Syrian Petroleum Company Signs Gas Development Contract with Two American companies

Contract Details and Signing Process

The Syrian Petroleum Company (SPC) signed a contract on Tuesday with US energy companies ConocoPhillips and Novaterra Energy to develop a number of gas fields across Syria and increase output from existing production sites. The agreement was concluded at the Ministry of Energy headquarters in Damascus, in the presence of senior representatives from all three parties.

The contract follows a structured negotiation process that began with a memorandum of understanding signed in November, and progressed through multiple rounds of technical, legal, and commercial discussions before the final terms were agreed upon.

Project Objectives and Operational Scope

Syria's Ministry of Energy stated that the project is designed to raise gas output from targeted fields, modernize operational infrastructure, and improve efficiency in line with current industry standards. The initiative also forms part of broader efforts to attract international expertise and investment to support the rebuilding and development of Syria's energy infrastructure.

Syria's gas production has fallen by two-thirds from its pre-2011 level of approximately 30 million cubic meters per day, while the country requires an estimated 18 million cubic meters daily to meet electricity grid demand. The new contract is expected to add between 4 and 5 million cubic meters per day within the first year of operations.

Statements from Senior Officials

Youssef Qablawi, Chief Executive Officer of the Syrian Petroleum Company, described the signing as a pivotal step in the development of Syria's gas sector, noting that it reflects growing confidence among international partners in the investment potential of the country's energy industry. He added that the partnership aims to improve operational efficiency and deliver tangible benefits for the national economy and Syrian citizens.

Ryan Lance, Chairman and CEO of ConocoPhillips, stated that the agreement establishes a framework for restoring and expanding onshore natural gas production in Syria. Alex MacDonald, CEO of Novaterra Energy, expressed his commitment to working alongside the Syrian government and partners to ensure the project's success.

A Broader Wave of International Energy Investment

This contract is part of a growing wave of international interest in Syria's energy sector, driven by improved Syrian-American relations and the lifting of sanctions that had been imposed during the era of the former regime. Several major companies have recently entered the market:

• US firm HKN Energy has begun developing the Rmeilan oil fields in Hasakah under a 25-year upstream contract.
• In May, TotalEnergies, QatarEnergy, and ConocoPhillips signed a memorandum of understanding with SPC for offshore exploration in Block 3 in the eastern Mediterranean.
• In April, SPC signed a gas field development contract with Saudi Arabia's ADES Holding Company.
• In February, Damascus signed a preliminary offshore exploration agreement with Chevron and Qatar's Power International.

Expected Impact on Syria's Electricity Supply

Syria has long suffered from severe electricity shortages, though recent improvements have seen daily availability rise from roughly two hours to approximately 13 hours. The new gas development agreement is expected to meaningfully expand fuel supplies to the electricity sector and other vital industries, contributing to the broader effort of rebuilding Syria's energy infrastructure and improving living conditions for its population.