Marathon signs new PSA

12 May 2006
The US' Marathon Oil Corporation signed in early May a $125 million, 25-year production sharing agreement (PSA) with Syrian Gas Company (SGC) for two fields near Palmyra. The contract, which has a possible five-year extension, will cover exploration and development of the Al-Shaaer and Al-Shareefa fields, 120 kilometres east of Homs, which may contain up to 2 million cubic metres a day of gas and 5,000 barrels a day of oil.
'The figures quoted [in local newspapers] are estimates of resource potential and are not approved reserves from Marathon's data,' says a company representative. 'It is premature to give [expected] production levels and details of well spudding dates.'

In December, Marathon started negotiations with SGC to settle a dispute over the two fields under which a new production sharing contract would be executed and Marathon would have the right to sell all or a significant portion of its interest to a third party.

'We have retained that flexibility,' says the representative. 'Marathon discovered the two gas fields in the 1980s and submitted development plans in the 1990s none were approved. Damascus claimed the PSA had expired. Since then we have been in dispute over how to settle this matter' (MEED 16:12:05).

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications