Shafaq News– Damascus

Rehabilitating oil and gas infrastructure is the backbone of Syria’s plans to revive its economy, boost state revenues, and improve living conditions, Syrian senior officials told Shafaq News.

Osama al-Qadi, an adviser at the Ministry of Economy and Industry, noted that oil and gas pipelines in the coastal city of Baniyas require comprehensive rehabilitation to raise pumping capacity to around 100,000 barrels per day (bpd), a level he described as critical for supporting economic growth.

Al-Qadi also pointed to renewed momentum around the Arab Gas Pipeline, explaining that improved relations with Egypt have strengthened gas flows through Egypt to Jordan, Syria, and Lebanon. He said Syria is expected to receive about 60 billion cubic meters of gas, which would help support industrial activity and ease chronic energy shortages.

At the field level, al-Qadi said international energy companies have begun engaging in Syria’s upstream sector, citing the involvement of Chevron and ConocoPhillips at the Conoco field in Hasakah province. These efforts, in his view, could increase gas and oil output while enabling the rehabilitation of wells damaged during years of conflict.

Beyond production, al-Qadi described Syria’s geography as a strategic asset, noting that parts of the country are gradually shifting from conflict zones into energy transit corridors linking the Mediterranean to Turkiye. “Reinforcing rail networks alongside energy supply lines would be essential to translating this position into long-term economic gains.”

Syrian researcher Ziad Arabsh stressed that restoring the Al-Thawra Oil Complex and the fields of Deir Ez-Zor is vital for rebuilding “economic sovereignty.” These fields previously produced about 130,000 bpd and account for nearly 70% of Syria’s estimated oil reserves of around 2.5 billion barrels.

Arabsh confirmed that reviving production would help finance national recovery, reduce reliance on imports, and stabilize energy supplies. However, he cautioned that scaling up output faces structural constraints, including aging infrastructure, the need for well rehabilitation, and shortages in technology and logistics caused by the war, requiring “a focused plan” to raise efficiency.

Improved electricity and fuel availability, he added, would directly support industry and transport, easing daily living costs and strengthening national income. Arabsh linked this impact to Syria’s wider economic imbalance, noting that the trade balance has declined by about 98% compared with 2011, stressing that restoring production in Raqqa and Deir ez-Zor could contribute to exchange-rate stability while revitalizing agricultural and industrial sectors.

These efforts coincide with what observers describe as a "historic moment" following an announcement by US President Donald Trump on lifting long-standing economic sanctions on Damascus. A senior Syrian government official previously told Shafaq News that American investment has since begun reaching Damascus, particularly in the energy sector, noting that Washington “has taken concrete steps in oil and gas” through cooperation with major US firms.

Read more: Beyond Sanctions: New chapter for Syria, new opportunities for Iraq

Baghdad and Damascus, in parallel, reached a preliminary agreement in 2025 to revive the Kirkuk–Baniyas oil pipeline, built in 1952, with operations expected to resume once agreed strategic frameworks are completed. Between 2003 and 2010, Iraq supplied Syria with crude through the pipeline, with flows peaking at around 70,000 barrels per day before stopping amid regional instability and infrastructure damage.