Saudi and US firms partner on northeast Syria Energy Project

Two people with direct knowledge of the plan say that Saudi Arabian and U.S. firms will form a consortium to explore and produce oil and gas in the northeastern part of Syria.

Sources said that Baker Hughes, Hunt Energy, and Argent LNG plan to partner with TAQA on the project. The project would cover four to five exploration blocks in the northeastern area.

The project is the latest in an array of large-scale business deals that have spanned Syria's entire economy, since the former autocrat Bashar Al-Assad was overthrown by Islamist rebels who became the new rulers a year earlier and after the most stringent U.S. Sanctions were lifted in December.

Syria's infrastructure for energy is badly damaged after 14 years of conflict. The government wants to invest billions of dollars abroad.

Jonathan Bass, CEO of Argent LNG, confirmed that both companies expect to sign a Memorandum?of Understanding for the project within the next few weeks.

Bass stated that they were "very excited" to realize the visions of U.S. president Donald Trump and Syrian president Ahmed al-Sharaa to bring the country from darkness into light.

Youssef Qeblawi, the head of Syrian Petroleum Company, did not reply to a question for comment.

Hunt's spokesperson declined to comment. Baker Hughes and TAQA didn't respond to emailed comments. In July, the three U.S. firms signed an MOU to work with the Syrian government on a masterplan of the energy sector.

Reports had stated that Saudi Arabia's ACWA was to be involved in the project.

A person familiar with this matter said that while a representative from ACWA was present at a February meeting in which representatives of other companies, including the head of Syrian Petroleum Company, discussed the project, the company does not plan to participate.

ACWA said in a press release that "our recently announced Joint Development Agreement in Syria" relates exclusively to studies on water desalination and water transmission, but does not include oil or gas exploration.

"ONE SYRIAN FLAG" Until recently the eastern Syrian region, where most of the oil in the country is produced, was controlled by the Kurdish led Syrian Democratic Forces. They have now agreed to integrate into the state, after being pushed by government forces back last month.

Bass, a proponent of lifting U.S. sanctions on Syria who was an early supporter, stated that the goal was to bring Syrians closer together by equitably sharing the resources of the country.

He said that "this new development under one Syrian flag unites east and west by weaving the 'country together with economic benefits." Saudi Arabia, which is a key supporter of Sharaa’s government, announced over the weekend multi-billion dollar investments in Syrian infrastructure, transport and telecoms. Last week, U.S. energy giant Chevron, along with Qatari firm UCC Holding, signed an initial Syrian off shore gas exploration agreement.

(source: Reuters)