Syrian President Ahmed al-Sharaa met on Wednesday with representatives from Chevron Worldwide and Qatar’s Power International Holding company.
The goal is 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 SANA, “Sharaa congratulated the Syrian Petroleum Company, Chevron International, and the Power International Holding company on signing a Memorandum of Understanding on the first offshore field project in the Syrian Arab Republic.”
Syria’s Foreign Minister, Asaad al-Shaibani, Energy Minister, Mohammed al-Bashir, and the CEO of the Syrian Petroleum Company, Youssef Qablawi, attended the meeting held at the People’s Palace in Damascus, SANA said.
Sharaa also met with US envoy Tom Barrack. “Sharaa received on Wednesday the US Special Envoy to Syria, Tom Barrack, and an accompanying delegation,” SANA reported. Shaibani was also in attendance at the meeting.
In relation to this sit-down, Barrack wrote on X/Twitter, “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. Syrian people’s unbreakable spirit and vast resources together forge a future of prosperity, inclusion, and renewal.”
Barrack’s statement is important. He did not post about developments in eastern Syria. Instead, he posted about 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.
What do we know about the deal?
This is for the development of the country’s first offshore oil and gas field. This follows Israel’s success in developing several gas fields. A deal between Israel and Lebanon on demarcating the maritime border also enabled Lebanon to consider moving forward with offshore exploration.
Between 2022 and 2023, Lebanon also sought Qatar’s involvement in the exploration. Moreover, Turkey is deeply involved in offshore energy exploration.
In addition, countries such as Cyprus, Greece, Egypt, and Libya have demarcated offshore control lines to delineate fields or blocks for exploration.
Not all countries get along. Turkey, for instance, is generally at odds with Cyprus and Greece. Israel is closer to both these countries. Syria is now a new player in the Eastern Mediterranean as well.
Syrian state media noted that the MoU was “signed by Qablawi... Frank Mount, head of Corporate Business Development at Chevron, and Erik Keskula, CEO of Power International Holding.”
It is the first comprehensive agreement. “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.
SANA 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.”
“Barrack pointed out that America’s greatest global footprint is Chevron, one of its leading companies, alongside Qatar’s UCC, which is partnering with Chevron in a new gas project,” SANA said. “He noted that Syria has indeed transformed after enduring five decades of difficult circumstances, particularly over the past fourteen years.”
Sharaa has also worked with Chevron in the past to discuss work with the Syrian Petroleum Company.
Energy Minister Bashir wrote on X that “we signed a strategic agreement with US-based Chevron and Qatar’s Power International to begin offshore gas exploration for the first time in Syria. Production is expected to commence within a few years, helping meet our natural gas needs.”
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.
Syria seeks cooperation with European countries
These include the Omar and the Conoco gas fields near the Euphrates. The Omar gas field was discovered in 1986 and was previously operated by al-Furat Petroleum Company, a subsidiary of the Syrian Petroleum Company.
In other developments in Syria, the Syrians and Russians have discussed a rail project. This comes after Syria’s president also went to Russia recently.
“[Syria’s] Shaibani and Defense Minister 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 added.
Enab Baladi media reported that “the General Establishment for Railways [in Syria] announced on Monday, January 26, 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.”
The Syrian and French foreign ministers also discussed economic cooperation this week. “Shaibani on Thursday held talks with visiting French Foreign Minister Jean-Noël Barrot... on bilateral relations and political and economic cooperation,” SANA noted.