Saudi and US companies to link up for Syria energy project

• Oil and gas exploration in northeast Syria
• Project follows lifting of US sanctions
• Includes Taqa Saudi Arabia and Argent

Saudi and US-based companies are to form a consortium for oil and gas exploration and energy production in northeastern Syria, according to two people with direct knowledge of the plan.

Baker Hughes, Hunt Energy and Argent LNG plan to link up with Taqa Saudi Arabia for the project, which would cover four to five exploration blocks in the northeastern region, the sources said.

The project would be the latest in a series of big business deals in Syria since Bashar Al Assad was ousted a year ago and the most restrictive US sanctions were lifted in December.

After 14 years of war, Syria’s energy infrastructure is severely damaged and requires billions of dollars of investment, which the government is seeking to secure from abroad.

Argent LNG CEO Jonathan Bass said the companies expected to sign a memorandum of understanding for the project in the coming weeks.

“We’re very excited to be realising the visions of US President Donald Trump and Syrian President Ahmed Al Sharaa, bringing the country forward from darkness to light,” Bass said.

Syrian Petroleum Company head Youssef Qeblawi did not respond to a request for comment.

A spokesperson for Hunt declined to comment. Baker Hughes and Taqa Saudi Arabia did not respond to emailed requests for comment.

Further reading:

• Saudi Arabia to announce major new Syria investments
• Saudi companies to back Syria’s oil exploration drive
• Opinion: Syria’s oil provinces are central to economic rebirth

The three US businesses had signed an MOU to develop a masterplan for the country’s energy sector in July.

Reuters had earlier reported that Saudi Arabia’s Acwa would be part of the project.

Although a representative of Acwa attended a meeting earlier in February at which the project was discussed, it is not planning to be part of the project itself, according to a person familiar with the matter.

“Our recently announced joint development agreement in Syria relates exclusively to water desalination and water transmission studies and does not involve oil or gas exploration or production in any form,” Acwa said in a statement.

Until recently, the eastern Syrian region where much of the country’s oil is produced was held by the Kurdish-led Syrian Democratic Forces, who have now agreed to integrate into the state.

Bass, an early proponent of the lifting of US sanctions, said the aim was to bring Syrians together by justly sharing the country’s resources.

“This new development under one Syrian flag unites the east and west, weaving the country together through economic benefits,” he said.

Saudi Arabia, a key backer of Sharaa’s government, announced multibillion-dollar investments in Syrian transport, infrastructure and telecoms over the weekend.

Last week US energy giant Chevron and Qatar’s UCC Holding signed an initial agreement for Syrian offshore gas exploration. UCC also plans to produce 5,000 megawatts of power in the country.