China Hunts Oil
With American companies departing, Russian and Asian firms are filling the gap. Devon Energy sold its interests in Syria to Gulfsands, its partner in a joint exploration contract. Gulfsands then sold 50 percent of the project to SoyuzNefteGas, a Russian oil and gas company. A Russian company was contracted by the Syrian government in December to build a $2.7 billion oil processing plant in central Syria.
In January, an Indian oil and gas major and a Chinese rival won a joint 37 percent stake in a Syrian oil and gas field in a $573 million deal with Petro-Canada. Petro-Canada said it was selling its 37 percent share to reduce its political risk profile in Syria.
Other than economic benefits, Syria stands to gain politically by having the sympathetic ear of Russia and China, two of the five permanent members of the United Nations Security Council.
The Security Council is presently assessing a draft resolution submitted by France demanding Syria establish formal diplomatic relations with neighboring Lebanon and demarcate the border between the two countries. Syria has decried the proposed resolution, arguing that its bilateral relations with Lebanon is not the affair of the UN, a stance that has won Russian support.
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