August 30, 2008

Syria signs oil refinery deal with China

SANA news agency reported that China has signed a deal with Syria to build an oil refinery as part of plans to bolster cooperation in the oil and gas industry. The deal was signed on April 2nd 2008 alongside an agreement by China to provide Syria with CNY 20 million to finance a series of joint projects in oil, telecommunication and agriculture.

As per report, the refinery will have a daily refining capacity of 100,000 barrels of crude oil and is due to be completed by 2011. It will be built in the Abu Khashab region of the eastern oil hub of Deir Ezzor.

China and Syria also signed a framework agreement to bolster oil and gas cooperation, including oil exploration. The agreements were signed by representatives of the China National Petroleum Corporation and Syrian oil ministry officials on the sidelines of a visit to Damascus by a Chinese communist party delegation.

In July 2007, Chinese state media reported that Beijing was planning a series of oil related projects in Syria, including a USD 1 billion oil refinery. Over the past years Syria has signed several oil and gas deals with foreign companies and launched tenders for exploration in both sectors in a bid to boost its dwindling energy output.