Petro-Canada to Negotiate Contract for Syrian Gas Project

Petro-Canada and its partners Occidental Petroleum and Petrofac, following a competitive bidding process, have been selected to enter into negotiations with the Syrian Ministry of Petroleum and Mineral Resources to conclude a contract for the North and South Middle Area Gas project. Negotiations to finalize the terms and conditions of the Production Sharing Contract, with Petro-Canada as operator, will commence immediately.

Peter Kallos, Executive Vice President of the International Business Unit, commented, "Petro-Canada's international strategy is to strengthen our portfolio of long life assets by building on core areas where we have established working relationships and a knowledge of the business systems. We are committed to expanding our existing investment in Syria and this project is an excellent platform from which to grow. As long-life reserve assets, Syria's Middle Area Gas fields fit well with our strategy."

The proposed project involves appraising and developing up to 15 gas discoveries. The fields are located in two clusters: one east of the city of Homs and the other southeast of the city of Alleppo. Two gas treatment and separation plants are planned and gas will be destined for the domestic Syrian market.

This project complements Petro-Canada's international development strategy, further supporting its existing operations in Syria.