Lowering above Banias, the black basalt Crusader Castle of Marqab [DD]
On Christmas Day 25 December 2013 a contract was signed in Damascus giving Russia the 25-year rights to explore, drill, produce and develop a massive offshore Syrian oil and gas field in the Eastern Mediterranean between the coastal cities of Banias and Tartous. The signatories were Syria’s state-owned General Petroleum Company, Syria’s Oil Minister Suleyman Al-Abbas, and the Russian state-controlled oil company Soyuzneftegaz, represented by the Russian ambassador. The estimated costs of the deal are US$90 million, to be borne solely by Soyuzneftegaz, which is controlled by the Russian Central Bank and run by a former Russian Oil Minister. This offshore deal, covering an area known as Block No. 2 , a full 2,190 square kilometres, is the first ever to be awarded from Syria’s offshore oil and gas reserves, which are estimated to be considerable – bigger potentially than those of Lebanon, Cyprus or Israel.
So a historic moment, and a fine Christmas present for Russia, a reward from the Assad regime for Russian loyalty. Historic for its timing, just weeks before the scheduled 22 January 2014 Geneva 2 talks aimed at solving the Syrian crisis, and historic for its sealing of Russia’s stake in Syria’s future. Syria’s Oil Minister announced that Russia would begin work immediately on implementing the deal. After all, there is not a moment to lose. Russia wants to make very sure it, and it alone, can exploit Syria’s offshore oil and gas reserves.
Then, this morning, comes the news that Russia has blocked a UN statement, sponsored by the UK, on the Assad regime’s recent air attacks on civilians in Aleppo. Russia does not want its ally condemned: it wants it protected.
There is a huge amount at stake here – potentially billions and billions of dollars. Syria’s oil production has dropped by 90% since the March 2011 revolution began, and most of its oilfields are in the eastern desert regions around Deir ez-Zour, now controlled by opposition forces. Syria’s refineries are already in the western Banias and Homs region, much more convenient for offshore rigs. The deal also includes training for Syrian staff at the state-owned Syrian General Establishment for Petroleum.
Russia knows well how to tighten its grip, and Bashar knows well how to maximise his country’s assets. They are a perfect match.