The ongoing crisis in Syria has forced Middle East-focused explorer Gulfsands to switch its focus to Morocco, the company has admitted.
The company, which posted a half-year lost of $11.8million, declared force majeure on its operations in the crisis-torn country at the end of 2011, and has seen the situation deteriorate since then.
The company, which had a 50% operating stake with Sinochem for a 5,414 square kilometre block in the country, has been forced to withdraw operations from Syria as a result of EU sanctions, and cut its exploration and production in the country.
“Unfortunately, the protracted nature of the suspension of operations in Syria has also necessitated the review of staffing levels in the country and it is with great regret that the group has had to release a proportion of its workforce,” Gulfsands admitted.
“For the time being, the Group does not intend to make any further enforced redundancies.”
Many of the staff from Syria have been redeployed to Morocco after the company acquired Cabre Maroc from Caithness Petroleum earlier this year, with first gas from its drilling operations expected next year.
Losses at Gulfsands narrowed from $18.1million last year, with lower exploration write offs and reduced expenses, while the mothballed Syrian operation is valued at more than £100million.
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