Syria's northeast begins oil deliveries to Damascus

Oil tanker trucks lined up in Syria's Qamishli ahead of delivering oil from Syria's northeast fields to Homs refinery, prior to distributing it later to the rest of the country.

Kurdish-led authorities in northeast Syria have begun providing oil from local fields they manage to the central government in Damascus, Syrian oil ministry spokesman said.

It was the first public acknowledgement of internal oil deliveries from Syria's oil-rich northeast to the Islamist-run government installed after former leader Bashar al-Assad was toppled by rebels in December.

A source from northeast Syria's semi-autonomous administration said that the deal involved sending 5,000 barrels a day of crude from the Rmeilan field in Hasakah and other fields in Deir al-Zor province to a refinery in Homs.

Syria exported 380,000 barrels of oil per day (bpd) in 2010, a year before protests against Assad's rule spiralled into a nearly 14-year war that devastated the country's economy and infrastructure - including its oil.

Oilfields changed hands multiple times, with the Kurdish-led Syrian Democratic Forces ultimately capturing the key northeast fields, although U.S. and European sanctions made both legitimate exports and imports difficult.

The United States issued a six-month sanctions exemption in January allowing some energy transactions and the European Union is set to suspend its sanctions related to energy, transport and reconstruction.

In the interim, Syria is seeking to import oil via local intermediaries after its first post-Assad import tenders garnered little interest from major traders due to sanctions and financial risks, several trade sources said.

The internal oil trade is also a key part of talks between the northeast region and the new authorities in Damascus, which want to bring all regions in Syria under centralised control.