Could the American-Kurdish oil deal bring stability to the region?
August 23, 2020, 6:07 am

Could the American-Kurdish oil deal bring stability to the region?

zara saleh

The United States Treasury Department Office of Foreign Assets Control has approved the first-ever deal for an American firm to develop oil fields and export crude oil in northeast Syria. The contract has been signed between a little-known American firm, Delta Crescent Energy, and the US-backed Kurdish-led Syrian Democratic Forces (SDF), as a most reliable U.S. partner in the battle against the so-called Islamic State.

During a news conference at the State Department in Washington, August 5, the U.S. Secretary of State Mike Pompeo who was asked by U.S. Sen. Lindsey Graham, has said that the US has approved the oil deal to modernise the oil fields in northeast Syria. After a part of American troops has been withdrawn from northeast Syria that control by Kurdish forces in October 2019, US President Donald Trump has declared that he will keep its troop to secure the oil fields.

By giving this exceptional approval to the Delta Crescent Energy, the US purpose is to secure the oil fields first and then to isolate the Assad regime and to cut him out of benefiting from legal energy production in the northeast Syria. Moreover, this license will allow also the American company to work freely in Syria as the Treasury Department has exempting the Delta Crescent Energy from the Caesar sanctions against Assad's regime.

Arguably, the American deal has angered Russian as the main competitor to win the oil deal in the areas led by Kurdish forces. Moscow has criticized the US deal and described the deal as an American attempt that continues to "plunder Syria's natural resources". Meanwhile, the Syrian government has described as the deal as the US means to steal Syria's oil and the Syrian Foreign Minister Walid Al-Mualim has said "the agreement is null and void and has no legal basis". Turkey, which stands always against Kurdish rights and ambition, has also criticised the deal as breaking the international law and "violating territorial integrity, unity and sovereignty of Syria". Whereas, Iran as the other Russia and Turkey's ally in Astana Agreement, has declared that the deal is "a violation of Syrian sovereignty”.

In contrast to the Russian and Assad's regime reactions, the US company's shared founders had confirmed the goal of the that will focus on developing and upgrading about 60% of the Syrian oil fields that now under the Syrian Democratic Forces (SDF). Added to that the Delta Crescent Energy procedure will engage in several aspects of energy development, transportation, marketing, refining, and exploration in order to develop and redevelop the infrastructure in the region and to help the people in the region get their products into the international market. This upcoming plan has been confirmed by the founders of the American company as well.

Consequently, the American investment in oil fields in northeast Syria, definitely, will be a great opportunity to stabilise the region and bringing economic and political security to the northeast Syrian components, that can improve the people’s live. Furthermore, the Syrian Kurds with the other components in the region that led by the Kurdish administration such as Syriac and Arab, are welcoming the oil deal because for the decades the Kurdish region has been suffered from the Assad's regime marginalised policies.

Even before the Syrian conflict, nobody of the Syrian people has benefited from the oil production, which was around 400,000 barrels of oil per day, for more than five decades. Whereas the whole budget that comes from the oil production was transferred to the Assad's family account directly, and Syrian people were not allowed even to ask about it. Otherwise, they will be under the risk of arrest or vanishing.

As a result, by having the US oil companies involved in developing the oil fields in Syria will be a great factor for stability of the region and will strengthen the American relation with its main ally the Kurds, and can prevent any Turkish attacks or intervention again as had happened in October 2019 after the US withdraw part of its troops from Syria.

Zara Saleh

The Kurdish hope and struggle after 100 years of the Treaty of Sevres The American-Russian battle in northeast Syria

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.