$430 million Syrian gas project

France's Elf Aquitaine and Houston-based Conoco announced on Monday the signing of a gas project contract in eastern Syria's Deir ez Zor region. The two companies have equal interest in the $430 million project.

An Elf Aquitaine press release said the project calls for the construction of a gas-gathering system and gas processing plant servicing the Tabiyeh, as well as 250 km pipeline, designed to transport 150 million cubic feet daily of residue gas to an existing gas grid, located close to Palmyra, the release said. During the first years of the project's implementation, gas will be reinjected to optimize condensate recovery.

The project is being undertaken in a region of Syria in which Elf Aquitaine currently produces 60,000 barrels of oil per day, Conoco said in a similar release that the project, which is expected to be completed in 2001, is its first in Syria.

Conoco said the project will gather and process 175 million cubic feet of gas per day and develop and recycle 280 million cubic feet of gas per day from the Tabiyeh field. It added that the project "demonstrates Syria's concern about environmental issues within the country," Rob McKee, executive vice president for Conoco's worldwide exploration production said.

Elf Aquitaine said the project "complies with Elf's objective to reduce greenhouse gas emissions 15% by 2005," and both companies noted that the project enhances their activities in the Middle East.

Conoco will lead the operation of the project for the first four years, after which the Syrian National Petroleum Company will assume control.