Saudi, US Firms to Partner on Northeast Syria Energy Project

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Saudi, US firms to explore oil and gas in northeast Syria
Project follows Assad’s ousting, lifting of US sanctions
Consortium includes Baker Hughes, Hunt Energy, ACWA Power, TAQA, Argent LNG

RIYADH, Feb 10 (Reuters) – Two Saudi Arabian and three 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.

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Baker Hughes (BKR.O), Hunt Energy and Argent LNG are planning to partner with Saudi’s ACWA Power (2082.SE) and TAQA for the project, which would cover approximately four to five exploration blocs in the northeastern region, the sources said.

It 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.

A spokesperson for Hunt declined to comment. Baker Hughes, ACWA Power 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.

Representatives of most of the companies held meetings in Syria with the Syrian Petroleum Company earlier this month, the sources said. SPC head Youssef Qeblawi did not respond to a request for comment.

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.

Reporting by Timour Azhari in Riyadh; additional reporting by Yousef Saba in Dubai; editing by Kirsten Donovan