Russia, Syria Sign $2.7Bln Oil Refinery Deal

MosNews: The Syrian government has signed a $2.7 billion memorandum of understanding with the Russian company Stroytransgaz for construction of an oil refinery and petrochemical plant in northeast Syria, the official Syrian news agency reported on Tuesday, Dec. 27.

MosNews has reported on Stroytransgaz’s $2 billion proposition in November. “The Ministry of Oil has responded (positively) to the request and offered all it takes to support the launch of the project in Syria,” the official news agency of Syria quoted Oil Minister Ibrahim Haddad as saying at that point.

The project, to be completed in five years, would be built in Deir Ezzor province, 286 miles northeast of Damascus. The petrochemical plant would have an annual capacity of 430 million gallons of gasoline. The refinery will produce about 140,000 barrels of refined product daily. An estimated 2,000 jobs would eventually be created, the agency reported.

The Russian company will build the plant and supply everything but infrastructure — including water, electricity, roads and administrative facilities, Haddad said.

Syria will take full control of the facility after 25 years, earning part of the revenue ranging from 15 percent to 60 percent in the interim.