The Syrian Democratic Forces (SDF) have begun supplying oil from the fields they control in northeastern Syria to the new government in Damascus.

The spokesperson for the Syrian Ministry of Oil, Ahmad Suleiman, told Reuters today, Saturday, February 22, that the SDF has started supplying oil from fields in al-Hasakah and Deir Ezzor provinces, but he did not provide further details, including the amount supplied or the conditions of the deal.

This is the first announced delivery from northeastern Syria, which is rich in oil, to the new government.

This operation comes at a time when negotiations are ongoing with the interim Damascus government regarding the integration of the SDF into the Syrian army and consolidating government control over northeastern Syria.

Economic researcher, Munaff Koman, stated through his Facebook account that the return of oil to the refineries in Homs and Baniyas will contribute to supporting electricity, potentially increasing electrical supply to four hours instead of two. The more oil, fuel, and gas flow to thermal stations, the better the electricity situation will improve.

Syria has two oil refineries: Baniyas, which has a production capacity of 120,000 barrels per day, and Homs refinery, which has a capacity of 100,000 barrels per day.

Control over oil fields in northeastern Syria has changed several times over the past years, until the SDF ultimately gained control over the main fields, despite American and European sanctions that have made legitimate imports and exports difficult.

The United States issued a six-month sanctions waiver last January, allowing for some energy-related transactions.

Meanwhile, the new Syrian government is seeking to import oil through local intermediaries, after its initial bids for imports, following the fall of Bashar al-Assad, did not attract much interest from major traders due to sanctions and financial risks, according to several commercial sources reported by Reuters.

Sources told Reuters that the SDF are likely to have to relinquish control over oil revenues as part of any settlement with Damascus.

The commander of the SDF, Mazloum Abdi, stated last month that his forces are open to transferring responsibility for oil resources to the new administration, provided that wealth is distributed fairly among all provinces.

Syria exported 380,000 barrels per day in 2010, just before the Syrian revolution that lasted 14 years leading to al-Assad’s overthrow.

The SDF currently controls large areas in eastern and northeastern Syria, where most of the oil reserves, totaling 2.5 billion barrels, are located, according to statistics from the US Energy Information Administration (EIA).

The region also includes the largest fields, including the al-Sweidiyeh field, which produced between 110,000 to 116,000 barrels of oil per day, and the Ramilan field, which produced 90,000 barrels per day, as well as the Deir Ezzor fields, notably the al-Omar oil field that produced around 80,000 barrels per day, according to the specialized EIA platform.