Syria Taps Chevron for First Offshore Oil & Gas Deal

Edward Lawson

Commodity

Energy

Economic

Middle East Situation

Political

Summary:

Syria's new government, with Chevron and Qatar, launches offshore oil exploration to revive its war-torn economy.

Syria's state-owned petroleum company has signed a memorandum of understanding with U.S. energy firm Chevron and Qatar-based Power International Holding to develop the nation's first offshore oil and gas field.

The deal was finalized on Wednesday in Damascus, with U.S. Special Envoy to Syria, Tom Barrack, in attendance. This agreement marks Syria's first official move into offshore energy exploration as its new government works to expand hydrocarbon production and attract foreign investment.

Unpacking the Energy Partnership

According to Syria's state news agency, SANA, the agreement is designed to build strategic partnerships within the energy sector. The cooperation will focus on several key areas:

• Offshore exploration and development of oil and gas resources within Syria's territorial waters.

• Broader initiatives to support investment and growth in the country's energy infrastructure.

This pact represents a significant step for Syria as it seeks to leverage international partnerships to unlock its untapped offshore potential.

Rebuilding a Battered Oil Industry

Syria's oil and gas sectors were severely damaged during the country's nearly 15-year conflict, which resulted in widespread destruction and the loss of half a million lives.

Before the conflict began in March 2011, the oil sector was a cornerstone of the Syrian economy. In 2010, the country produced approximately 380,000 barrels of oil per day, with exports, primarily to Europe, generating over $3 billion. At the time, oil revenue accounted for about a quarter of the government's budget.

New Leadership Focuses on Economic Revival

The country's new authorities, which came to power after removing President Bashar Assad in December 2024, are prioritizing economic recovery.

This energy deal follows recent developments on the ground. Last month, Syrian government forces captured large areas of the oil-rich northeast and eastern regions from Kurdish-led fighters. This strategic gain could open up some of the country's largest oil fields for further exploration and development, aligning with the new government's economic agenda.

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