Establishing an energy company in Syria in cooperation with Saudi Aramco
The Syrian Ministry of Energy is working to form a joint committee with Saudi Aramco to establish an energy company owned by the Syrian sovereign wealth fund.
Riad al-Jubasi, assistant director of the General Administration of Energy at the Syrian Ministry of Energy, confirmed to Al-Eqtisadiah that the committee will include technical and administrative experts from Aramco to establish the holding company based on the Saudi Aramco structure, with some modifications to suit the local specificities of Syria’s oil fields. Aramco declined to comment on the matter.
Al-Jubasi said the initiative aims to reduce bureaucracy and increase the efficiency of energy sector management. It is part of the Syrian government’s efforts to reorganize the sector after years of operational and financial challenges. He explained that the Syrian Minister of Energy visited Aramco’s headquarters to learn about its experience, and a Syrian technical team is scheduled to visit the company’s headquarters in Dhahran to discuss details of the cooperation.
The move is considered strategic for Syria, as it will leverage the expertise of Aramco, the world’s largest oil company by market value, in introducing advanced operational and management technologies.
Al-Jubasi emphasized that any direct investment by Aramco in Syria, whether in oil fields, refineries, or the retail sector, will remain postponed until after the official announcement of the holding company. The current phase is focused on institutional preparation and building a governance model.
$120 million in Saudi oil grant revenue to Syria
This month, the Saudi government directed a grant to supply Syria with 1.65 million barrels of crude oil. The grant aims to boost Syrian refinery operations and achieve operational and financial sustainability. This will support economic development, address the economic challenges facing Syria, foster the growth of vital sectors, and support national and international efforts to achieve sustainable development goals.
The Saudi grant of 1.65 million barrels of crude oil to Syria has provided operational and financial revenues estimated at approximately $120 million, according to what the Syrian Ministry of Energy previously told Al-Eqtisadiah.
The grant will enhance the ability of the Baniyas Refinery—one of Syria’s most important light crude oil refineries—to continue production and ensure stable supplies of petroleum products to the local market. It will also enable the refinery to achieve greater operational sustainability and support the stability of petroleum products in Syria.
Riyadh signed an agreement to encourage and protect mutual investments with Damascus during a joint roundtable meeting held in the Saudi capital on August 18.
The conference witnessed the signing of 47 agreements between the two countries, a number of which entered into immediate effect. These agreements were a continuation of the outcomes of the Saudi-Syrian Investment Forum, held last July under the patronage of Syrian President Ahmed al-Shara’a, with the participation of more than 100 companies and 20 Saudi government agencies. The signed agreements included 47 investment projects, with total investments exceeding 24 billion riyals
