A Delaware-based company formed by a former American diplomat, a CEO of a private mercenary company and an old hand in the oil business has inked a deal with U.S.-backed Kurdish rebels to develop crude in Syria.

(By: Raul Diego, Mintpress News) In November of last year, the Pentagon’s assistant to the secretary of defense for public affairs assured reporters during a press briefing that “the revenue from [Syrian oil fields] is not going to the U.S. [It] is going to the SDF”, adding that the purpose of the mission was “to defeat ISIS” and that “securing of the oil fields [was] a subordinate task to that mission”, which was “to deny ISIS the revenues from that oil infrastructure.”

At that time, however, a recently incorporated company in the Delaware jurisdiction named Delta Crescent Energy LLC had already been communicating with members of the so-called Syrian Democratic Forces (SDF) in the northeastern region of Syria for several months about developing and exporting crude oil from the Kurdish-occupied territory.

Already in April 2019, the new oil concern had received a license from the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) to carry on with the work; the same Treasury department that in 2018 had levied sanctions against the Syrian government’s “Petroleum Procurement Network,” targeting companies in Lebanon and the UAE which deliver fuel and natural gas to Syria.

The Syrian foreign ministry issued a statement on Sunday declaring the deal to be illegal and designed to steal Syrian crude. “This agreement is null and void and has no legal basis,” read the statement from Damascus, which condemned “in the strongest terms the agreement signed between al-Qasd militia (SDF) and an American oil company.”

The loose band of Kurdish rebels now known as the SDF was formed after U.S. airstrikes allowed them to take the Syrian city of Kobani in 2015. Subsequent military assistance and training by U.S. forces helped consolidate the 60,000-man army, which has been pivotal in American destabilization efforts in Syria.

Shell company

Delta Crescent Energy LLC was formed in February 2019 in the tax haven jurisdiction of Delaware and lists its address as 1209 North Orange Street in Wilmington, DE; a “tiny brick building,” which is also home to more than 300,000 business entities. Among its neighbors at the cramped address are companies like Apple, eBay, and Walmart, just to name a few.

The company’s officers include George W. Bush’s ambassador to Denmark, James P. Cain – a sports franchise owner who once called for the execution of Chelsea Manning for leaking diplomatic cables to Wikileaks; former Delta Force commander and TigerSwan CEO, James Reese and John P. Dorrier Jr. founder of UK-based, Houston, TX-located, GulfSands Petroleum, which has carried out business in Syria before.

Reese, whose private mercenary company TigerSwan infiltrated and surveilled Dakota Access Pipeline protestors at Standing Rock in 2016, told Fox News in 2018 that “the whole eastern part of Syria” belonged to the U.S. “That’s ours,” he continued, “We can’t give that up.”

The secretive oil deal was a topic of conversation during a Senate Foreign Relations Committee hearing on July 30. When Sen. Lindsey Graham asked Secretary of State, Mike Pompeo if he was supportive of the agreement, he testified that “We are,” adding that it had taken “longer” than anticipated, but it “was now in implementation, and it can be very powerful.”

Oil market viability

Graham praised the blatantly illegal arrangement, saying that it would “improve the viability of the northern oil fields to make them more productive.” Syrian oil fields were producing approximately 380,000 barrels a day until U.S.-backed rebels took over the oil-rich northeastern region of the country after “ousting” ISIS forces – themselves spawned from the EU, the U.S., and the UK  – reducing production to less than 60,000 barrels a day.

The negotiations were brokered by U.S. government officials from the State Department. James Jeffrey, United States Special Representative for Syria Engagement and his deputy, Joel Rayburn were charged with cementing the contract, which the Trump administration still cynically claims was done on behalf of the “Syrian people” and that the U.S. “government does not own, control, or manage the oil resources in Syria. The populations in areas liberated from ISIS make their own decisions on local governance.”

The Pentagon’s spokesperson, Jessica McNulty added that the DoD “does not have an affiliation with any private companies in regard to the oil fields in northeast Syria” and in the same breath expressed how the American military was there to literally protect the interests of the oil company by “securing [the] critical petroleum infrastructure in northeast Syria to deny ISIS access to critical resources and revenue.” McNulty, however, did not mention that the Delaware-based company has plans to sell the oil to “various customers in the region,” including Assad, himself.