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Saudi, US firms to partner on northeast Syria energy project

RIYADH - Saudi Arabian and U.S.-based firms are set 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 are planning to partner with ​TAQA for ​the project, which would cover approximately four to five exploration blocs in the northeastern region, the sources said.

The project would be the latest in a series of big business deals spanning Syria's economy since former autocrat ⁠Bashar al-Assad was ousted by Islamist rebels-turned-rulers a year ago, and after the most stringent U.S. 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 confirmed that 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 U.S. President Donald Trump and Syrian President Ahmed al-Sharaa, bringing the country forward from darkness to light," Bass ​said.

Reuters had earlier reported that Saudi's ACWA would be a part of the project.

While a ‌representative of ACWA attended a meeting with representatives of other companies and ⁠the head of the Syrian Petroleum Company earlier in February at which the project was discussed, they are not planning to be part of the project itself, according to a person familiar with the matter.

SPC head Youssef Qeblawi did not respond to a request for comment.

A spokesperson for Hunt declined to comment. Baker Hughes and TAQA did not respond to emailed requests for comment. The three U.S.-based firms had signed an MOU with the Syrian state to develop a masterplan for the country's energy sector in July.

'ONE SYRIAN FLAG'

Until recently, the eastern Syrian region where much of the country's oil is traditionally produced, was held by the Kurdish-led Syrian Democratic Forces, who have now agreed to integrate ‌into the state after being pushed back by government forces last month.

Bass, an ⁠early proponent of the U.S. lifting sanctions on Syria, 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, and last week U.S. energy giant Chevron signed an initial Syrian offshore gas exploration ⁠agreement, partnering with Qatari firm UCC Holding.