Gulfsands reviewing impact of Syria sanctions

Gulfsands Petroleum said it was reviewing the impact of the latest EU sanctions on Syria on its production activities and on its contracts with the Syrian government and the General Petroleum Corporation (GPC).

The European Union stepped up its sanctions against Syria’s oil industry last week, blacklisting state-owned firms including GPC that oversee trade and exploration.

"Gulfsands … is reviewing the manner in which it interacts with GPC and the implications of these new sanctions for the Company’s present and planned production activities and its contractual obligations to GPC and the Syrian government," the company said in a statement on Monday.

The company added that it expects to make further announcements once an understanding was reached on the implications of the sanctions on its business.

On Friday, a spokeswoman told Reuters the company sells 100 percent of its oil to GPC, but declined to comment on whether it would stop production in Syria, where it is also engaged in exploration activities.

Gulfsands is the operator of the block 26 Production Sharing Contract in north eastern Syria and until earlier this year production from the country accounted for over 90 percent of its total output.

The company said earlier in November it was producing at around a fifth of its normal levels in Syria on government instructions to cut output. The firm said in October it had not yet received payment for its August production.