HOUSTON, Texas The U.S. oil company Conoco and its French joint-venture partner Elf Aquitaine have signed an agreement with Syria to develop that country's natural gas resources for $430 million, Conoco said Saturday. Conoco and Elf each hold 50-percent interest in the project, with Conoco the lead operator, the company said in a statement. The project is Conoco's first in Syria and includes building natural gas infrastructure.

Under the contract, the Conoco-Elf partnership will construct pipeline and plant facilities to gather and process 5.3 million cubic meters (175 million cubic feet) per day of natural gas from oil fields in northeastern Syria. The project also includes the development and recycling of 8.4 million cubic meters (280 million cubic feet) a day of gas from the Tabiyeh field, which is also located in Syria's Deir Ez Zor region.

Gas from the combined facilities will be transported through 250-kilometer (155-mile) pipeline that will connect with an existing delivery system that serves western Syria, including the Damascus area. Construction is to begin in the near future and is expected to be completed in 2001. (AFP)