Syria signss deal with ConocoPhillips and Novaterra to revive its gas production

According to a 'joint announcement, the Syrian Petroleum Company (SPC), U.S. based ConocoPhillips, and energy company Novaterra signed a 'deal' in Damascus, Tuesday, to develop new gas fields and increase production at existing ones. Syria's energy industry was ravaged by its 14-year civil war and produces just a fraction the amount of electricity needed. The domestic natural gas production will be down to 3 billion cubic meters in 2023, from 8.7 billion cubic metres in 2011. In November, the three companies signed an agreement to increase?cooperation within the gas sector.

Mohamed al-Bashir, the Syrian Energy Minister, said that the agreement aims to?improve the stability of Syria’s electricity network and help the country’s economic recovery. He didn't specify which fields were involved. ConocoPhillips Chairman and CEO Ryan Lance said, "We have been in Syria for many decades, and this is the re-entry into Syria of our company in partnership with NovaTerra."

Lance stated that "we hope to increase the gas production in Syria, and I also hope that this will expand beyond that into something more significant both for our company as well as for Syria." ConocoPhillips was active in Syria for about two decades. It signed a contract in May with French oil giant TotalEnergies, QatarEnergy, and the Syrian Petroleum Company for a technical'review' of the offshore Block 3 near the Syrian coastal city of Latakia.

Novaterra Energy CEO Alex Macdonald told reporters in Damascus that the company will provide "training and access to cutting edge software and technology" in order to expand its operations in Syria.

Later, Syrian President Ahmed Al-Sharaa hosted Lance Macdonald, Macdonald, and Syrian businessman Ayman Afari at the presidential palace. Ayman is listed on Novaterra's website as a director.

Youssef qabalawi, CEO of the Syrian Petroleum Company said last year that the agreement would increase gas production by 4 to 5 millions cubic metres per day in a year.

(source: Reuters)