Syrian President Ahmed al-Sharaa met on Wednesday with representatives from Chevron Worldwide and Qatar’s Power International Holding Company. The goal was to move forward with a memorandum of understanding to develop an offshore oil and gas field.
This could be a major game-changer for Syria as it begins to regrow its economy after decades of sanctions and isolation.
According to Syrian state media, “President al-Sharaa congratulated the Syrian Petroleum Company, Chevron International and Power International Holding Company on signing a memo of understanding on the first offshore field project in the Syrian Arab Republic.”
The Syrian leader said he hoped the project “would contribute to the energy sector and economic development.”
Sharaa has worked with Chevron in the past to discuss work with the Syrian Petroleum Company (SPC).
Syria’s Foreign Minister, Asaad Hassan al-Shaibani, Energy Minister Mohammad al-Bashir, and the CEO of the Syrian Petroleum Company Youssef al-Qablawi, attended the meeting held at the People’s Palace in Damascus, SANA said.
Syria’s president also met with US Envoy Tom Barrack, SANA added. Assad Hassan al-Shaibani also attended the meeting.
“Honored to witness Syria’s historic milestone for offshore gas exploration: Syrian Petroleum Company signs first offshore exploration MoU with Chevron and Power International Holding." Barrack wrote on X/Twitter about the meeting. "Syrian people’s unbreakable spirit and vast resources together forge a future of prosperity, inclusion, and renewal.”
Barrack’s statement is important. He didn’t post about developments in eastern Syria, but rather the energy deal. This shows how much the top US envoy in the region cares about this and also how much the US administration wants to see Syria succeed.
First deal for Syria's offshore oil and gas field
The deal is for the development of the country’s first offshore oil and gas field, following Israel’s success in developing a number of gas fields. A deal between Israel and Lebanon over demarcating the maritime border also enabled Lebanon to consider moving forward with exploring offshore as well.
Back in 2022-2023, Lebanon also wanted the Qataris to be involved in the exploration. Turkey as well is deeply involved in off-shore search for energy. In addition, other countries such as Cyprus, Greece, Egypt, and Libya have worked to demarcate lines of control offshore to demarcate various fields or blocks for exploration.
Not all the countries get along. Turkey, for instance, is generally at odds with Cyprus and Greece. Israel is close to Cyprus and Greece in relations. Syria is now a new player in the Eastern Mediterranean.
Syrian state media notes that the MOU was signed by Qablawi, Frank Mount, head of Corporate Business Development at Chevron, and Erik Keskula, CEO of Power International Holding.
“A dedicated team has been assigned to support the agreement and transform it into an executive contract, while also developing engineering and technical expertise in offshore exploration. This will contribute to boosting oil and gas production,” Qablawi said.
Syrian state media noted that Mount described the agreement as the beginning of a new era of prosperity in Syria. “Chevron’s vision is to be the preferred partner worldwide. We have extensive experience in diverse environments that create opportunities in the energy sector, improving lives in the countries where we operate. We hope the same will be true in Syria.” Mount added, according to SANA.
SANA also noted that “Barrack pointed out that America’s greatest global footprint is Chevron, one of its leading companies, alongside Qatar’s UCC." He also acknowledged Syria's transformation after enduring difficult circumstances for decades.
Al-Bashir wrote on X/Twitter that production based on the deal was expected to begin sometime within the next few years.
Syria has other oil infrastructure that needs investment. Much of this is in eastern Syria, and Syria’s government recently wrested control of these fields from the Syrian Democratic Forces. These include Omar and the Conoco gas field near the Euphrates. The Omar gas field was discovered in 1986, and was previously operated by the Al-Furat Petroleum Company, which is a part of the Syrian Petroleum Company.
Syria seeks cooperation with European countries
Syria is also looking to pursue a rail project with Russia, after Syria’s President went to Russia recently.
“Minister of Foreign Affairs and Expatriates Asaad Hassan al-Shaibani and Minister of Defense Maj. Gen. Murhaf Abu Qasra on Wednesday met a senior Russian delegation in Damascus to discuss issues of mutual interest, including the Russian military presence and prospects for defense cooperation,” SANA stated.
Enab Baladi media reported that “the General Establishment for Railways [in Syria] announced on Monday, 26 January, the launch of the first grain freight train on the Latakia–Aleppo line, passing through Homs and Hama, after a suspension of nearly 15 years.”
“Syrian Foreign Minister Asaad Hassan al-Shaibani on Thursday held talks with visiting French Foreign Minister Jean-Noël Barrot at Tishreen Palace in Damascus on bilateral relations and political and economic cooperation,” SANA also noted.