Reserves and Production

  • According to the Oil and Gas Journal, as of January 1 st , 2009 Syria had 2.5 billion barrels of petroleum reserves
  • Since peaking in 1996 at 583,000 barrels per day (bbl/d), Syria’s crude oil production has been in decline
  • In 2008, crude oil production declined to 390,000 bbl/d
  • Total production in 2008, which includes crude and natural gas liquids (NGL), is estimated at 450,000 bbl/d
  • In 2008 Syria’s domestic consumption of petroleum products was 256,000 bbl/d, while net exports amounted to 192,000 bbl/d, Source of info:   www.eia.doe.gov/
  • The Syrian Petroleum Company (SPC), an arm of the Ministry of Petroleum and Mineral Resources (MoPMR) is mandatd to manage the upstream oil production and development
  • The SPC has undertaken efforts to reverse the declining trend of oil production and exports by increasing oil exploration and production in partnership with foreign oil companies
  • Syria's largest foreign oil producer is   Al Furat Petroleum Company, a joint venture established in 1985 which includes the Syrian Petroleum Company (SPC), Shell, India's Oil and Natural Gas Corporation, and the China National Petroleum Company (CNPC)

 

Exports

  • In 2008, Syrian net petroleum exports were estimated to be 192,000 bbl/d
  • All oil exports are marketed by Sytrol, a Syrian state oil marketing firm
  • According to 2008 OECD data an estimated 147,000 bbl/d of Syrian crude oil exports went to OECD European countries

 

Pipelines and Export Terminals

  • Most Syrian oil is moved by trucks and tankers
  • In April 2009, talks began between Syria and Iraq to repair and re-open the 800 km Kirkuk – Banias Oil Pipeline, from the oil fields in northern Iraq to the Syrian port of Banias
  • The Kirkuk – Banias Oil Pipeline, exports production from the fields in Northern Iraq, has been closed since 2003. At its peak, the line had a capacity of around 300,000 bbl/d
  • Syria   has a developed domestic pipeline system for transporting crude and petroleum products managed by the Syrian Company for Oil Transportation (SCOT)
  • Pipelines include the 250,000-bbl/d, 550 km Tel Adas-Tartous crude line linking the SPC   Tanganyika fields to the Port at Tartous and the refinery at Homs
  • SCOT   manages 3 Mediterranean oil export & import terminals.
  • The Port of Baniyas (7 berths) and the Port of Tartous (2 berths) are the principal ports and the Port of Lattakia handles smaller cargos
  •   All these terminals are connected to refineries through the domestic pipeline network

 

Refining

  • According to the Oil and Gas Journal, as of January 2009, Syria's total refining capacity approximatly 240,000 bbl/d
  • Syria's two state-owned refineries are located at Baniyas and Homs, which refine 133,000 bbl/d and 107,000 bbl/d, respectively
  • Syria’s refineries produce a surplus of heavier products, including fuel oil, but fail to meet demand for lighter products, including distillates
  • Syria   plans to upgrade both refineries to process heavier crudes and replace output of fuel oil with lighter products to meet European Union standards for fuel imports
  • The   Syrian Company for the Distribution of Petroleum Products (Mahrukat) manages all aspects of marketing of Syrian oil products, including the majority of gasoline retail outlets
  • In May 2008, the GoS increased the price of diesel by 238% which resulted in a 61% increase in transport costs
  • The GoS also decreed that all trucks in transit at Syrian boarders should pay the difference in cost of 650 litres of diesel at the international rate
  • This amount represents the difference between the local and international fuel rates (i.e. the local cost is SYP 7 per liter, while the international rate is SYP 49 per liter), therefore, the payment will be (49 – 7 = 42 x 650 = SYP 27,300 (US $440) per truck)
  • However, in April 2009 the government reduced the diesel price by 20% which resulted in a logistics cost reduction of 25 – 30%

 

Fuel Supply and Storage  

  • The fuel supply for internal use is available in all main cities
  • However, the import and export is fully monopolized by the GoS
  • WFP maintains contacts with the GoS to import/export fuel when required

 

Fuel Demand  

  • According to data from Mahrukat, the state-owned firm with a monopoly on the distribution of oil products, demand for oil products on the domestic market fell in the first half of 2009
  • Demand for gas oil fell by a 33% to 3.1 million cubic meters, while demand for kerosene and fuel in volume terms fell by 16.3% and 7.6% percent respectively
  • According to the data published by The Syria Report in August, demand for gasoline rose by 9%, fuelled by the ongoing rise in automobiles taking to the streets
  • In 2009 imports and procurements from local refineries by Mahrukat totaled 6.9 million tons and cost SYP 119.5bn (US$ 2.6bn)
  • Mahrukat purchased 5.2 million tons from local refineries at a cost of SYP 92.51 billion (US$ 2 billion) and imports totalled 1.7 million tons at a cost of SYP 26.9bn (USD 586.5m)
  • The fall in demand and the decrease in world prices of crude oil and its derivatives led to a decline in the company’s import bill
  • Fuel is sold in the local market at prices much lower than the procurement costs, this is in line with the government’s policy of subsidizing oil products

Fuel Demand

 

2008

2009

BCM

SYP m

BCM

SYP m

Gas Oil

8,398,500

93,091

9,647,484

67,369

Gasoline

2,068,372

80,703

2,015,572

63,409

Kerosene

142,594

2,589

157,887

2,474

Fuel

6,850,515*

40,953

6,245,311*

37,499

Source: Mahrukat   (Syria Today, Sep 2009)

* in tons

 

Demand

Does local supply (domestic refinery and import combined) meet the needs of the country, especially for aviation and ground fuels?

Yes