While the United States has imposed sanctions targeting Iran's oil revenue stream, its Middle-Eastern neighbour, Syria, has re-entered the international oil trade from its port of Tartus after a 14-year hiatus.
Syria’s decision to export 600,000 barrels of heavy crude oil from the western port of Tartus - an emerging export hub for Syrian oil shipments - follows recent oil production hikes by Saudi Arabia and other OPEC+ states.
The crude is understood to have been shipped aboard via the tanker Nissos Christiana on behalf of the company “B Serve Energy”, which is linked to the global oil trading firm BB Energy.
In addition to weakening oil prices, there’s mounting speculation that production increases will further widen the previously projected surplus on the global oil market of 2.6 million barrels per day in the fourth quarter, easing to 2.2 million bpd in 2026.
The 14 years of civil war and proxy wars in Syria have halted official oil exports and devastated vital infrastructure.
Rebuild the Syrian economy
While Syria produced nearly 380,000 barrels per day prior to conflict that began in 2011, by 2023, output dropped to a trickle at around 40,000 barrels per day.
Syria’s Energy Ministry said the recent oil shipment out of Tartus is part of plans to strengthen Syria’s presence in foreign oil markets, with more exports scheduled from the port in the coming months.
Having previously accounted for half of its exports, over 50% of government revenue and roughly one-fifth of Syria’s gross domestic product, Syria sees the resumption of oil exports as critical to restoring economic stability.
After the U.S. administration lifted sanctions on Syria in June, international firms have started developing plans for exploring and extracting Syrian oil and gas.
Stabilising Syria’s energy sector
U.S.-based firms Baker Hughes, Hunt Energy, and Argent LNG are also developing a master plan for Syria’s oil, gas, and electricity sector.
While no official confirmation has been issued, a joint venture, SyriUS Energy has been created between Syrian authorities and U.S. energy firms to rebuild Syria’s oil and gas sector and infrastructure.
According to an executive summary shared with U.S. President Donald Trump and Syrian interim President Ahmed al-Sharaa, the project aims to restore and stabilise Syria’s energy sector, which it identifies as a key pillar for national recovery and economic sovereignty.
MoU with DP World
Meanwhile, the Syrian government’s decision to export oil from Tartus follows a recently signed $800 million agreement (MoU) with Dubai-based DP World to develop and operate a multi-purpose terminal at Tartus.
The deal replaces an earlier agreement with a Russian operator that was cancelled after the former Syrian president [and former eye-surgeon] Bashar al-Assad was toppled in December 2024.
In an attempt to highlight investment opportunities and ongoing efforts to develop the sector and boost its role in supporting the national economy, Syria’s 62nd Damascus International Fair, the Ministry of Energy showcased models and maps of Syria’s oil and gas blocks, along with samples of mineral and non-mineral resources.
Exports from Baniyas refinery
Syria’s decision to export oil from Tartus follows the resumption of limited petroleum exports earlier this year from the Baniyas refinery.
Located north of Tartus, it’s understood that the Baniyas refinery has already sent an initial 30,000 metric tons of refined products abroad.
According to the latest available study by the Oil and Gas Journal in 2010, Syria held an estimated 2.5 billion barrels of petroleum reserves.
Most Syrian oil fields lie in the northeast in territory held by Kurdish-led authorities that began providing oil to the central government in Damascus in February.
However, ties have deteriorated since then over fears about inclusivity and rights for minorities, including Kurds.
Despite plans for long-term economic recovery via oil exports, recent sectarian massacres and internal strife have created an overhang for the Syrian government's efforts to ensure stability.
Syria applies to join BRICS
Interestingly, Syria’s plans to attract foreign investment are a 180-degree turn from 2017 when the then Russian Deputy Prime Minister Dmitry Rogozin made it clear his country would be the only one to rebuild Syria’s energy industry.
But while relations between Syria and Russia are not what they once were, late last year Syria officially applied to follow neighbouring Iran into the BRICS bloc of emerging economies dominated by Russia, China and India.
However, it should be remembered that Syria’s application to join BRICS last October re-dates the ousting of Bashar al-Assad two months later.
