production to some 600,000 BPD in 1996. Oil production in Syria, however, deteriorated gradually to 386,800 BPD in 2010.