The takeover of main oilfields via the Syrian govt from Kurdish forces is predicted to assist Damascus spice up its oil income and cut back imports. The restore of broken calories infrastructure and development in safety is essential to attracting funding, analysts say.
“These assets were important for different players in the Syrian war over the past several years, including the Assad regime as well as ISIS … in providing revenue and electricity.”
In a sweeping offensive closing week, Syria’s army reclaimed the rustic’s major energy-producing area of Deir Ezzor and Raqqa within the north from Kurdish-led Syrian Democratic (SDF) to consolidate its grip at the nation.
Deir Ezzor properties essential websites equivalent to Al Omar oilfield, Syria’s largest, and Conoco gasfield.
The oilfields were beneath the keep watch over of various factions because the outbreak of civil warfare in Syria in 2011, together with the Unfastened Syrian Military in addition to ISIS. On the finish of 2017, SDF, with fortify from the world coalition controlled to take keep watch over of it.
The takeover of the 2 fields via the Syrian govt “marks the most significant consolidation of energy assets since the fall of the Assad regime in December 2024”, mentioned Benjamin Feve, senior analysis analyst at Karam Shaar advisory based totally in Istanbul.
“It restores formal state control over Syria’s most strategic hydrocarbon assets, which is a prerequisite for coherent energy policy, national revenue collection and sector-wide rehabilitation.”
Ahead of the civil warfare began in 2011, oil used to be a central pillar of Syria’s economic system. It accounted for as much as 25 in keeping with cent of its gross home product, the Global Financial Fund estimated, and about $3 billion in annual income.
Pre-civil warfare, Syria produced an estimated 380,00 to 400,000 barrels of oil in keeping with day and 900 million cubic ft (mmcfd) in keeping with day of gasoline ahead of the outbreak of the civil warfare in 2011. Present manufacturing is estimated at about 110,000 bpd to 120,000 bpd, basically from the north-eastern area of the rustic.
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On the other hand, possession on my own does no longer translate into upper output and there’s a want to spice up funding to fix broken pipelines and kit on the two fields.
“With rehabilitation of wells, water-injection systems, power supply and pipelines, Al Omar could plausibly return to 25,000–40,000 bpd of production in two to four years time, from 14,200 bpd in late 2025,” Mr Fave mentioned.
Syria is aiming to draw funding in calories and different sectors because it makes a speciality of rebuilding its economic system after greater than 13 years of civil warfare.
Nations equivalent to Saudi Arabia, the UAE, Turkey and Qatar have introduced new investments prior to now few months together with a $7 billion deal in Would possibly to construct sun and herbal gasoline energy crops via Qatar’s UCC Maintaining, US corporate Energy world and Cengiz Enerji of Turkey.
The UAE’s Dana Gasoline additionally signed an preliminary settlement with Syrian Petroleum Corporate to discover redevelopment and growth of herbal gasfields in Syria together with Abu Rabah, one of the vital greatest within the nation.
The revival of oil sector may even assist Syria cut back oil imports from international locations equivalent to Russia and Saudi Arabia, meet its home necessities and triumph over energy shortages.
Lately, Syria is processing crude at its two home refineries at Baniyas and Homs, and plans to construct every other website with 150,000 bpd capability.
“With the integration of the Kurdish-controlled region, the Syrian government is likely to prioritise reducing import dependence for domestic refining,” said Palash Jain, Middle East oil analyst at FGE NexantECA.
“Over the next two to three years, the authorities are expected to target further increases in crude production to a level sufficient to fully meet refinery feedstock requirements.”
However, enhanced security is expected to play a key role in attracting investment and revive the energy sector.
“While the government has successfully attracted interest from players like ConocoPhillips and re-engaged existing operators such as Gulfsands Petroleum, large-scale operational restarts are unlikely until the security situation stabilises further,” said Mrinal Bhardwaj, senior analyst of Rystad Energy,
In November, the Syrian Petroleum Corporate, US based totally ConocoPhillips and Novaterra Power signed a initial settlement to amplify co-operation within the herbal gasoline sector together with building of current gasfields and exploration of latest ones to spice up home manufacturing.
