INA has been involved in E&P activities in Syria since 1998.
• Reserves (SPE 2P, 2012 Y/E): 35.8MM boe
• Production (2012): 3.1 mboepd
On 26 February 2012 INA announced „force majeure“ and temporarily suspended all it’s business activities in Syria until the „force majeure“ circumstances cease to exist.
INA Group has been active in Syrian Arab Republic since 1998 based on signed Production Sharing A greements (PSA). First PSA has been signed for Hayan block C oncession in 1998 and following the successful exploration and appraisal INA has announced six commercial discoveries on Hayan block with significant oil, condensate and gas reserves. Joint Venture Company HPC (Hayan Petroleum Company) was established between INA (Contractor) and General Petroleum C ompany, GPC (Company) in order to carry out petroleum operations on Hayan block.The second PSA covers Aphamia block Concession and became effective in June 2004.
The A phamia block is situated in Hama district, to the north-west of the Hayan block. The Aphamia PSA allows for an initial exploration period of four years and two further extensions to the initial exploration period of two years each. INA fulfilled contractual obligations of the initial exploration period and the first extension of initial exploration period. INA has acquired 270 km2 3D seismic data and drilled four exploration wells (Jaddua-1 dry well, M udawara- 2, M udawara-3 and Beer A s Sib-1 oil and gas suspended wells). O il and gas saturated layers at M udawara and Beer A s Sib structures have been determined. T he second and last extension of the exploration phase operations were interrupted by declaring F orce M ajeure of 26 F ebruary 2012, due to EU/UN sanctions towards Syria. By declaring F orce M ajeure, INA suspended all its petroleum activities in A phamia block as per P SA and recalled all its local and expatriate employees. T he second extension ended on 11 N ovember 2012 with non-fulfilled commitment to drill one exploratory well in order to confirm the commerciality of oil saturated layers. Despite the fact that P SA has expired, INA has not received any comment from GPC or M inistry side yet. INA is withholding its right to continue operations upon lifting Force Majeure.
INA made six (6) commercial discoveries (Jihar, A l Mahr, Jazal, Palmyra, Mustadyra, and Mazrur) on Hayan block Hayan Block development phase started with the first commercial discovery – J ihar, in 2004. INA ’s first oil production in Syria started on 25 A ugust 2005 with Jihar 2 well as part of an early production phase. INA ’s first gas production started in Syria on Palmyra field on 13 December 2006. I n 2008 the construction of the oil-and-gas gathering station started, which was completed in 2009, and in the beginning of 2011 gas treatment plant started. According to the Gas Sales Agreement between SPC , INA and the Syrian Gas Company, INA is obliged to sell its share of the gas and condensate to the Syrian Gas Company.
On 23 F ebruary 2012 C roatia adopted EU sanctions towards Syrian Arab Republic, hence INA declared Force Majeure for Hayan and Aphamia licences on 26 F ebruary 2012. By declaring F orce Majeure, INA suspended all its petroleum activities in Hayan and Aphamia block and recalled all its local and expatriate employees.
Pursuant to Decision of Croatian Government on the implementation of international restrictive measures defined by EU Council Decision 2011/782/ZVSP related to Syrian A rab Republic (Official Gazette N o. 22/12), company General P etroleum Corporation, on which all the rights and obligations from the SPC have been transferred on 14 February 2009 in relation to block Hayan and Aphamia, is defined as designated entity and INA didn’t have other possibility but to announce force majeure and suspend all of its activities under the P SA. General Petroleum Corporation is being listed as a “designated entity” as per restrictive measures leaving INA without other possibility but to suspend performance under the PSA. Current developments being outside the company’s control and with INA staff being repatriated, the company is not able to assess the quality of current operations and level of potential risk relating to external developments. Daily production in Syria amounted to 13. 7 Mboe/d until “Force majeure” announcement and suspension of Ina’s activities.