Chevron Enters Syria’s with Qatar Co. as Damascus Seeks Postwar
Revival of Oil and Gas
Chevron has signed an initial agreement to
start working in Syria, weeks after the Syrian government seized control of key
oil and gas fields in the north of the country.
·
New Agreement: Chevron signed a memorandum of understanding
with Syria’s state-owned Syrian
Petroleum Company and Qatar’s Power International Holding to explore
development of Syria’s
first offshore oil and gas field.
·
Political Backing: The deal was signed in Damascus and attended by
U.S. special envoy Thomas
J. Barrack Jr., signaling high-level
diplomatic support.
·
Postwar Energy Push: President Ahmed al-Sharaa is
trying to revive Syria’s shattered energy sector after nearly 14 years of civil war.
·
Recent Field Takeovers: The agreement follows
the government’s seizure of key
onshore oil and gas fields in northern Syria from a Kurdish
militia.
·
Strategic Importance: Syrian officials
called the deal the most
important energy agreement since the war.
·
Once an Energy Producer: Before 2011, Syria met
its own energy needs and oil revenues made up about 25% of state income.
·
Sector Devastated: War, Islamic State control of fields, and
international sanctions
crippled production; Syria now faces chronic electricity shortages and blackouts.
·
Earlier U.S. Deals: In November, Syria signed another
agreement with ConocoPhillips
and Novaterra to develop gas fields.
·
Chevron’s Regional Play: Chevron aims to expand
in the eastern
Mediterranean, leveraging operations in Israel, Egypt, and Cyprus
to supply gas to Europe.
·
Al-Omar Field: Recently reclaimed by the government, al-Omar—Syria’s largest
oil field—was previously a joint venture with Shell, which has now sought to withdraw
under sanctions pressure.
·
Bottom Line: Chevron’s move marks a significant
reopening of Syria’s energy sector, blending geopolitics, reconstruction
efforts, and competition for Mediterranean gas resources.
The
American oil giant Chevron signed an initial agreement with Syria’s state-owned
oil company on Wednesday to explore the development of the country’s first offshore
oil and gas field, according to Syrian state media.
The
deal is part of a push by President Ahmed al-Sharaa of Syria to reinvigorate the
country’s energy sector, which was devastated during a nearly 14-year-long civil
war. The agreement comes weeks after the Syrian government seized control of key
onshore oil and gas fields from a Kurdish militia.
Chevron,
the Syrian Petroleum Company, and a Qatari company, Power International Holding,
signed a memorandum of understanding at the presidential palace in Syria’s capital,
Damascus, according to state media.
The
U.S. special envoy for Syria, Thomas J. Barrack Jr, was also present, state media
reports said.
The
deal is “the most important agreement in Syria’s energy sector,” said Youssef Qiblawi,
the director of the Syrian Petroleum Company, according to local media.
Syria
was once a leading oil and natural gas producer in the Mediterranean region, according
to the U.S. Energy Information Administration, or E.I.A.
Before
the outbreak of the civil war in 2011, Syria produced enough oil to cover its own
energy needs and generate around 25 percent of state revenues, according to the
E.I.A.
The
country’s energy sector was decimated by the war and the imposition of global sanctions.
By 2015, the Islamic State group had captured most of the country’s oil and gas
fields.
Today,
Syria produces a fraction of the electricity it needs and has been plagued by frequent
blackouts. In recent months, the government has tried to tap into the country’s
energy reserves to deliver a more reliable power supply.
In
November, the Syrian Petroleum Company signed an agreement with U.S.-based ConocoPhillips,
the American energy company, and Novaterra to develop
Syria’s existing gas fields and explore new ones.
Chevron
has been looking to expand its foothold in the eastern Mediterranean and hopes to
use its presence in Israel, Egypt and Cyprus as a regional springboard to become
a major exporter of gas to Europe.
The
oil and gas fields that the Syrian government seized last month, part of its push
to consolidate its authority across the country, include al-Omar, Syria’s largest
field. They represent the majority of Syria’s oil production and were the main source
of revenue for the Kurdish-led Syrian Democratic Forces.
The
al-Omar field was operated as a joint venture between the Syrian Petroleum Company
and Shell before the civil war. Shell suspended all its activities and the European
Union imposed sanctions on Syria’s oil sector.
Last
month, after the Syrian government seized control of al-Omar, Mr. Qiblawi said that Shell, the British oil giant, had asked to
withdraw from the oil field and transfer its share to Syrian state-owned operators.
“Al-Omar
oil field is one of the most important fields in the region,” Mr. Qiblawi said at a news conference at the time. “It will become
entirely ours, and we will operate it with our own Syrian engineering and technical
staff.”