Syria signs deal with ConocoPhillips to revive natural gas production
The Syrian Petroleum Company has signed an agreement with US-based ConocoPhillips and energy company Novaterra to develop multiple gas fields and boost production from existing sites.
The deal is part of Syria's broader initiatives to attract foreign capital and expertise to support and repair its energy infrastructure.
According to Yousef Qiblawy, President and CEO of the Syrian Petroleum Company (SPC), the deal is a significant step forward for Syria's gas industry and shows that foreign partners are becoming more optimistic about investment prospects in the nation.
“We look forward to increasing production, improving operational efficiency and strengthening the energy system in a way that supports the national economy and helps meet the needs of citizens,” Qiblawy told SANA, Syria’s state news agency.
Syria's long-declining industry gets a boost
Qiblawy said last year that Syria aims to increase gas output by 4-5 million cubic metres per day within a year, according to Reuters.
ConocoPhillips' Chairman and CEO, Ryan Lance, announced that the business has reached a deal to assist Syria's onshore gas resource development, laying the groundwork for the country's natural gas production to be restored and increased, whilst Alex MacDonald, CEO of Novaterra Energy, said the company looks forward to working with its partners and the Syrian government to advance the project.
President Ahmed Al Sharaa hosted talks between the three companies at the Presidential Palace in Damascus on Tuesday, along with Asaad Al Shaibani, the Minister of Foreign Affairs and Expatriates and Mohammad al-Bashir, the Minister of Energy, as Syria sees natural gas as central to developing its power plants and supporting industrial activity.
The deal with ConocoPhillips comes after Al Bashir visited Washington earlier this month, looking to secure deals with the US private sector, reflecting warming relations between the countries.
Growing E&P deals
The Syrian government has signed a slew of oil and gas deals this year, hoping to revive an economy that was marred by years of war and infighting, which were followed by sanctions on the Assad-led government. Last month, Syria signed a memorandum of understanding with ConocoPhillips, TotalEnergies, and QatarEnergy for offshore oil and gas exploration.
Additionally, it struck a preliminary agreement with Qatari company Power International, and US energy giant Chevron for offshore energy exploration in February.
More importantly, Damascus has regained control over the Kurdish region, allowing it to sign a deal with US-based HKN Energy to operate the oil and gas fields in Hasakah. UAE’s Dana Gas is also investing, signing an initial agreement last year with SPC to develop gas fields in central Syria.
Since the Syrian civil war, the country has lost close to 380,000 barrels of oil per day and 900 million cubic feet of gas daily. The new government aims to return to pre-war production levels, targeting one million barrels of oil per day by 2030. SPC has already begun work and has rehabilitated five out of seven oil wells in the Al Bishri field in the country’s central region.
