Syria Marks Major Economic Milestone as First Crude Oil Shipment from Deir ez-Zor Reaches Baniyas Terminal

 


The Syrian government achieved a significant economic breakthrough on Sunday, January 25, 2026, with the arrival of the first shipment of crude oil from the recaptured oil fields in Deir ez-Zor province to the Syrian Petroleum Company's terminal in the coastal city of Baniyas. This development follows the recent reassertion of state control over key eastern hydrocarbon assets previously held by the Kurdish-led Syrian Democratic Forces (SDF), and it signals the beginning of efforts to revive the country's long-devastated oil sector after more than a decade of conflict and fragmentation.

According to an official statement posted by the Tartus Governorate on its Telegram channel, the shipment originated from the al-Omar and al-Tank (also spelled al-Tanak) fields in Deir ez-Zor province. These fields, among Syria's most productive, were "liberated from the terror group YPG/SDF" — a reference to the Kurdish-dominated forces — and returned to operational status under central government authority. The convoy consisted of 20 oil tankers that transported the crude by land to the Baniyas refinery, where it was unloaded into designated storage tanks under the supervision of specialized technical personnel from the Syrian Petroleum Company (SPC).

The governorate described the delivery as "the first of its kind since the state regained control over the oil fields in the eastern region," emphasizing its importance as "an important step toward rehabilitating infrastructure and boosting domestic oil production." The al-Omar field, Syria's largest, along with nearby facilities like al-Tank, had been under SDF control for years, contributing to the government's near-total loss of domestic crude supply during the civil war. The recent SDF withdrawal from these areas, following negotiations and a temporary ceasefire, enabled Syrian forces to secure the sites and initiate extraction and transport operations.

Observers and analysts view this shipment as the most substantial economic turning point for Syria in decades. The country's oil and gas sector has been severely crippled since the outbreak of conflict in 2011, with production plummeting from pre-war levels of around 380,000 barrels per day (bpd) to fractions of that amount due to damage, sanctions, and divided control. Regaining full or near-full access to the eastern fields — concentrated in Deir ez-Zor and parts of Raqqa — could dramatically improve Syria's energy self-sufficiency, reduce reliance on imports, and generate much-needed revenue for reconstruction.

Syria's proven oil reserves stand at approximately 2.5 billion barrels, ranking the country among the top in the Middle East despite under-exploitation. Most of this crude is heavy and high-sulfur, requiring specific refining capabilities available at facilities like Baniyas and Homs. Natural gas reserves are estimated at around 285 billion cubic meters (equivalent to about 8.5 trillion cubic feet in some reports), with current production hovering near 12.5 million cubic meters per day. Pre-conflict, gas powered much of Syria's electricity generation, but disruptions led to widespread blackouts.

Current overall oil production remains low, estimated at about 100,000 bpd or less in recent years, largely from smaller western fields and limited eastern output. Analysts from firms like Wood Mackenzie project a gradual recovery in 2026 as government forces consolidate control, rehabilitate damaged infrastructure, and resume full operations at major sites. Realistic near-term targets could see output rise to 120,000–150,000 bpd with targeted investments, though challenges such as sanctions, equipment shortages, and security concerns persist.

The Baniyas refinery, a key facility on the Mediterranean coast with a capacity of around 120,000 bpd, has historically relied on imported crude due to domestic shortfalls. Recent shipments, including a Saudi grant of 90,000 tons in late 2025, have helped keep it operational. The new domestic feedstock from Deir ez-Zor is expected to alleviate some pressure on imports and support refinery runs for fuels like diesel, gasoline, and mazut.

The SDF's pullback from the al-Omar and al-Tank fields, along with other areas in eastern Deir ez-Zor and Raqqa, stemmed from a combination of military advances by Syrian government forces and diplomatic agreements, including a four-day ceasefire that facilitated the handover. Reports indicate that the SDF relinquished control of these resource-rich zones in mid-January 2026, allowing the Syrian Army and SPC teams to move in swiftly. While some smaller fields may remain contested or under local control, the recapture of the major ones represents a strategic shift that reshapes Syria's energy map.

This milestone arrives amid broader efforts to stabilize and rebuild the war-torn economy. The government has prioritized energy sector revival, with plans to repair pipelines, restore power plants, and attract technical expertise for field rehabilitation. However, experts caution that full recovery will be gradual and face structural barriers: aging infrastructure damaged by years of neglect and fighting, international sanctions limiting access to technology and financing, and the need for substantial investment estimated in billions of dollars.

The arrival of the shipment has been hailed domestically as a symbol of sovereignty and progress. State media and officials underscored the role of the military in securing the fields and the SPC in quickly mobilizing to extract and transport the crude. The operation demonstrates improved coordination between military, provincial authorities, and energy entities, a critical factor for sustaining production gains.

Economically, increased domestic oil supply could ease fuel shortages, lower black-market prices, and free up foreign currency previously spent on imports. For ordinary Syrians enduring hardship, reliable energy access would support heating, transportation, and industry. Regionally, a revitalized Syrian oil sector might influence Mediterranean energy dynamics, though exports remain constrained by sanctions and global market conditions.

As Syria navigates this new phase, the focus shifts to sustaining output, expanding gas production for electricity, and addressing humanitarian needs in the east. The first Deir ez-Zor shipment to Baniyas is more than a logistical achievement; it represents hope for economic recovery and a step toward ending the energy crisis that has plagued the nation for over a decade.

With security improvements in the eastern regions and political efforts to consolidate gains, Syria's hydrocarbon potential — long untapped — could finally begin contributing to national rebuilding. The coming months will test whether this initial success translates into sustained production growth and broader stability.

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