Soyuzneftegaz pulls out of Syria blocks

MOSCOW, September 30, 2015 – Russian oil company Soyuzneftegaz is pulling out of its two offshore blocks in Syria due to the civil war, company president and former Russian energy minister Yuri Shafranik said to press on Wednesday.

Though Lebanon, Israel, and Egypt have all struck significant pay over the last year in the Mediterranean, Shafranik explained to reporters that “the risks are very high there,” and so the planned drilling projects for offshore Syria had to be postponed indefinitely. Shafranik also said the company had shut down its two onshore projects in Syria.

Earlier this month, Islamic State militants fought government forces for the control of the Jazal oilfield. The oil industry had been key to the Syrian economy, with an output of about 380,000 barrels of oil per day, until fighting began four years ago.

The conflict in Syria has claimed over 200,000 lives over the last four years, and displaced more than 11 million.

The Russian government has stepped up its military involvement and presence in Syria in the past week, and conducted its first airstrikes in Homs on Wednesday afternoon. Russian president Vladimir Putin has faced international criticism for his continued support of the regime of Bashar Al Assad.

Read our latest insights on: