Re-Entry Planning

Gulfsands’ core Syria strategy is to Protect and Preserve its rights related to Block 26 and to Prepare for re-entry into Syria and a return to operations. While the Block 26 PSC remains in force majeure due to applicable sanctions, Gulfsands undertakes its re-entry planning in a strict observance of applicable sanctions and laws.

Gulfsands builds ESG and sustainability considerations into all its re-entry planning, as well as respecting the UN Security Council Resolution 2254, which appears to be the accepted blueprint for a Future Syria. It also maintains compliance with all local laws to protect its rights under its PSC while it remains in force majeure.

The Board believes, and an independent Competent Persons Report (“CPR”) has confirmed, that upon re-entry, on a gross basis, Block 26 could be proven to contain over a billion barrels of recoverable resource with the potential for production levels of around 50,000 boepd from existing discoveries in the near term, and over 100,000 boepd from a full block development incorporating the potential exploration upside.

In addition to the technical aspects of the Company’s projects, Gulfsands re-entry plan also incorporate the following key objectives:

1. Support the safety and security of our in-country team and national staff.
2. Stay Legal – understand and ensure compliance with local and international laws & all applicable sanctions
3. Protect and preserve our existing asset value in Syria by continuing to meet our PSC and other contractual obligations where possible under sanctions and mitigate value erosion and damage by non-state actors.
4. Protect the reputation of Gulfsands and partners and maintain support for Gulfsands and its partners with stakeholders globally and in-country.
5. Protect the environment: ensuring clean-up of current operations in Block 26 and implementation of leading sustainable oil field practices.
6. Sharing the benefits: Gulfsands will ensure immediate benefits flow to the Syrian people, through the generation of employment and training and community outreach programs, as well as specific Humanitarian initiatives.
7. Implement Gulfsands Re-Entry and Re-Engagement Strategy which allows us to actively and safely recommence Syrian Operations when force majeure and sanctions are lifted. This includes:
   1. Stakeholder Engagement
   2. ESG Plan Implementation
   3. Adopt HSSE & Operational Management System
   4. Journey to 100,000 barrels per day FDP Execution
   5. Implement Legal and Financial frameworks and processes
   6. IT and Digitisation roll out