CNPC, a producer and supplier of oil and gas in China, and Shell have finalized an agreement under which CNPC has acquired a 35% stake in Syria Shell Petroleum Development (SSPD), which is currently wholly owned by Shell.

SSPD has interests in three production licenses including Deir-Ez-Zor, Fourth Annex and Ash Sham that are operated by the Al Furat Petroleum Company (AFPC) (Shell interest 31.25%).

This agreement strengthens the partnership between Shell and CNPC. Both parties will look to continue growing and investing in opportunities in Syria’s upstream industry, CNPC said.

The licenses cover some 40 oil fields, where production was 23 thousand boe/d (Shell share) last year. Shell has a presence in the country since the 1940s and has been a shareholder in AFPC for the last 25 years.

CNPC already has an interest in the production licenses and in AFPC through its 50% ownership of Himalaya Energy Syria.