TOTAL commitment to Syria

The giant oil company started its oper-ations in Syria in 1988. In cooperation with the Ministry of Oil and the Syrian Petroleum Company, Total E&P Syria holds fifty percent control of its operations on a number of fields in Eastern Syria’s Deir ez-Zour region.

As the biggest French investment in Syria (past investments exceed 1 billion US Dollars), their capacity lies in their ability to innovate, to address national needs and to provide assistance when needed and to act as a socially responsible partner in the country. Compared to its other operations in the region, Syria’s is relatively small in terms of investment and reserves, although the Syrian government encourages investments by providing a clear and stable Fiscal system through contracts that are made into laws.

From a strategic point of view, the com-pany’s main challenge is to find ways to ensure their long terms presence in Syria by maintaining an operational size in the country that is compatible with its worldwide activities. An important part of Syria’s GDP is dependant on the oil sector and in the face of its dwindling production, Total is looking into new projects to maintain its presence in the country. Investments are presently being made with new technologies to slow the decline and to maintain the production close to the 30,000 bbls/day. Cooperation can be envisaged on many projects that can maximize the hydrocarbon reserves. To expand its local market share, Total started the distribution of Total Lubricants that met great success in 2006.

In the past few years, Syria has witnessed economic stimulation and a steady growth in population. While the upstream sector (oil production and export) is not affected by local markets, the downstream sector (reining and marketing) is. Total’s lubricants did very well in 2006 due to favorable marketing conditions and although Total’s downstream branch distributes many products, there is still room for expansion in the local market, such as the introduction of petrol stations once the right conditions are approved by the government.

There is no doubt that in the long term, many projects with hydrocarbons can be considered. Syria’s position is important geographically, and can there-fore play a crucial role as hub in the transportation of oil and gas through the construction of pipelines from neighboring countries.

Although these projects are decided by the Syrian government, oil companies, such as Total, can be sought as a partner. On a positive note, an ongoing project is the Arab Gas Line, which transports gas from Egypt to Jordan and Syria. This project is a governmental initiative, and provides opportunities for importing gas into Syria for local consumption and for re-export to neigh-boring countries. In a message addressed to Total’s employees, Total’s CEO Christophe de Margerie stressed on their “commitment to contribute to the development of host communities.” True to his word, Total E&P Syria has financed and assisted in the implementation of several projects around Syria that respond to the development needs of local communities. This includes the financing and implementation of local training centers and health clinics in Deir ez-Zour, health clinics in Aleppo and the sponsorship of music events, art events and archeology.

In its support Total E&P Syria adopts an integrated approach towards sustainable development. As an interactive company they invest in training and technology transfer with the Syrian Petroleum Company (SPC) and Syrian Gas Company (SGC). Total E&P Syria held several seminars on economics, reining and human resources. Their aim is to transfer their know-how to their Syrian partners which they believe constitutes a good partnership. A seminar will be held in July with the Syrian companies on reining as part of good relationship with the Syrian authorities.

Total E&P Syria sustainable development program reflects its commitment to support economic reform efforts led by the government in Syria. Beside the government institutions, they partner in multiple areas and in different projects with the major development agents in Syria including international organizations such as the UN agencies, foreign cultural centers in Syria and NGOs focused on sustainable development. Added to the financial support, they bring value through assistance in management and in knowledge transfer.

Total E&P Syria has been providing significant support in the education development in areas that responds to emerging needs in Syria such as the banking. In line with their business principles and diversity policy, they have launched in 2006 the “Syrianization” program that aims at increasing the percentage of Syrian employment in the different levels of the hierarchy including the managerial level.

Within the same diversity policy they are emphasizing on respecting gender indicators in employment. “Our core values are professionalism, respect for employees, and ongoing concern for safety and environmental protection” stresses De Margerie.

Their first priority is their Health Safety and Environment (HSE) record. In 2006 the company had remarkable improvement in its HSE record and is currently in the process of doing the ISO 14001 certification for Total E&P Syria and Deir ez-Zour Petroleum Company, making them the first certified oil companies in Syria. In addition to a non-smoking policy in public areas, campaigns for defensive driving are ongoing and monitoring devices were installed in company cars to ensure adherence to basic safety principles. The company also strictly attends to the health and safety of their employees.

Total has made a number of proposals to the Syrian government to expand their activities that would benefit both parties. Total E&P Syria’s current con-tract terminates in 2012. With the declaration of the Minister of Oil and Mineral Resources of last week, approval for a renewal of Total’s contract for a further ten years is being considered.