Croatia’s INA halves Syrian oil output after EU sanctions

Croatia’s INA, one of the most active foreign companies in Syria, has halved its oil production in the country from some 3,000 b/d to 1,500 b/d, the company said Wednesday.

The move follows EU sanctions banning the import of Syrian crude oil, which has led to cargoes failing to find buyers.

"Due to the recent developments and requirements, INA has adjusted its average daily production rate in Syria, reducing it by 1,500 b/d of oil," the company said in a statement.

Before the sanctions, INA, which is majority controlled by Hungary’s MOL, was producing 3,000 b/d of oil.

It also produces larger volumes of gas — some 270 million cubic meters/year on average.

INA said it would continue to monitor closely the developments relating to Syria and "provide the public with information on these developments."

INA also has exploration assets in Syria, and has said it plans to triple its Syrian oil and gas output by 2012-13.

In the first half of this year, the MOL group’s total hydrocarbon production was just over 151,000 boe/d, meaning the cut in INA’s Syrian production will reduce overall output by 1%.

INA sells all of its Syrian output domestically and is therefore not directly affected by the EU’s import sanctions, analysts at Budapest-based KBC Securities said in a note Wednesday.

The cut in production therefore likely reflects a shortage of storage space, as other firms unable to export their output have tied up most oil storage capacity, KBC said.