The Syrian Ministry of Petroleum and Mineral Resources has signed a 25-year contract with Russian company Soyuzneftegaz for offshore oil drilling, development and production in block no 2 of Syria’s territorial waters, according to Syrian news agency SANA.
The contracts covers oil exploration in the area between Tartous city and Banyas city at a depth of 70 kilometers, covering an overall area of 2,190 square kilometres. The contract will begin with surveys in the area to pinpoint potential drilling sites. This stage is set to cost upwards of $15 million, according to SANA.
The second stage will involve drilling at least one test well and it will cost approximately $75 million, and if the operations are successful, the company will carry out further drilling, development and production operations.
The contract also includes benefits such as training staff at the Syrian General Establishment of Petroleum to create a qualified Syrian workforce. Soyuzneftegaz will be responsible for funding all the stages of the contract, and will begin operations immediately after the contract’s ratification and publication.
Petroleum Minister Sleiman al-Abbas said this contract follows up on the lucrative cooperation between Russian companies and Syrian establishments, noting that implementing the contract in the current circumstances in Syria will constitute a great challenge.
Al-Abbas hoped this contract will encourage companies in friendly countries, particularly Russia, to come and invest in Syria and carry out petroleum projects in it, affirming that all Russian oil and gas companies working in Syria are still operating despite the current conditions.
Al-Abbas said that rebel groups have targeted the oil sector in the country and have vandalised many production sites. The rebel groups have also stolen oil from several sites, refined it primitively then smuggled it out to Turkey.
Russia’s Ambassador to Syria Azamat Kulmuhametov said that this contract is proof of the strong economic relations between Syria and Russia, noting that this contract has special importance as it comes at a time when Syria is facing arbitrary sanctions imposed by western countries and a number of other countries.
