Devon signs agreement for work in Syria

Oklahoma City-based Devon Energy said May 31 that it and partner Gulfsands Petroleum have entered into an agreement with the Syrian government and the Syrian Petroleum Co. to explore for oil and natural gas in Block 26 in northeastern Syria.

The terms of the exploration, development and production sharing contract require the companies to pay a signature bonus of $1 million and, during the initial four-year term of the contract, to conduct geologic and geophysical studies, acquire seismic data and drill four exploration wells. Devon said the companies’ total obligation under the contract is some $17 million.

Block 26 covers an area of more than 11,000 square kilometers and the agreement excludes the Syrian Petroleum Co.’s existing fields located within the outer perimeter of the block. Devon said the existing fields are producing more than 120,000 barrels of oil per day and will continue to be owned and operated by the Syrian Petroleum Co.

“The Syrian partnership focuses on exploration around areas with proven reserves. It could, over time, expand to include cooperation between Syrian Petroleum Co. and Devon on additional development and production enhancement projects in the area,” James Hackett, president and chief operating officer of Devon, said in a statement.