Gulfsands look to avoid Syrian oil industry sanctions

Gulfsands Petroleum is looking to avoid the sanctions of the Syrian oil industry by building a new base outside the country.

The firm will maintain its presence in the country, but will look elsewhere for production, with plans to consolidate its interest in Tunisia.

The main reason for the move was the political and humanitarian crisis in the country, which is shading what would have otherwise been a very successful year for the oil company.

Gulfsands ceased its involvement in exploration, development and production in the country back in December, when it declared force majeure on Block 26 PSC as international sanctions tightened.

This will come as some dismay to the company and investors, as results prior to the political upheaval showed that the block was performing well, and would continue to perform well.

Chairman Andrew West said: “We can but hope that the coming months will bring some respite from the present acute difficulties in Syria, most importantly for the population but also for the company and its shareholders.

“In the interim, we are leaving no stone unturned in our continuing efforts to find attractive opportunities to deploy our financial and technical firepower into "fast track" geographical diversification.”

Posted by Claire Manning