Sinopec pays $2bn for Syrian heavy oil assets

25 September 2008

Chinese oil firm Sinopec has paid $2bn to buy Tanganyika Oil Company, which holds the rights to develop more than 180 million barrels of proven heavy oil reserves in Syria.

The Canadian firm has been developing the Oudeh, Sheik Mansour and Tishrine concessions in the northeast region of Syria for several years, after signing production-sharing deals with the state-run Syrian Petroleum Company.

Although the three fields hold about 184 million barrels of oil in reserves, Tanganyika only expects production of about 12,800-barrels-a-day (b/d) by the end of 2008.

The state-run China National Petroleum Corporation (CNPC) already holds a stake in Syria’s Al-Furat Company, whose 36 producing fields are expected to produce 170,000 b/d in 2008 (MEED 29:8:08).

Syria recorded a 6.5 per cent drop in oil production last year to 394,000 b/d and a 5 per cent decrease in annual gas output to 183.6 billion cubic feet.

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.