Syria’s current oil strategy appears to focus on exporting heavy crude, due to the aging infrastructure.
Mohamad Ahmad, an economist and energy specialist at Karam Shaar Advisory Ltd., confirms that export revenues will go to the state treasury, according to the tender document published, where they will be allocated to public spending and providing services for Syrians.
Ahmad notes that oil revenues are subject to the principles of budget unity and non-allocation of revenues, meaning they will support various sectors such as security and paying military salaries, with the government giving priority to reconstruction.
He adds that oil exports will increase the Central Bank’s foreign currency reserves, which could eventually affect the exchange rate over time, though not immediately.