Syria signs landmark offshore oil field deal with Chevron and a Qatari investor

Syria Signs Historic Offshore Oil and Gas Deal with Chevron and Qatar

Syria’s state-owned petroleum company has entered into a landmark agreement with U.S. energy giant Chevron and Qatar-based Power International Holding to develop the country’s first offshore oil and gas field. The memorandum of understanding, signed Wednesday in Damascus, marks a significant step in Syria’s efforts to rebuild its energy sector after years of devastating conflict.

The signing ceremony took place in the presence of Tom Barrack, the U.S. special envoy to Syria, signaling potential warming relations between Syria and Western powers in the energy sphere. According to Syria’s state news agency SANA, the agreement aims to foster strategic partnerships in energy exploration and development.

Youssef Kabalawi, CEO of the Syrian Petroleum Company, highlighted the historic nature of the deal, calling it “the most important” offshore energy exploration agreement in the country’s history. “Before the summer, God willing, we will start mobilization and drilling,” Kabalawi said, adding that reaching the gas reserves could take up to four years.

The agreement encompasses cooperation in offshore exploration and development of oil and gas resources in Syria’s territorial waters. It also includes broader initiatives to attract investment and support the overall development of Syria’s energy sector, which has been severely hampered by the country’s protracted conflict.

Syria’s petroleum industry was once a cornerstone of its economy before the civil war erupted in 2011. Prior to the conflict, the country produced approximately 380,000 barrels of oil per day, with exports—primarily to European markets—generating more than $3 billion in revenue in 2010 alone. The oil sector contributed roughly 25 percent of government budget funds during that period.

The nearly 15-year conflict, which has claimed an estimated half a million lives, decimated Syria’s oil and gas infrastructure. Production plummeted as various factions, including ISIS at one point, seized control of oil-rich territories. Many facilities were damaged or fell into disrepair, while international sanctions further complicated Syria’s ability to revitalize the sector.

Recent developments on the ground may have created favorable conditions for this new energy agreement. Syrian government forces captured significant portions of northeast and oil-rich eastern Syria last month from Kurdish-led fighters. This territorial gain could potentially clear the path for exploration and development of some of Syria’s largest oil fields.

The timing of this agreement is particularly noteworthy given the political changes in Syria. According to the report, the country’s new authorities, who came to power after removing President Bashar Assad in December 2024, are actively seeking to rebuild Syria’s shattered economy. This deal appears to be part of those efforts to attract foreign investment and expertise.

For Chevron, this agreement represents a significant opportunity to expand its Middle Eastern operations. The American energy corporation has been increasingly active in the eastern Mediterranean region, particularly with natural gas developments. Qatar’s involvement through Power International Holding adds another layer of regional cooperation to the project.

Energy analysts suggest that successful offshore exploration could significantly boost Syria’s economic recovery prospects. However, challenges remain, including ongoing political instability, technical hurdles of offshore drilling, and the need for substantial infrastructure investment.

The agreement comes at a time when global energy companies are reassessing their presence in various regions amid geopolitical shifts and the global transition toward cleaner energy sources. For Syria, diversifying its energy resources through offshore development could provide a much-needed economic lifeline as the country attempts to rebuild after years of devastating conflict.