Syrian Oil Industry Collapsed in War
Syria used to produce 390,000 barrels of oil per day but production declined sharply during the civil war reaching only 40,000 barrels per day in the year 2023 . Prior to the outbreak of the civil war in Syria in 2010 , oil or “black gold” which comprised almost 20% of Syria’s GDP (50 % of exports and state revenues ) and was exporting 380,000 barrels of oil per day (bpd) . Oil giant Shell previously operated Syria’s largest oil field with Syrian state run entities and France’s Total ran the second-largest production facility . However, both companies suspended operations in 2011 when European sanctions were introduced .
Islamists & Renewed Oil Trade
Syria this year has exported crude oil for the first time in 14 years through the Syrian port of Tartus. The crude oil shipment comes from oil fields in the country and production increased after the removal of President Bashar al-Assad in 2011 by an Islamist led government . Initially after the transition U.S. and European sanctions blocked energy trade and recently the US government issued an executive order lifting American sanctions. Following this , Syria signed a USD $ 800 million MOU with Dubai Port World to develop, manage and operate a new multi-purpose terminal at Tartus canceling its previous contract with Russian company OAO Stroytransgaz, which had been operating the port since 2019.
Syria has also re-exported non-crude petroleum products from its Banias refinery in Tartus province, with an initial shipment of 30,000 metric tonnes being transported to international markets. Baniyas, located about 35 km north of Tartus, is a small but strategic coastal city that is home to Syria’s largest oil refinery and an oil port specialised in exporting and importing crude.
Credit;Reuters
Russian Flotilla at Syrian Ports
In the past the Russian Navy used the Tartus port as a supply and maintenance base for its Mediterranean Flotilla , for stationing of its Kilo-class submarine RFS Novorossiksk (B261). Syria has ended its Tartus port contract with Russia, allocating management of the facility to Damascus. The new Islamist government, which assumed power following the downfall of former Syrian President Bashar-al-Assad’s regime, terminated a 49-year investment contract with the Russian construction company Stroytransgaz for which $500 million had been allocated , apparently for the port’s modernisation.
Credit;Newsweek
If peace prevails then trade prospers and sustainable development takes place . Conflicts lead to economic devastation .
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https://www.dailysabah.com/business/energy/syria-makes-1st-oil-shipment-since-2011
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