Syria's HTS government buys oil from Kurds as country remains fragmented

Deal could help de-escalate tension between the central authorities and US-backed Kurds

Syrian Democratic Forces fighters in Qamishli, north-eastern Syria. AP

The Hayat Tahrir Al Sham government has struck a deal to import oil and gas from areas run by a mostly Kurdish militia in east Syria, sources on both sides said on Sunday, a move that could de-escalate an ethnic conflict and competition for resources in the area which have kept the country fragmented since former president Bashar Al Assad's ouster.

An official in the administration of the north-east, which is controlled by the Kurdish-led and US-backed Syrian Democratic Forces (SDF), said lorries have started transporting about 5,000 barrels per day to the central government. The oil will be used in the country's two refineries in the governorate of Homs and on the coast, he said, adding that unspecified quantity of gas will soon be flowing through the country's pipeline.

“It will help de-escalate tension with Damascus,” he said.

Oil has been a key component of the underground economy in Syria since the civil war. Its trajectory changed dramatically after the regime's removal by HTS-led forces in December. The new order is seeking to restore control in the east and tighten its grip over areas where Mr Al Assad enjoyed support.

The Syrian state news agency Sana quoted a Syrian oil ministry spokesman as saying that the new deal falls “in the interest of the Syrian people”. He said that it was drawn up for three months with the possibility of extension.

Areas that were held by the regime and are now controlled by HTS, have faced severe shortages of power and refined oil products. The situation has been better in the east due to the SDF controlling almost all of the country's oil and gas production, as well as its largest hydroelectric dam, although the infrastructure for production and transport has been in need of repair since before the civil war.

Over the last decade, the SDF has sold oil to both the former regime, and to areas controlled by HTS and rebel groups allied with Turkey in north-west Syria. Despite the infighting, each side maintained smuggling routes that helped finance them.

Syria officially produced about 400,000 barrels per day of oil in 2010, the last year before the outbreak of a pro-democracy revolt. Regime forces killed thousands of civilians in an ensuing crackdown. By the end of the year the revolt had become armed and Syria was in the midst of a civil war.

But actual oil production in 2010 was 200,000 bpd, due to a lack of investment, corruption and dire need of repair. Output is currently running at about 50,000 bpd, according to an energy sector specialist.

In 2012, the former regime started handing Kurdish militias oil and gas areas so that it could focus on maintaining its power in Damascus in the face of the armed rebellion, which came to be dominated by former Al Qaeda affiliate, HTS.

The SDF has been caught in its own conflict with Turkey since 2015. In the wake of the collapse of the former regime, Turkish proxies allied with HTS have also launched an offensive to retake parts of the east, but that front has been in a stalemate.

The SDF and HTS have been engaged in inconclusive talks aimed at handing over the east to the new order in Damascus. Last week, Ilham Ahmed, an official in an SDF political wing, told The National that the militia will not give up their weapons as long as ISIS remains active on Syrian territory.

HTS have largely stayed away from direct military fight with Kurds, as channels opened between the group and Washington. The new authorities have also been busy with other issues, including the continued existence of pro-Hezbollah elements and weapon smuggling rings on the border with Lebanon.

Late on Saturday, the Israeli army bombed areas on the border, at least the third time it had done so since Mr Al Assad's removal. The Israeli army said the raids were aimed at Hezbollah smuggling routes.