The Saudi Fund for Development has provided a grant to supply Syria with 1.65 million barrels of crude oil as part of efforts to support the country as it rebuilds its economy.
The fund signed an initial agreement with Syrian Energy Minister Mohammed Al Bashir, it said in a statement on Thursday. The grant aims to "enhance the operations of Syrian refineries and achieve both operational and financial sustainability", it said.
Its goals include supporting development, addressing economic challenges, fostering the growth of vital sectors and contributing to the achievement of sustainable development goals, the statement added.
This month, Syria confirmed the nation's first official crude shipment in 14 years, signalling its return to the global energy market. The 600,000 barrels of heavy crude set sail from the port of Tartus, under a deal with B Serve Energy, affiliated with global trader BB Energy, the Syrian authorities told Reuters.
The country was exporting about 380,000 bpd before civil war broke out in 2011. That has dropped sharply, driven by extensive damage to infrastructure and western sanctions, which also halted most exports from Syria and crippled the country's ability to import refined products.
After former president Bashar Al Assad's regime was toppled in December, western sanctions were eased. Syria is now taking steps to boost production and exports, as it receives increasing support from foreign powers and organisations.
Dubai port operator DP World signed an $800 million agreement to develop the port of Tartus. Saudi Arabia has also announced several initiatives to support Syria, including agreements worth 24 billion Saudi riyals ($6.4 billion) to support the rebuilding of the Syrian economy.
A total of 47 deals from more than 100 Saudi and international companies were signed at the Syrian-Saudi Investment Forum, covering key sectors including energy, industry, infrastructure, financial services, health, agriculture, communications and information technology. Several projects were also launched.
Last month, Saudi Arabia and Syria signed an agreement to boost and protect bilateral investments. The investment promotion and protection agreement is "aimed at establishing practical frameworks to strengthen joint investments and develop strategic projects in industry, services, infrastructure, and tourism", the Saudi Press Agency reported at the time.
In May, Saudi Arabia and Qatar jointly paid off Syria’s $15.5 million debt to the World Bank, unlocking access to critical reconstruction grants. Also that month, Damascus signed a $7 billion deal with a consortium of companies led by Qatar's UCC Holding to add 5,000 megawatts to the national grid.
