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Syria stopped paying oil companies

LONDON, Nov. 11 (UPI) -- Though oil production in Syria is ongoing, sources close to the government said Damascus stopped paying supermajors Royal Dutch Shell and Total.

Sources familiar with the Syrian energy sector told the Financial Times that major energy companies working in Syria were getting paid by the government until a few weeks ago. Payments slowed and eventually stopped as European governments put more pressure on Damascus for its crackdown on opposition protesters.

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"Payments have been delayed and some are outstanding," said one industry insider who spoke to the Financial Times on condition of anonymity. "My sense is the government has no cash."

Shell and Total are among the largest investors in the Syrian energy sector. The country had its $3.5 billion-a-year oil export revenue curtailed by an embargo from European consumers.

Ayham Kamel, a Syrian expert at the risk consultant company Eurasia Group, told the newspaper the looming economic issues were "the most significant challenge to the regime."

London-listed Gulfsands Petroleum announced in October it was instructed by Syrian authorities to continue keeping oil production low in the country.

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