Syrian Oil Company reveals initial $110 million loss estimate

Syrian Oil Company says $110 million is not a confirmed loss

The Syrian Oil Company said the $110 million was not proven embezzlement or a confirmed loss, but an initial loss estimate in files under investigation and audit. The company denied reports that Director General Yusuf Kablawi had been detained or that his referral for investigation had been requested.

Scraper SystemSeptember 27, 2026, 12:24 PM

Syrian Oil Company says $110 million is not a confirmed loss

The Syrian Oil Company said the $110 million amount should not be considered confirmed embezzlement or money missing from the company. It said the figure was an initial loss estimate identified in files that remain under investigation and audit.

The company said the amount did not represent the total value of the audited contracts or a confirmed loss. It added that the actual loss and the related responsibilities could not be determined conclusively before the investigations were completed.

The distinction between an estimated loss and a conviction

The company said presenting the estimated loss as embezzlement would erase the distinction between an anticipated loss and a proven loss. It also said treating the investigation stage as a conviction would amount to reaching a verdict before the competent authorities had completed their work.

The company stressed that the terms and signing methods of the contracts varied from one file to another. It therefore said it was incorrect to claim that all the contracts had been concluded by mutual agreement or that all of them involved corruption.

The company said some contracts were signed during an extraordinary and sensitive period when Syria's eastern oil fields and facilities were being brought back under control. It said urgent measures had been taken to protect the wells, facilities and crude oil, treat contaminated water and prevent that water from reaching the Euphrates River.

The company said a technical or operational shortcoming in a contract, or the decision to audit and review it, did not by itself constitute evidence of corruption. It added that an investigation into a specific contract or transaction did not amount to a predetermined conviction for the people or company concerned.

Information about Yusuf Kablawi denied

The Syrian Oil Company said reports that Director General Yusuf Kablawi had been detained or that the Central Inspection and Oversight Authority had requested his referral for investigation were untrue.

Oil-sector audit in Deir ez-Zor

The Central Inspection and Oversight Authority announced on Aug. 22 that it had identified irregularities in the oil sector in Deir ez-Zor province. Twenty-two inspectors took part in the three-month audit and investigations, and the initial loss estimate linked to contracts, maintenance work and mismanagement was reported to exceed $8 million.

The same reviews found that losses arising from price differences between the Central Region administration and transport companies under crude oil transportation contracts amounted to approximately $20 million.

Nine officials were suspended and referred to the judiciary to complete the investigations. The authority recommended terminating some contracts, imposing precautionary measures on the assets of people accused of violations and expanding the reviews.

The Central Inspection and Oversight Authority stressed that the identified irregularities concerned specific individuals and did not represent the performance of all institutions or employees in the oil sector. The company's statement did not clarify the connection between the initial $110 million loss estimate and the previously announced amounts of more than $8 million and approximately $20 million.

Syrian Oil Company says $110 million is not a confirmed loss