Saudi Arabia to Supply Oil to Syria for Reconstruction
Saudi Arabia’s state media announced on Thursday that the government will send 1.65 million barrels of crude oil to Syria as part of efforts to assist the country in its postwar recovery.
The announcement from the Saudi Press Agency (SPA) indicated that these oil supplies were authorized by King Salman bin Abdulaziz al-Saud and Crown Prince Mohammed bin Salman.
The distribution of the petroleum will be managed by the Saudi Development Fund (SDF), which supports infrastructure projects in developing nations. SDF’s CEO, Sultan Al-Marshad, signed a grant memorandum with Syrian Energy Minister Mohammad Albashir on Thursday.
The state media noted that this grant aims to enhance the operations of Syrian refineries, striving for financial sustainability and addressing economic challenges while promoting growth in vital sectors. It is also intended to help meet Sustainable Development Goals.
Syria’s current government operates under a military junta led by a faction formerly associated with al-Qaeda, known as Hayat Tahrir al-Sham (HTS). The dynamics shifted after a military offensive in December 2024, which saw the end of a decades-long dictatorship by Bashar Assad, concluding a brutal 14-year civil war.
Saudi Arabia, along with various Western leaders, has expressed cautious optimism about the reformed HTS and its leadership, including interim president Ahmed Al-Sharara. Notably, former President Trump had shown support for Sharaa in the hopes of easing U.S. sanctions against Syria, as he suggests a more inclusive government may emerge.
The energy landscape in Syria is dire, reflecting the devastation caused by the civil war. The country’s capability to generate electricity has plummeted by about 80%, with damages estimated to require at least $40 billion to fix.
Energy Minister Mohammad Albashir, who facilitated the oil grant with Saudi Arabia, is also acting as the caretaker Prime Minister. He is tasked with overseeing a newly established institution combining multiple ministries related to energy and resources. His efforts include securing Saudi support for revitalizing Syria’s energy sector.
Recently, Syria resumed oil exports for the first time in 14 years, shipping 600,000 barrels from the Port of Tartus. The Baniya refinery near Tartus plays a crucial role in the country’s plans to kickstart profitable oil exports.
Currently, Syria consumes approximately 138,000 barrels of crude oil daily, meaning Saudi Arabia’s donation could cover the country’s needs for about 12 days. This support is vital in accelerating the operation of Syrian refineries.
In a collaborative move alongside Qatar, Saudi Arabia cleared $15.5 million of Syria’s debt to the World Bank in March, facilitating a $146 million grant aimed at restoring the Syrian power grid. So far, Saudi Arabia has pledged more than $6.4 billion for reconstruction projects in Syria.
This week, the King Salman Humanitarian and Relief Centre announced a new initiative focused on cleaning up rubble in Damascus, repairing infrastructure, and rebuilding schools in cities like Aleppo, Idlib, and Homs.
