Syria Signs Deal With U.S. and Qatar to Develop First Offshore Oil and Gas Field

By Blessing Nweke

Syria’s state-owned petroleum company signed a memorandum of understanding Wednesday with the United States and Qatar to develop the country’s first offshore oil and gas field, marking a significant step toward reviving a sector devastated by years of war.

The Syrian Petroleum Company said the agreement with U.S. energy giant Chevron and Qatar-based Power International Holding was signed in Damascus in the presence of U.S. Special Envoy to Syria Tom Barrack. State news agency SANA reported that the deal aims to strengthen strategic partnerships in the energy sector and promote offshore exploration in Syria’s territorial waters.

Under the memorandum, the parties will cooperate on offshore oil and gas exploration and resource development, while also supporting broader investment and modernization efforts across Syria’s energy sector. Officials said the agreement represents Syria’s first formal move into offshore hydrocarbon exploration.

Youssef Kabalawi, chief executive of the Syrian Petroleum Company, called the memorandum “the most important” offshore energy deal in the country’s history. He said preparations for mobilization and drilling are expected to begin before the summer and that it could take up to four years to reach commercially viable gas reserves.

Syria’s oil and gas industry was heavily damaged by nearly 15 years of conflict that killed about half a million people and left large parts of the country in ruins. Before the uprising against President Bashar Assad’s government in March 2011, oil was a cornerstone of the economy. Syria produced roughly 380,000 barrels of oil per day, and exports—mainly to Europe—generated more than $3 billion in 2010, accounting for about a quarter of government revenues.

Last month, Syrian government forces captured large areas of the oil-rich northeast from Kurdish-led fighters, a shift that could enable renewed exploration of some of the country’s biggest fields. Syria’s new authorities, who took power after Assad’s removal in December 2024, are seeking foreign partnerships to rebuild the economy and restore energy production.