Iran Considers Forming A Joint Oil And Gas Company With Syria

Iranian and Syrian officials have discussed potential cooperation in the oil and gas sector, Syria's official news agency SANA reports.

Deputy Minister of Oil and Mineral Resources, Khaled al-Alelij, discussed on Wednesday the prospects of mutual cooperation in the fields of oil and gas with Hassan Chaksi, the Executive Director of the Syrian-Iranian People's Friendship Association and Chairman of the Economic Committee, SANA said.

Iran and Syria could cooperate in seismic surveys, oil and gas drilling, petrochemical materials, and oilfield services, according to al-Alelij.

Iranian official Shakesi, for his part, proposed the creation of a joint company in the field of prospecting, exploration, drilling, and petrochemical materials, according to the Syrian news agency.

As reported by Iran's Islamic Republic News Agency (IRNA), "The Syrian oil and gas industry is one of Iran's most significant markets for investment. The synergy of the two states in the oil and gas field can be an important step in the economic cooperation between Damascus and Tehran."

Syria is estimated to hold total reserves of 2.5 Billion barrels of oil and at least 75% of these reserves are in the fields surrounding the oil-rich area of Deir Al Zour.

Last week, U.S. airstrikes were carried out in eastern Syria, in a message to Iran and Iran-backed militias that had targeted U.S. troops earlier this month, the United States said. A few hours after the U.S. strikes, two U.S. military locations in northeastern Syria close to large oil and gas fields were hit with rocket fire, the Associated Press reported.

Iran, for its part, is in indirect talks with the United States over the possibility of reviving the 2015 nuclear deal. In case of an agreement, the U.S. would eventually lift the sanctions on the Iranian oil industry and exports that were re-imposed in 2018 by former U.S. President Donald Trump when he pulled America out of the deal.

On Wednesday, Iran's Foreign Minister Hossein Amirabdollahian said the Islamic Republic wants stronger guarantees from the United States "to have a sustainable deal."

By Tsvetana Paraskova for Oilprice.com

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