Proposal for dividing Syria

KURDISTAN OIL DEVELOPMENT

Sardar Pishdare

INTRODUCTION

This proposal concerns the rational and efficient, near-term development of up to 1 Million barrels/day of expanded, made over or new oil production capacity within a period not exceeding 6 months from the foundation of an oil development, production and transportation entity in Kurdistan.

The key elements of this proposal feature the creation, under international guarantee, of a 400-kms Free Zone, extending eastwards from the Syrian-Lebanese border on Mediterranean Sea, and extending to the North, bounded by the currently inactive DORTYOL pipeline and rail line (built and owned by French interests) up to Iraqi Border.

Further to this proposal, a concessionary and operating company will be founded, the Kurdistan Oil France Company (KOF), incorporating Kurdish and French interests on a 50/50 basis, together with all those necessary, adequate and sufficient security provisions and structures in the areas concerned by this proposal.

OIL RESERVES AND KURDISTAN

Greater Kurdistan covers a large area of territory currently occupied and/or claimed by Syria, Turkey, Iraq and Iran. Within the effective area of Greater Kurdistan, for example as recognized by the Treaty of Sevres, currently known, proven, inferred and likely oil reserves (and both associated and 'stranded' gas reserves) are very large. Further and particularly concerning the area made up by the aforesaid Free Zone, in majority lying in Syrian occupied territory, his development of oil production capacities has been deliberately held at a low level.

Numerous smaller and medium-sized oil fields, generally capable of production volumes in the region of 500 – 3000 barrels/day, each, can be quickly developed and brought into reliable, long-term operation. Other and numerous oil fields, currently producing small volumes and relying on outdated and inadequate or inefficient installations, equipment and management, can be quickly made over, renovated or upgraded to yield much more production, on a reliable and long-term basis.

Overall, it is fully possible on technical grounds to obtain the stated objective, of 1 Mbd of new or expanded production within 6 months following the foundation of the aforesaid KOF entity, of course with adequate and effective international guarantees, and local security, to be provided with majority Kurdish participation.

FOUNDATION OF KOF

The foundation of an internationally recognised operating entity is the first step towardsrelaising the goals of this proposal. KOF, after discussion, negotiation and appraisal of all interests by all partners, may initially be given the objective of developing and securing reliable oil production capacity, and the transport of oil to the Mediterranean Sea, within Kurdish Iraq.

This will concern the eastern extremity of the proposed Free Zone.

Several advantages may accrue to a programme featuring this element that is initial oil development, etc, in Kurdish Iraq:

1. Kurdish influence and political control in Kurdish Iraq is now an established a recognized fact.

2. Current oil field operation, and especially the transport of oil, is unsure and inefficient, whether concerning crude or refined products.

3. Establishment of Kurdish control, with provision of adequate and effective security along the DORTYOL line and rail line, through the construction of fortified settlements, will ensure reliable transportation of oil to the Mediterranean Sea.

PROGRAMMING

It. is first necessary to found an international oil concern of a concessionary nature, charged with the development, upgrading, and transportation of Kurdish oil. With French partnership, this would be achieved through founding an entity such as KOF. In the case of other partnering interests, for example US, British or Indian interests expressing interest and wishing to participate in the foundation of an operating entity, the name of the entity will be modified, to become KO Corporation. In all cases, capital ownership and management responsibility will be on a 50/50 basis, Kurdish and International interests.

Following creation of the operating entity, programming will feature the simultaneous development or provision of

1. Secure settlements and security facilities along the DORTYOL line and rail line

2. Oil development, upgrade, renovation and make overall

3. Construction and supply of all installation and ancillary equipment, as required.

Through detailed planning and programming, all the above may be assured within a timeframe not exceeding 6 months, after creation of the KOF or KOC, with French or other international partners.

FINANCIAL AND ECONOMIC ASPECTS

This proposal concerns the creation of an oil (and associated gas) producing entity with an initial objective of attaining 1 Mbd of oil production capacity within 6 months from the incorporation of a Kurdish-International operating entity, with adequate and full security in the areas concerned by this proposal, notably with regard to transportation facilities and installations.

At current prices, the turnover value represented by new or increased oil production of 1 Mbd is approximately 18 000 Million US dollars/year. Investment and security provisions may be estimated provisionally at approximately 3 – 4.5 Bn US dollars, with relatively low recurring expenses, costs and charges.

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