Sinochem, Gulfsands shut down Syria oil ops
* State-controlled chinese group caught in EU sanctions
* Gulfsands shares fall
By Tom Bergin
LONDON, Dec 12 (Reuters) - Chinese state-controlled Sinochem and UK-listed explorer Gulfsands Petroleum have shut down their oil operations in Syria following European Union sanctions related to the crackdown on the uprising against the rule of President Bashar al-Assad, Gulfsands said.
Although China has resisted sanctions on Syria, Sinochem is bound by EU sanctions since it bought its interest in the Syrian fields by taking over UK-listed Emerald Energy, through which it still owns the assets, a Gulfsands spokesman said on Monday.
Syrian state-controlled General Petroleum Corporation (GPC) will continue to produce oil from the fields, in exploration block 26, the company said in a statement.
Analysts said the further development of the block would be delayed, postponing expected cashflows from this.
The Syrian fields are the only cash-generating assets Gulfsands owns, save for a few small interests in the U.S. which it is selling. However, a spokesman said it had $120 million on the balance sheet and no debt.
The company said it would retain a presence in Syria.
Sinochem declined immediate comment.
Gulfsands shares, which have lost more than half their value so far in 2011, were down 7.9 percent at 171.5 pence by 0930 GMT. (Reporting by Tom Bergin; Additional reporting by Tresa Sherin Morera in Bangalore; Editing by Jon Loades-Carter)
- Tweet this
- Share this
- Digg this
- Moscow fights back after sanctions; battle rages near Ukraine crash site |
- UK's Lloyds says case strengthened for re-starting dividends
- Insight - European regulators training sights on Google's mobile software
- Netanyahu vows to complete Gaza tunnels destruction |
- 'Complacent' NATO unprepared for Russian threat - MPs