Gulfsands Petroleum slumps on Syria sanctions | Interactive Investor

Gulfsands Petroleum slumps on Syria sanctions | Interactive Investor
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Oil and gas producer Gulfsands Petroleum (GPX) said it was reviewing the impact of the latest European Union sanctions on Syria, where it owns a 50% interest in Block 26.

At the end of last week, the EU stepped up action against Syria's oil industry, as part of its campaign to isolate President Bashar al-Assad's government.

Among the new measures included are a prohibition on the supply of key equipment and technology to the oil and gas industry and the addition of General Petroleum Corporation of Syria (GPC) to the list of proscribed organisations.

As a result of GPC being added to the list of banned organisations, AIM-listed Gulfsands, along with other EU related operators in Syria, is "reviewing the manner in which it interacts with GPC and the implications of these new sanctions for the company's present and planned production activities and its contractual obligations to GPC and the Syrian government.”

It will make a further announcement once an understanding has been reached on the implications of these new sanction measures on its business in Syria, it said.

Gulfsands owns a 50% working interest and is operator of Block 26 in north-east Syria. The Khurbet East oil field was discovered in June 2007 and has been producing at an average rate of around 21,500 barrels of oil per day. A second field discovery, the Yousefieh field, was brought on-stream in April 2010 and has been producing at 2,600 barrels of oil per day.

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