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Turkey Eyes Role in Reviving Syria’s Oil and Gas Development

(Bloomberg) -- Turkey said it wants to help increase oil and natural gas production in Syria, the latest step in Ankara’s overtures for deeper involvement in the reconstruction of the war-torn country. 

Turkish authorities are also working on ways to meet Syria’s electricity needs after more than a decade of conflict damaged the country’s infrastructure, Turkish Energy Minister Alparslan Bayraktar said on Wednesday.

“We are also studying the use of crude oil and natural gas for reconstruction of Syria. We plan to tell our counterparts how we can make contributions in that sense,” Bayraktar said. “Our objective is to develop these projects.”

His comments highlight Turkey’s desire to play a role in rebuilding of Syria after Hayat Tahrir al-Sham led an advance on capital Damascus, toppling President Bashar al-Assad and bringing to an end the civil war that began in 2011. Syria was a minnow producer of hydrocarbons even before the conflict shut down most of the oil and gas production there, and further political hurdles remain before its new rulers can revive its industries.

The Islamist group that seized power earlier this month, known as HTS, is designated a terror group by many countries. Group of Seven leaders have said they would support a new Syrian government, while Turkey signaled it could soon remove HTS from its list of terrorist organizations.

President Recep Tayyip Erdogan is trying to maintain friendly ties with groups leading Syria’s interim government, an outreach that could see Turkish companies play a leading role in reconstruction and allow some of the 3 million Syrian refugees hosted by Turkey to return home.

Long-term cooperation could see new oil and gas pipelines linking Syria to Turkey’s export terminals, Bayraktar said. The current level of oil output in Syria is estimated to be just around 30,000 barrels per day, about 5% of the levels seen around two decades ago, according to Turkish estimates. 

Below are the highlights of Bayraktar’s comments to reporters in Istanbul, which were embargoed for publication on Friday:

  • Turkey is planning to reach a final decision on contractors to build the country’s second and third nuclear power plants on its Black Sea coast and in the Thrace region.
  • The minister is set to hold talks with an Iraqi delegation this week on the possible resumption of oil flow on the Iraq-Ceyhan pipeline.
  • Turkey sees gold production begin in 2025 at one of the three sites where it’s exploring for the precious metal in Niger. Bayraktar said Turkey was awarded three other exploration sites in the African country.
  • Turkey is in talks with France for possible offshore wind power projects, the minister said.
  • Turkey doesn’t plan a domestic price hike for power in January.

©2024 Bloomberg L.P.