Syria's news agency SANA, announced that the Syrian Ministry of Petroleum and Mineral Resources signed the "Amrit" contract with Russia's Soyuzneftegaz on 25 Dec 2013 for offshore oil drilling, development and production in Block no. 2 of Syria's territorial waters.
The contracts covers oil exploration in the area between Tartous and Banyas, to a depth of 70km (43 mi.), an overall area of 2190sq km.
The contract stipulates beginning with surveys in the area and preparing studies to pinpoint potential drilling sites, with this stage costing over US$15million.
The second stage will involve drilling at least one test well, with estimated spend over US$75million. If successful, the company will carry out further drilling, development and production operations.
The contract also includes benefits such as training staff at the Syrian General Establishment of Petroleum to create a qualified Syrian workforce.
Soyuzneftegaz will be responsible for funding all the stages of the contract, and will begin operations immediately after the contract's ratification and publication.
Petroleum Minister Sleiman al-Abbas said this contract follows up on the lucrative cooperation between Russian and Syrian companies, noting that implementing the contract in the current circumstances in Syria will constitute a great challenge.
Al-Abbas hoped this contract will encourage companies in friendly countries, particularly Russia, to come and invest in Syria and carry out petroleum projects in it, affirming that all Russian oil and gas companies working in Syria are still operating despite the current conditions.
On the state of oil fields in the eastern region, the Minister said that terrorist groups have targeted the oil sector and vandalized its establishments, with the theft and primitive refining of oil then smuggling it to Turkey increasing after the EU gave this theft legal cover.
Russia's Ambassador to Syria Azamat Kulmuhametov said that this contract is proof of the strong economic relations between Syria and Russia, noting that this contract has special importance as it comes at a time when Syria is facing sanctions imposed by other countries.
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