In a significant development for the Syrian energy sector, Syria’s state-run petroleum company has entered into a groundbreaking agreement with Chevron, the American oil giant, and Power International Holding from Qatar. This pivotal memorandum of understanding was officially signed in Damascus, with Tom Barrack, the U.S. special envoy to Syria, present to witness this historic occasion.
On February 4, 2026, the Syrian Petroleum Company took a crucial step towards rejuvenating its offshore oil and gas capabilities by formalizing this collaboration. According to the state news agency SANA, the primary goal of this agreement is to foster strategic partnerships that will enhance energy sector cooperation, specifically focusing on the exploration and development of oil and gas reserves within Syria's territorial waters. Moreover, the deal is designed to encourage investment and broader development initiatives within the energy landscape of the country.
This agreement represents Syria's inaugural venture into offshore energy exploration, a move that underscores the government's ambition to boost hydrocarbon production and attract international collaboration. Youssef Kabalawi, the CEO of the Syrian Petroleum Company, emphasized the significance of this agreement by labeling it as "the most important" offshore energy exploration contract in Syria's history. He expressed optimism about commencing mobilization and drilling activities before summer, indicating that the process of tapping into the gas reserves could span up to four years.
The oil and gas industries in Syria have faced severe setbacks due to the protracted conflict that has ravaged the nation for nearly 15 years, resulting in the tragic loss of half a million lives and extensive destruction across the country. Before the onset of the conflict, which began with an uprising against President Bashar Assad's regime in March 2011, the oil sector served as a cornerstone of Syria's economy. At that time, the nation was producing approximately 380,000 barrels of oil daily, with exports—primarily directed toward Europe—generating over $3 billion in revenue during 2010. Oil revenue accounted for roughly 25% of the government’s budget during those years.
Recently, Syrian government forces managed to reclaim vast areas of northeast Syria, particularly the oil-rich eastern regions, from Kurdish-led factions. This territorial gain could potentially facilitate exploration activities in some of the nation's largest oil fields. Following the removal of Assad in December 2024, the new authorities in Syria are actively working to revitalize the economy, focusing on leveraging the country’s natural resources for recovery and growth.
