Syria-US Gas Deal Aims to Ease Financial Bottleneck

Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
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Syria-US Gas Deal Aims to Ease Financial Bottleneck

Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo
Syria’s Jihar gas field, one of the country’s major gas fields, in the desert west of Palmyra in Homs province. Syrian Energy Ministry/File Photo

The Syrian Petroleum Company has signed a major implementation contract with US companies ConocoPhillips and Novaterra Energy to develop gas fields and raise production, marking the most significant strategic breakthrough in economic and political ties between Damascus and Washington since the fall of Bashar al-Assad’s government in late 2024.

The agreement is the first major US energy deal in Syria in years. It also offers the clearest sign yet that the country has entered a phase of “integrated implementation” after US President Donald Trump’s decision to lift sanctions in July 2025.

The contract follows earlier US moves, beginning in early 2026, through memoranda of understanding with other companies, including Chevron for offshore exploration and HKN Energy for the onshore Rmeilan fields.

But the ConocoPhillips deal stands out as the largest binding implementation contract to develop Syria’s domestic gas sector, backed by Gulf and European alliances and financing aimed at ending the country’s acute energy crisis.

Energy experts say the deal, based on understandings reached last November, will go beyond the technical oil and gas sector. They see it as an international “vote of confidence” that could help break the financial bottleneck facing Syria’s new government, whose 2026 budget deficit is estimated at about $1.8 billion.

The US return comes as major regional and international players move into Syria’s energy sector through parallel contracts and partnerships with Saudi companies, including ADES, as well as Qatari and French firms. Together, these moves place Syria’s gas sector on the edge of a promising new phase that could drive recovery and reconstruction.

The contract puts earlier understandings into effect. In November 2025, the Syrian Petroleum Company signed a memorandum of understanding with ConocoPhillips and Novaterra Energy. Technical, legal and commercial talks followed, culminating in the latest agreement.

Importance of the contract

Syrian academic and energy expert Ziad Arbash said the deal matters because it turns a memorandum of understanding into an implementation contract. It sends a strong signal to global markets, he said, that Syria has become an attractive destination for oil and gas investment.

He said the agreement would also raise the “level of oil activity” in Syria in tangible ways: more work teams, engineers and technicians in the fields, modern rigs and equipment built to the latest technical standards, and stronger infrastructure and logistics to support company operations.

Arbash told Asharq Al-Awsat that every additional company operating in Syria helps draw in others. That, he said, lowers operating costs through economies of scale and the exchange of expertise, while creating a competitive environment that benefits the national economy.

A vote of confidence

The contract could have a wider ripple effect. For Arbash, the presence of a company the size of ConocoPhillips in the Syrian market is “a vote of confidence for other companies.”

He said it reduces the perceived risks of investing in Syria and demonstrates the Syrian government’s commitment to creating an investment environment that can attract major international firms.

Recent indicators point in the same direction. The Syrian Petroleum Company signed a contract with Saudi Arabia’s ADES to develop gas fields in April, after signing a memorandum of understanding with US company Chevron and a Qatari company in February. Reports have also pointed to alliances between US and Saudi companies to invest in northeastern Syria.

Breaking the financial bottleneck

The new Syrian government inherited a shattered economy from the previous government and is struggling with a budget deficit of about $1.8 billion.

According to figures presented by Finance Minister Yisr Barnieh at an April news conference announcing the 2026 budget, revenues are estimated at about 959 billion Syrian pounds, or around $8.7 billion, against spending of 1,056.7 billion pounds, or about $10.5 billion.

Arbash described the contract as “a pivotal step in overcoming the financial bottleneck” in the state budget through two linked tracks.

The first is easing the import bill. Syria currently depends on imports and regional supplies to improve electricity provision. At its pre-war peak, gas output stood at about 28 million cubic meters per day. It has since fallen to roughly a third of that level.

The government aims to raise production to about 15 million cubic meters per day next year. The contract is expected to add between 4 million and 5 million cubic meters per day within one year of work beginning. According to Arbash, that would sharply reduce the cost of importing oil and petroleum products, while better securing local gas needs for electricity and other vital sectors.

The second track is “exports and revenues.” Once Syria achieves a production surplus, it could move toward exports, generating hard currency that would ease pressure on the state budget and strengthen its ability to finance reconstruction and development projects.

Current estimates suggest the first phase of the project could increase production within one year of work beginning. Arbash urged caution, however, saying: “Let us be realistic and add another year before reaching the increase of 5 million cubic meters per day.”

An important breakthrough in bilateral relations

The contract was signed as relations between Syria’s new authorities and the Trump administration continue to improve after the fall of Bashar al-Assad’s rule in late 2024.

Arbash said the agreement represents an important breakthrough in relations between the two countries. It is the first implementation contract with a major US oil and gas company since Assad’s fall, reflects a shift in US policy toward Syria, and opens a channel for direct economic cooperation that could positively impact other political files.

The signing came as Damascus continues efforts to attract US investment. Syrian Energy Minister Mohamed al-Bashir discussed investment opportunities in the oil and gas sector with US officials last week.

According to Arbash, the deal could pave the way for broader normalization between the two countries, especially as other US companies enter the scene, including Baker Hughes, Hunt Energy and Argent LNG, which are preparing a comprehensive plan to develop Syria’s energy sector.

Current state of gas fields and production

Syria’s gas sector faces a long road back from the deep supply deficit left by 14 years of conflict. A United Nations report estimates direct and indirect losses to the oil and gas sector at more than $115 billion between 2011 and 2023.

Current production data published on the US Embassy in Damascus page shows a total domestic gas supply of only 7-10 million cubic meters per day. That is a steep fall from the pre-war peak of up to 30 million cubic meters per day.

Demand, meanwhile, has risen to between 23 million and 30 million cubic meters per day, driven mainly by the severe shortage in electricity generation. The gap leaves a daily shortfall of up to 15 million cubic meters, placing heavy constraints on power plants.

That is why Damascus has set its sights on a strategic goal for 2030: using the new international partnerships to double gas production before the end of the decade.

Infrastructure

The sector suffered heavy damage during the war, including to fields, facilities and transmission lines. Sanctions also obstructed maintenance for years. Still, Arbash said that developing proven gas reserves estimated at about 285 billion cubic meters could allow current production to return to its pre-war peak of 28 million cubic meters per day within four years.

Syria needs about 23 million cubic meters of water per day to ensure continuous electricity supplies.

For now, the country relies on imports and regional supplies to improve electricity provision. These include a project to supply Azerbaijani gas through Türkiye with Qatari financing, providing about 3.4 million cubic meters per day, or to supply it directly from Qatar through Jordan.

Syria is currently focused on rehabilitating infrastructure at existing fields through contracts with companies such as Saudi Arabia’s ADES. It also aims to double production through strategic partnerships with international companies, as reflected in the contract with ConocoPhillips and Novaterra Energy.

For Arbash, the signing marks “a qualitative shift in Syria’s energy sector” at a critical moment. Syria, he said, is trying to overcome its financial bottleneck, raise the “level of oil activity,” restore international confidence, attract additional Arab and Western investment, and “open a new page in Syrian-US relations through direct economic cooperation.”

“With expectations that the fruits of this contract will begin to appear within a year, and with parallel projects involving Saudi, Qatari and French companies, Syria’s gas sector is entering a promising phase that could become a main driver of economic recovery and a way out of the suffocating financial crisis, provided there is transparency in tendering and implementation,” Arbash said.

Where are the fields?

The agreements quickly had an impact on the ground. The Syrian Petroleum Company recently took over oil and gas fields that had been controlled by the Kurdish-led autonomous administration in the northeast, extending government control over resources concentrated in three main areas.

The eastern region, including Deir Ezzor and Hasakah, includes the Conoco field northeast of Deir Ezzor. ConocoPhillips established the field in 2001 with a capacity of 4.7 billion cubic meters a year. It produced 13 million cubic meters per day before halting operations because of attacks. The region also includes the al-Jabsa field in Hasakah. Together, the two fields accounted for 53% of Syria’s production before 2011.

The central region and the Homs desert include al-Shaer, the country’s largest field, with a production capacity of 35 million cubic meters per year in 2010. The area also includes the al-Jihar field west of Palmyra, as well as the al-Mahr and al-Jazal fields.

Arbash concluded that, based on these combined indicators, Syria’s gas sector is entering a promising phase capable of leading economic recovery and easing the suffocating financial crisis, provided the highest standards of “transparency in tendering and implementation” are upheld.

 



Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
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Saudi Arabia Offers 100% Social Insurance Debt Waiver to Businesses That Have Exited Market

Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)
Officials from the General Organization for Social Insurance at an earlier meeting with businessmen and businesswomen at the Riyadh Chamber (SPA)

Saudi Arabia's General Organization for Social Insurance (GOSI) has made businesses that have ceased operations and exited the Saudi market eligible for a 100% waiver of outstanding social insurance debts, subject to approved conditions, Asharq Al-Awsat has learned.

The move aims to address accumulated financial obligations, help businesses settle their accounts and close outstanding cases, and support stability in the Kingdom's private sector while resolving financial difficulties faced by companies that have left the market.

The measure is part of a broader package of improvements GOSI is implementing to enhance services for employers and businesses, in response to feedback and suggestions gathered during direct meetings with officials and business owners, in cooperation with chambers of commerce.

Taking Economic Conditions into Account

The initiative has economic and regulatory implications beyond debt relief, seeking to address financial and administrative liabilities left behind by businesses that have exited the market and facilitate the formal closure of their records in accordance with regulations.

Its main significance lies in striking a balance between protecting the rights of the social insurance system and its contributors, on the one hand, and taking into account the economic circumstances of businesses that have ceased operations, on the other.

It also reinforces regulatory flexibility in the business environment, ensuring that accumulated obligations do not become a permanent obstacle to the settlement of financial and administrative affairs.

Enhancing Market Attractiveness

The initiative reflects a more flexible approach to dealing with business distress, focusing on resolving outstanding liabilities rather than allowing them to remain a continuing burden on business owners.

This approach is expected to strengthen confidence in regulatory procedures and enhance the attractiveness of Saudi Arabia's business environment.

The move is particularly significant given the changing nature of the business sector, with new companies entering the market each year while others cease operations because of competition, rising costs, or shifting market conditions.

Settling the social insurance accounts of businesses that have exited the market could ease the administrative and financial burden on their owners, help them reorganize their financial affairs and potentially pave the way for a return to commercial activity in the future, without old liabilities remaining an obstacle, subject to applicable regulations.

According to information obtained by Asharq Al-Awsat, GOSI has notified all companies and establishments of improvements introduced to its business services, including the debt waiver.

The measure is designed to enable businesses that have ceased operations to resolve their outstanding social insurance obligations and complete the regulatory procedures associated with closing their operations, easing the financial burden on owners whose businesses are no longer active.

Service Improvements

In a related development, GOSI's improvements include upgrades to services for registering businesses, terminating their activities and managing ownership records, alongside efforts to resolve recurring technical problems and improve the quality of digital services.

The changes are intended to improve the user experience and accelerate transaction processing.

GOSI has also expanded electronic payment options through its GOSI Business app, allowing employers to pay amounts exceeding 30,000 Saudi riyals ($8,000) in multiple installments.

The measure aims to make it easier for businesses to meet their financial obligations while providing greater payment flexibility.

The updates also include measures to increase transparency in transaction processing by clarifying the reasons for rejecting occupational injury claims and contributor-related transactions.

Notifications have also been introduced through the GOSI Business and Tawakkalna apps to inform users when applications are received, accepted, returned, or rejected.

Together, the improvements reflect GOSI's efforts to modernize its digital services, simplify procedures for employers and improve the management of social insurance obligations.

The measures are also intended to support the business environment and help resolve outstanding financial and administrative matters involving businesses.


From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
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From Aramco's Profits to State Budget Revenue: How Do Oil Proceeds Reach Government Coffers?

A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)
A general view shows Ras Tanura's oil production plant near Dammam in Saudi Arabia's Eastern Province (AFP)

Saudi Aramco's financial results and Saudi Arabia's third-quarter budget performance report, released on the same day, revealed a divergence between the company's rising profits and declining government oil revenue recorded in the state budget.

While Aramco's net income rose 34.2% during the first nine months of 2026 to SAR 380.6 billion ($101.5 billion), government oil revenue fell 1.3% over the same period and declined approximately 23% in the third quarter alone.

Comparing the two indicators does not necessarily imply a direct relationship between the company's profits and the revenue flowing into government coffers. Corporate earnings are recognized under different accounting principles from those governing the calculation and collection of government revenue.

The financial relationship between Aramco and the government also involves multiple channels, including taxes, royalties, dividends and offsetting settlements, each with its own payment and collection schedule.

Aramco's Profits and Cash Flows

Aramco reported net income of SAR 380.6 billion ($101.5 billion) for the first nine months of 2026, compared with SAR 283.6 billion ($75.6 billion) in the corresponding period last year, an increase of 34.2%.

Adjusted net income reached SAR 368.9 billion ($98.4 billion), up from SAR 302.3 billion ($80.6 billion) a year earlier.

However, the increase in earnings was not accompanied by a comparable rise in cash generated by the company's operations, according to its financial report.

Cash flow from operating activities totaled SAR 355.8 billion ($94.9 billion), compared with SAR 357.6 billion ($95.4 billion) in the same period last year, remaining largely unchanged.

Aramco attributed this to changes in working capital, which refers to funds tied up in day-to-day operations, including outstanding sales receivables, inventories and amounts owed to or by the company.

These movements limited the extent to which higher earnings translated into operating cash flow.

Meanwhile, free cash flow increased to SAR 221.6 billion ($59.1 billion), compared with SAR 217.3 billion ($57.9 billion) a year earlier.

This metric measures the cash remaining after capital expenditures are deducted from operating cash flow. It benefited from a reduction in capital expenditures to SAR 134.2 billion ($35.8 billion), from SAR 140.3 billion ($37.4 billion) in the comparable period.

Oil Revenue in the State Budget

On the other side of the equation, Aramco's earnings growth was not mirrored by a corresponding increase in government oil revenue.

Ministry of Finance data showed that oil revenue fell 23% year on year in the third quarter to SAR 116.5 billion ($31.1 billion), compared with SAR 150.8 billion ($40.2 billion) in the same period last year.

Over the first nine months of 2026, oil revenue totaled SAR 446.3 billion ($119 billion), down from SAR 452.4 billion ($120.6 billion) in the corresponding period of 2025, representing a relatively modest decline of approximately 1.3%.

By contrast, non-oil revenue increased 8% during the nine-month period to SAR 412.5 billion ($110 billion), helping lift total budget revenue by 3% to SAR 858.9 billion ($229 billion).

In the third quarter alone, non-oil revenue rose 20% to SAR 142.6 billion ($38 billion).

The growth in non-oil revenue therefore helped cushion the impact of declining oil revenue on the government's overall income.

Third-quarter expenditure totaled SAR 343.4 billion ($91.6 billion), against revenue of SAR 259.1 billion ($69.1 billion), resulting in a quarterly budget deficit of approximately SAR 84.3 billion ($22.5 billion).

Why Don't the Figures Move in the Same Direction?

Part of the divergence between Aramco's financial results and government budget revenue stems from the different nature of the figures themselves.

The company's profits are recognized according to its accounting results, while budget figures reflect government revenue actually collected during the reporting period.

Moreover, the government's financial returns from Aramco's operations flow through several channels, including taxes, royalties and dividends, with differences in when these amounts become due and when they are paid.

Accounting profits do not necessarily translate into cash inflows during the same period. Liquidity is affected by the timing of receivables collection, inventory movements and operating payments.

This distinction is also evident in financial transactions between Aramco and the government, which are not limited to direct cash payments but include the settlement of certain mutual obligations through offsets.

For example, Aramco's cash income tax payments fell to SAR 2.8 billion (approximately $747 million) in the third quarter, compared with around SAR 51 billion ($13.6 billion) in the second quarter, as amounts due to the company from the government were settled by offsetting them against its tax obligations.

Under this mechanism, amounts owed to one party are deducted from what that party owes the other, rather than transferring the full amount in cash.

Such offsets affect both the volume of cash payments and the timing of financial transfers between Aramco and the government.

Consequently, government oil revenue does not necessarily move in the same direction as Aramco's financial results, since each is influenced by different factors and accounting mechanisms.

While the company's profits reflect its financial performance during a given period, government revenue recorded in the budget depends on the taxes, royalties and dividends due to the state, as well as the timing of their collection and settlement.

Aramco's profits may therefore increase during a period when government oil revenue is declining.

Overall, the results demonstrate Aramco's continued ability to generate strong profits and maintain substantial cash flows, supporting its capacity to sustain investment and distribute dividends to shareholders, foremost among them the Saudi government.

At the same time, growth in non-oil revenue underscores the importance of diversifying budget income sources to mitigate fluctuations in oil revenue, broaden the sources supporting public finances and advance the Kingdom's economic transformation.


Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
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Crypto Dips on Democrat Midterm Wins, Binance Hack Dents Optimism

Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)
Representation of cryptocurrencies are seen in this illustration taken September 10, 2025. (Reuters)

Cryptocurrencies briefly dipped on Wednesday as Democrats won majorities in both the Senate and House in the US midterm elections, a potential blow to an industry that has pushed for faster deregulation for digital assets.

The sector has spent more than $300 million backing crypto-friendly Democrats and Republicans in roughly equal measure during the current and previous election cycles, hoping to pass legislation US crypto companies say will ‌put them on ‌a solid legal footing and allow them to thrive.

Bitcoin ‌briefly ⁠touched a six-week ⁠low before recovering to trade roughly flat by 0715 GMT at $78,070. Ether traded at $2,292, up just 1%.

Bitcoin has fallen by around 41% since hitting record highs above $122,000 in October 2025, bringing the value of the broader crypto market to around $2.61 trillion, according to CoinMarketCap.

The market has lost some $300 billion in value in the last month alone, as deepening concern about future returns from AI and the ⁠strain of rising borrowing costs pushed investors into less risky ‌assets such as government bonds and ‌safe-haven currencies.

Sentiment has also been hurt by the $6 billion hack of the Binance platform last ‌week, the largest heist in history.

On Tuesday, Binance customers had withdrawn ‌a net $4.72 billion from the world's largest cryptocurrency exchange since it reopened following the hack at the weekend.

"The market may be re-evaluating the risk-reward profile of crypto assets. On one hand, the string of security incidents is forcing investors to re-examine the ‌industry's security infrastructure and custody risks," Tim Sun, senior researcher at HashKey, said.

"On the other hand, potential shifts in ⁠the US political landscape ⁠could stall the progress of structural crypto legislation and institutional framework development. All of these factors leave the crypto market facing strong headwinds," he said.

US President Donald Trump, who vowed to make the United States the "crypto capital of the world" during his 2024 presidential campaign, has made his own forays into digital assets, with the launch of his "Trump" meme coin, plus his family's World Liberty Financial crypto platform, among other ventures.

The sector has seen sweeping reforms in the almost two years since Trump returned to office, including lighter enforcement and the creation of a strategic bitcoin reserve.

Washington has also allowed for easier access to banking and exchange-traded products and passed a federal stablecoin law that could help these assets move into the mainstream payments and money transfer systems.