Gulfsands sacrifices top executives to continue development of Syrian oil find

Gulfsands Petroleum has announced that two of its key executives, including Chief Executive John Dorrier, were resigning from the board and that it was relocating its principal office to London.

The other executive is David DeCort, the company's Chief Financial Officer.

The US-based independent oil and gas company provided no explanation for this move. However, the two decisions appear clearly motivated by the recent executive order by US President George Bush banning any dealings between US individuals and corporations with Rami Makhlouf, a shareholder in the company. Mr Dorrier and Mr DeCort hold American citizenship.

Through his investment Fund, Al Mashrek Fund, M. Makhlouf owns 6.30 percent of the shares.

Andrew West, the current Chairman of the Board, will take over as an interim Executive Chairman until new appointments in the Board are made. Both Mr DeCort and Mr Dorrier remain shareholders in the company.

The move also reflects the growing importance for the company of its Syrian operations. The statement from the company explained that the decision to relocate the centre of operations of the company and its principal office to London from Houston, Texas, were motivated by 'the decisive shift of the Company's focus to the Middle East and in particular the increasing importance of its operations in Syria following the commercial discovery at Khurbet East in Block 26.'

Gulfsands Petroleum announced significant discoveries in the Khurbet East field in Block 26 with reserves of 66 million barrels. First production in the field is targeted for the fourth quarter of this year.

Following the announcement of the US sanctions, speculations varied as to the action Gulfsands would take as to its interests in Syria. Its decision to relocate to London and to do without its American executives provides the first indication that it intends to continue the development of its Syrian interests.

In a separate development, Gulfsands also announced that it was raising USD 18.55 million for the development of the Misan Gas project in Iraq.