Syria to develop first offshore oil, gas field with US’s Chevron, Qatar’s UCC
In 2013, Russian firm Soyuzneftegaz signed a deal to explore for oil and gas in Syrian waters, but the project was dropped two years later due to the civil war.
Syria’s state-owned Syrian Petroleum Company has signed a memorandum of understanding with US oil major Chevron International and Qatari firm UCC Holding to evaluate oil and gas exploration in Syrian waters, the state-owned Syrian news agency, SANA, reported Wednesday. The deal would mark the country’s first offshore oil and gas development as it seeks to rebuild its energy sector after nearly 14 years of civil war.
What happened: The agreement, signed at the People’s Palace in Damascus, aims to strengthen strategic partnerships in the energy sector, SANA reported.
The memorandum includes cooperation in offshore exploration and the development of oil and gas resources in Syrian waters, as well as broader efforts to support investment and energy sector development.
Why it matters: The project would mark Syria’s first move into offshore oil and gas development. Most of the country’s current production comes from onshore fields in the northeast, including the Omar oil field, its largest.
Syria has previously attempted offshore exploration. In 2013, Russian firm Soyuzneftegaz signed a deal to explore in Syrian waters, but the project was abandoned two years later due to the civil war.
UCC Holding has been a major investor in Syria under the administration of President Ahmed al-Sharaa. The Qatari firm has also been involved in other billion-dollar deals in postwar Syria, including in real estate, electricity and the development of Damascus International Airport.
Before Sharaa assumed power in early 2025 after the toppling of former President Bashar al-Assad in a lightning offensive, Syria was engulfed in a civil war that had been raging since 2011. The conflict began after a violent government crackdown on Arab Spring protests and caused an estimated $216 billion in damage, according to the World Bank.
Energy infrastructure was not spared. Although the country has an estimated 2.5 billion barrels of oil and 8.5 trillion cubic feet of natural gas, only a small fraction is extracted.
Before the civil war erupted, Syria produced around 380,000 barrels of oil and about 25 million cubic meters of gas per day, generating 20% to 25% of state revenue.
By 2015, when much of Syria was controlled by the Islamic State (ISIS), production had plunged to around 40,000 barrels per day, according to S&P Global Commodity Insights. Output fell further after ISIS was defeated by the Kurdish-led Syrian Democratic Forces, with production estimated at between 15,000 and 30,000 bpd in 2019, according to S&P.
Know more: Consultancy firm Wood Mackenzie estimated last month that Syrian oil and gas production would recover this year as the government regains control of key assets, including Deir Ezzor province — home to the Omar oil field and the Tabiyeh gas field — following a withdrawal by the SDF under a 14-point agreement with the Sharaa government.
Since Assad’s fall, several international oil companies have signed agreements to return to Syria. UAE-based Dana Gas signed a memorandum to redevelop key gas fields, followed by memorandums involving ConocoPhillips and Novaterra. Additionally, four Saudi companies — TAQA, ADES, Arabian Drilling, and Arabian Geophysical and Surveying — signed agreements to provide technical support.
