Kurdish authorities in northeast Syria have begun supplying oil to the Damascus government, marking a significant development in the internal oil trade following updates to previous agreements. This supply involves approximately 5,000 barrels daily from specific fields, amidst ongoing negotiations and sanctions impacting trade. The arrangement signals potential shifts in economic control and authority between regions in Syria.
Kurdish-led authorities in northeast Syria have commenced the supply of oil to the central government in Damascus, as confirmed by Syrian oil ministry spokesperson Ahmed Suleiman. This represents the first acknowledgment of internal oil deliveries from the oil-rich regions of Hasakeh and Deir el-Zor to the government formed after the fall of Bashar al-Assad. The arrangement includes an updated deal that alters terms beneficial to previous Assad affiliates.
According to reports, the Kurdish administration will deliver approximately 5,000 barrels of oil per day from the Rmeilan field in Hasakeh and additional fields in Deir el-Zor to a refinery located in Homs. Prior to the civil war, Syria had an oil production capacity of 380,000 barrels per day in 2010, which dramatically declined due to protracted conflict.
The control of Syria’s oil fields changed with the conflict, with the Kurdish-led Syrian Democratic Forces ultimately seizing key fields. Although the U.S. and EU sanctions have complicated oil trade, a recent U.S. sanctions exemption has allowed some energy dealings, and the EU plans to ease certain sanctions.
Meanwhile, Syria is attempting to import oil through local intermediaries due to a lack of interest from major traders for prior import tenders, which faced sanctions and financial uncertainties. The internal oil trade is crucial for negotiations between northeast Syria and Damascus, which seeks to unify control across the nation.
As part of a potential agreement, the Syrian Democratic Forces may need to forfeit control over oil proceeds, with SDF commander Mazloum Abdi indicating openness to transferring oil management to the government, contingent on fair wealth distribution across provinces.
The Kurdish-led authorities in northeast Syria are now supplying oil to Syria’s central government, marking a significant shift in the internal oil trade amid ongoing political negotiations. This move could reshape economic control and oil revenue management as the new authorities strive to unify governance across the country. Continued discussions regarding fair revenue distribution will be crucial to the stability of this new arrangement.
Original Source: www.newarab.com
