By Anietie anii-bassey
Syria’s state-owned petroleum company has signed a memorandum of understanding with partners from the United States and Qatar to begin developing the country’s first offshore oil and gas field, a move that Syrian officials portrayed as a major step toward reviving a battered energy sector and attracting foreign investment after years of war.
The agreement was concluded Wednesday in Damascus between the Syrian Petroleum Company, U.S. energy giant Chevron and Qatar-based Power International Holding. The signing ceremony was attended by Washington’s special envoy to Syria, Tom Barrack, underscoring the political as well as commercial significance of the deal.
According to Syria’s state news agency, the memorandum is intended to deepen strategic cooperation in the energy sector and will focus on offshore exploration in Syrian territorial waters, along with the development of potential oil and gas resources discovered there. The pact also includes broader commitments to encourage investment, rebuild technical capacity and stimulate long-term growth in the country’s energy industry.
For Syria, the deal represents the first formal move toward offshore hydrocarbon exploration, expanding beyond the onshore fields that have historically dominated its production. Officials have signaled that the government hopes the project will help diversify revenue sources, modernize infrastructure and restore output levels that collapsed during nearly 15 years of conflict.
Syria’s oil and gas industry was once a cornerstone of the national economy before fighting erupted in 2011 following an uprising against then-President Bashar Assad.
At that time, the country was producing roughly 380,000 barrels of oil per day, exporting much of it to European markets and generating more than $3 billion in annual revenue. Oil income accounted for about a quarter of the government’s budget, funding public services and state operations.
Years of warfare, sanctions, infrastructure damage and the fragmentation of territorial control sharply reduced production and disrupted exports. Fields changed hands multiple times, pipelines and refineries were damaged, and skilled workers fled or were displaced, leaving the sector operating far below its former capacity.
The new offshore initiative comes as Syria’s political and security landscape continues to shift. Government forces last month regained control over large swaths of northeastern and oil-rich eastern territory that had been held by Kurdish-led fighters, developments that analysts say could eventually open the door to renewed activity at some of the country’s most productive onshore fields.
The authorities who took power after the removal of Assad in December 2024 have made economic recovery a central priority, pledging to rebuild critical industries, stabilize public finances and reengage with foreign partners. Revitalizing the energy sector is seen as essential to those efforts, given its potential to generate export earnings, provide fuel for domestic use and underpin broader reconstruction.
While the memorandum does not yet specify timelines, production targets or financial terms, officials and industry observers say it signals growing international interest in Syria’s offshore potential and suggests that Damascus is seeking to reposition itself as an investment destination after years of isolation.
Much will depend on the security environment, regulatory framework and the extent to which sanctions and political disputes continue to shape foreign companies’ willingness to commit large sums to complex offshore projects. Still, the signing in Damascus marks a notable step for a country attempting to turn a page after more than a decade of conflict and economic upheaval.
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