'Following recent discoveries of gas and condensate in the Hayan block, we are planning to build a gas treatment plant with capacity of 3.5 million cubic metres a day [cm/d] - an LPG plant will be part of the project,' says an INA representative.

INA has already concluded a gas sales agreement with Syrian Petroleum Company (SPC). 'The gas will be targeted at the local market and we plan to use the gas to create LPG products for domestic use,' says the representative.

INA made gas discoveries in August 2002 following the completion of its exploration wells, Jihar 1 and Al-Mahar.

The company signed an exploration and production sharing agreement (EPSA) in 1998 with SPC (MEED 9:8:02). It also signed an EPSA with SPC in January 2004 to develop block 10 in the west (MEED 19:9:03).

'The contract [for block 10] was ratified by the Syrian parliament last year. We are planning to drill our first well in late April or early May,' says the representative. Crosco Integrated Drilling & Well Services Company, an upstream subsidiary of INA, has the drilling contract. Crosco has started well logging services for Hayan Petroleum Company - the joint venture project company established by INA and SPC - with the assistance of the US' Schlumberger.

INA is also participating in the fifth oil and gas licensing round for which at least 23 bids were submitted in late December.

Eight blocks - 5, 7, 9, 13, 15, 16, 19 and 21 - covering a total area of 65,000 square kilometres, are up for bid in the licensing round, which will be awarded on the basis of 25-year EPSAs (MEED 13:1:06).