UK lifts Syria oil sanctions as business thaw accelerates

The UK said March 6 it was lifting sanctions on Syrian oil companies previously associated with the leadership of ousted president Bashar al-Assad, part of an international effort to free up fuel and energy supply to the country adjusting to a dramatically changed political reality.

Among the companies affected by the lifted sanctions are several upstream, logistics and refining groups, including state-owned General Petroleum Corp. and subsidiaries such as the Banias and Homs refineries, as well as entities such as banks.

The 120,000 b/d Banias refinery said in early February that it was in "full operational readiness" after a period of maintenance prompted by the cutting of Iranian crude supplies to Syria's two refineries in mid-December. Iran was one of Assad's major international backers. The management of Banias earlier indicated a goal of restoring throughput to 70% of capacity.

Before the onset of civil war in 2011, Syria was producing 380,000-400,000 b/d of crude, facilitating some exports, and also produced 316 MMcf/d of natural gas, according to the US Energy Information Administration. New President Ahmed al-Sharaa has been seeking to build confidence in his leadership; however, reviving investment is likely to involve significant financial, legal and political hurdles, according to industry sources. Due to damage and neglect, Syrian crude production is currently estimated to be between 80,000 and 100,000 b/d.

The EU and US have also been easing the extensive sanctions regime imposed on Syria. The Syrian Ministry of Petroleum & Minerals Resources has issued tenders to buy crude and other products, although it is thought to be early days in overcoming supply problems.

Neighboring Turkey, as well as Qatar, are among countries reported to be trying to ease Syria's energy woes by dispatching seaborne power stations to hook up to the Mediterranean country's badly damaged grid, according to press reports.

The relevant UK sanctions regulations targeted entities and persons "involved in repressing the civilian population in Syria, or who are or have been involved in supporting or benefitting from the Syrian regime."