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Syria scales back fuel subsidies
syrIa
SYrIa’S oil ministry has scaled back fuel sub- sidies, barring owners of more than one vehicle and those with vehicles with larger-sized engines from the system.
The war-ravaged and sanctions-stricken country is scrambling to cut spending, as it grapples with the economic fallout of the coro- navirus (COVID-19) pandemic. The ministry announced the decision on subsidies on May 8 and it became effective the following day.
Subsidised fuel is distributed through a smart card system, whereby smaller cars are eligible for up to 100 litres of fuel a month at a cost of SYP250 ($0.49) per litre. Non-subsidised fuel is sold at SYP450 per litre.
The smart card system and the quota for sub- sidised fuel were introduced last year, as Syria was struggling with increasing fuel shortages. These shortages have been exacerbated by the shutdown of domestic oilfields and attacks on refineries and other oil infrastructure.
Western sanctions prohibit the supply of oil and petroleum goods to Syria, and the country
has relied on imports from Iran and russia to cover its needs. Shipments are also smuggled across the border from some of Syria’s neigh- bours, including Lebanon.
a report on Lebanese television on May 9 estimated that up to $400mn of subsidised fuel was being trafficked across the border to Syria each year. Lebanon is also in the grip of an eco- nomic crisis, and smuggling activity is making it difficult for the state to provide basic commodi- ties to the population.
MP Hadi abou al-Hosn of Lebanon’s Dem- ocratic Gathering political alliance, has said his group will go to the judiciary and question the government on the issue.
“While the Central Bank has put limits on the withdrawal of dollars from bank deposits to cover basic needs, such as wheat, fuel and med- icine, depriving people of their money, we see mobs draining the economy by smuggling flour and diesel across the illegal border crossings in both directions,” he said. “The situation is no longer bearable.”™
Petropars, NIDC sign cooperation pact
Iran
IraN’S Petropars Group and National Iranian Drilling Company (NIDC) have signed a memo- randum of understanding on developing oil and gas projects in the country, official energy news agency SHaNa reported on May 5.
Since the US resumed placing unilateral sanctions on Iran in 2018, Iranian companies have had to rely on their own technical expe- rience to continue upstream and downstream hydrocarbon projects. In recent months, local companies have had varying amounts of success onshore and offshore with projects including the development of the giant South Pars gas field in the Persian Gulf.
according to the press release from oil ministry-aligned news agency, the MOU was signed by CEO of Petropars Group Hamid reza Masoudi and Seyed abdullah Mousavi, CEO of
NIDC. The two companies reportedly stressed the need to provide conditions for cooperation in the implementation of future petroleum pro- jects—but did not mention which projects they had in mind.
Petropars has been instrumental in carrying out South Pars projects. Its latest project in the field, Phase 23, saw the installation of a platform last November.
The 2,500 tonne structure, to act as the sec- ond main platform for Phases 22-24 (SP22-24), was installed by an HL-5000 vessel. Earlier it was reported that Petropars was carrying out the platform assignment in place of a Chinese investor.
Petropars is owned by Naftiran Intertrade Co. (NICO), a subsidiary of the National Iranian Oil Company (NIOC).™
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