Syria is planning to put back into service the Haditha–Baniyas oil pipeline, through which Iraqi oil will be able to reach the Mediterranean coast. According to Yusuf Kablawi, head of the Syrian Oil Company, the rehabilitation will take between 30 months and three years. Talks with Baghdad on the final contract are already under way and are expected to be concluded within the next two to three months. Only after the deal is signed will engineering surveys begin, followed by procurement of materials and construction work. For now, the parties have not disclosed either the investment amount or the level of transit fees for Damascus.
In July 2025, two memorandums of understanding were signed in the United States. The first was between the Syrian Oil Company and Iraq’s Basra oil company, and the second was with an international consortium led by the American company Chevron. The consortium also included UCC Holding and TI Capital. The ceremony took place in the presence of Iraq’s prime minister and the U.S. energy minister. The consortium will handle preparation of technical, economic and financial studies, as well as development of the project’s implementation structure.
The capacity of the upgraded pipeline is expected to be 1.5–2 million barrels per day. For Syria, it is a direct source of revenue: transit fees, storage charges, and port services. For Iraq, it is an additional Western export route via the port of Baniyas, reducing dependence on existing corridors. In addition, if the final contract allows for it, part of Iraq’s oil could be sent for processing at a plant in Baniyas.
The project effectively revives the historical Kirkuk–Baniyas route, which operated from 1952 and was halted after damage during the U.S. invasion of Iraq in 2003. The old pipeline was about 895 kilometers long and had an oil throughput capacity of 13.5 million tons per year. Along it there were 23 oil storage facilities with a total capacity of 575,000 tons. The new targeted capacity is significantly higher than the previous one, so the project will require large-scale upgrades to pumping stations, storage facilities, and the Baniyas port infrastructure.
The pipeline talks are taking place amid Damascus’s efforts to rebuild the oil sector after the war and sanctions. Syria currently produces about 100–110,000 barrels per day. Kablawi expects output to rise to 250,000 barrels by the end of 2027 and to reach one million barrels per day by 2030. By comparison, before the war began in 2011, according to the U.S. Energy Information Administration, the country produced about 383,000 barrels per day. The new target looks highly ambitious.
The return of foreign companies is already beginning. The U.S. company HKN Energy has taken over the management and operation of the Rumeylan oil field in the Hasakeh province, repairing wells, drilling new ones, and upgrading infrastructure. Company chief Mark Rollins said his team has been working at the site for two months and called Rumeylan one of Syria’s most important fields. This process was accelerated by the U.S. lifting comprehensive sanctions in July 2025 and repealing the “Caesar Act” in December of the same year; British Gulf Sands has already resumed investment in the Diyala field in Hasakeh province.
Comments on the news
What is the “Caesar Act” (Caesar Act) imposed by the United States on Syria, and why did its repeal in December 2025 become a decisive condition for the return of foreign oil companies? — The “Caesar Act” is a broad U.S. sanctions regime targeting the government of Bashar Assad, based on reports of torture and violence in prisons. The law prohibits foreign companies from doing business with Syrian authorities, freezes assets, and effectively blocks investment in the Syrian economy, including the oil sector. Due to the threat of secondary sanctions, even major international oil majors avoided any contact with Damascus. Repealing this law in December 2025 removes the main legal and financial barrier: oil companies no longer risk losing access to the U.S. financial system, meaning they can legally participate in rebuilding Syria’s oil infrastructure.
Who effectively controls oil fields in the northeast of Syria, including Rumeylan in Hasakeh province, and does this create obstacles to Damascus’s plans to restore the pipeline? — These fields are controlled by the Syrian Democratic Forces (SDF), whose core consists of YPG units supported by the United States. Rumeylan is one of the country’s largest fields, and Damascus does not have operational control over it. Production revenues go to the autonomous administration of the northeast rather than to the central government. This creates a serious obstacle: restoring the pipeline from the northeastern fields to the coast requires either an agreement between Damascus and the SDF or the return of territories under Syrian army control. As long as this has not happened, Damascus’s plans to resume full-scale oil pumping remain in question.
Why is the port of Baniyas important for Syria’s oil infrastructure, and what historical role did it play even since the days of the Kirkuk–Baniyas route? — The port of Baniyas is a key energy hub on Syria’s Mediterranean coast. It hosts an oil refinery, tanker terminals, and oil storage facilities. Historically, the port was the endpoint of the Kirkuk–Baniyas pipeline, which since the 1950s delivered Iraqi oil to the coast for export to Europe. This made Baniyas strategically important not only for Syria but for the entire Middle East oil market. Today, its significance remains: through Baniyas, Syrian oil can be shipped and, potentially, Iraqi oil as well if the pipeline is restored. The port’s return to full operation is a central condition for integrating Syria’s oil sector into the global market.
Full version: سوريا تتوقع إعادة تأهيل خط أنابيب النفط مع العراق خلال 3 أعوام