US energy companies ConocoPhillips and Novaterra Energy signed preliminary agreements to explore for gas with the Syrian Petroleum Company as Damascus steps up efforts to secure foreign investment in its energy sector.

The two companies intend to “develop several gasfields and launch exploration programmes for new fields”, the Syrian Ministry of Energy said, according to state news agency Sana.

The ministry did not mention which gasfields would be developed and when the exploration programmes would be launched.

“The development and exploration programmes will be conducted according to the latest technical and technological standards to support the country’s energy security,” the ministry said.

The agreements with oil major ConocoPhillips and Michigan-based Novaterra follow Syrian President Ahmad Al Shara’s visit to the White House on November 10 and the extension of sanctions’ relief to Damascus for another six months.

Agreements come after Syrian President Ahmad Al Shara’s visit to the White House last week

Syria, once the major gas producer in the Eastern Mediterranean, has seen its ability to produce dwindle due to its 13-year civil war.

Once self-sufficient in gas, Syria now relies on imports of electricity from its neighbours.

Gulf states have pledged to rehabilitate Syria’s war-torn electricity infrastructure.

Damascus receives gas from the Arab Gas Pipeline through Jordan from Qatar that is enough to provide 400 megawatts of electricity.

Turkey has also begun supplying 3.4 million cubic metres of gas to Syria in a trilateral agreement with Azerbaijan.

Following Mr Al Shara’s visit and the lifting of sanctions on his country, Syria has received significant interest from regional and international energy and logistics companies.

On November 12, UAE-based Dana Gas, which also operates gas blocks in Iraqi Kurdistan, signed an initial agreement with SPC to explore redevelopment and expansion of natural gasfields in central Syria.

On Tuesday, a Saudi tanker carrying 90,000 tonnes of crude oil arrived at Syria’s Baniyas port. It was the first shipment after the announcement of a grant aimed at providing fuel for Syrian refineries.

The state-run Saudi Fund for Development provided a grant in September to supply Syria with 1.65 million barrels of crude oil.

The UAE’s DP World began operations at Syria’s Tartus port on November 13 following the signing of a 30-year development and operational agreement last summer, which included an $800 million commitment to upgrade infrastructure.

Source: The National News – Jennifer Gnana