On September 13, the Ministry of Energy of Syria and the Saudi IT firm “CASHIN” entered into a strategic partnership agreement aimed at developing a national digital platform dedicated to the trading and governance of petroleum products. The Ministry’s Damascus headquarters formalised this deal.

The agreement focuses on forming a “project company” to develop and manage a national digital platform for the petroleum products sector. It aims to create an integrated digital ecosystem that includes regulatory bodies, fuel station operators, transport, distribution, tanker operations, and related storage and processing activities, ultimately serving both business and individual end-users.

On August 26, Minister of Energy Mohammed Al-Bashir engaged in discussions with the Saudi-Syrian Business Council regarding opportunities for collaboration between the two nations. The talks addressed various sectors including electricity, oil, mining, water, and sanitation, highlighting potential contributions from Saudi companies in these areas.

Digital Governance for Oil Trading

According to the Ministry, the project aims to enhance oversight, compliance, and performance efficiency while developing regulatory frameworks for the petroleum products sector.

Director of Technology and Digital Transformation at the Ministry, Abdul Karim Jaafar, stated that the partnership seeks to create a project company to operate an integrated national digital platform for governing and trading petroleum products, connecting all segments from production to consumers and financial operations.

Jaafar noted that the Ministry anticipates the platform will enhance digital monitoring and control of supply quantities, optimise allocations based on need, minimise waste, improve operational efficiency, and foster transparency and oversight in the sector. Moreover, he clarified that the partnership involves creating an independent project company to operate and develop the platform under the Ministry’s supervision, rather than just a technical contract.

CASHIN is tasked with the development, implementation, and operation of the system, alongside conducting studies and creating governance and operational models. Subsequently, CASHIN will transfer knowledge and technology to the Ministry’s and National Company teams to establish full management and development capabilities.

According to the Ministry’s Director of Digital Transformation, the Ministry is responsible for supervision, data provision, and system hosting, maintaining full data sovereignty and complete ownership of the code and technology as outlined in the comprehensive agreement.

Timeline & Overall Budget

According to Jaafar, within ten days of signing, the parties will establish a joint working committee to oversee the project. Both parties will then have up to 60 days to prepare a detailed work plan, project company documents, and a comprehensive agreement. This phase includes developing a roadmap and initiating a pilot run at selected fuel stations in Damascus and other cities, followed by a gradual expansion to additional stations and the complete supply chain.

Jaafar stated that the company “CASHIN” will cover all expenses related to initial development, operations, studies, and analyses, with the Ministry incurring no direct financial responsibilities during the pilot phase. He also mentioned that the total cost for establishing and developing the platform would be finalised within 60 days, contingent upon the approval of the comprehensive agreement.

Jaafar highlighted that consumers gain from improved availability and efficient distribution of fuel products, which results in less waste and reduced illegal activities. This enhancement also raises service quality at fuel stations by matching supply with real demand, improving inventory and distribution oversight. He pointed out that the platform promotes digital payments and self-service alternatives, which aid in effectively tracking fuel availability, pricing, and other essential aspects at the stations.

The platform seeks to combat illicit practices and fraud in fuel management by leveraging digital oversight through comprehensive data integration across inventory, transport, distribution, pumps, sales, and revenue collection. This will enhance tracking of fuel movements and identify discrepancies between received, stored, and sold quantities, while also improving monitoring of petroleum distribution to mitigate risks of market manipulation and unauthorised leakage.

CASHIN’s Expertise

The Saudi company CASHIN specialises in providing digital solutions for managing fuel stations through an integrated cloud-based ecosystem. Their comprehensive system automates processes involving pumps, tanks, station facilities, payments, and control dashboards, while also leveraging AI-driven insights for enhanced operational efficiency. With an emphasis on smoothly fusing operational procedures with financial systems, CASHIN stands out for its proficiency in energy technology, fintech, and digital transformation.

The company has significant expertise in automating fuel stations across Saudi Arabia using a “tank-to-bank” model. This model includes managing tanks, pumps, inventory, sales, payments, reconciliations, and digital analytics, with operational implementations already in place within the Saudi fuel station networks.