Syria Partners with ConocoPhillips and Novaterra Energy to Revitalize Natural Gas Sector

The Syrian Petroleum Company has signed a significant memorandum of understanding with two prominent global energy firms, ConocoPhillips and Novaterra Energy, marking a major step toward revitalizing Syria’s battered natural gas sector. The agreement, announced on Tuesday by the Ministry of Energy through its official Telegram channel, encompasses the development of several existing gas fields and the initiation of exploration programs to discover new reserves, representing one of the most substantial international energy partnerships Syria has secured since the devastating conflict that has plagued the country for over a decade.

The memorandum of understanding comes at a critical juncture for Syria’s energy sector, which has been severely decimated by years of conflict, infrastructure destruction, and the loss of control over key oil and gas fields. The partnership with these international energy companies signals both Syria’s determination to rebuild its energy infrastructure and the willingness of certain global players to engage with Syrian authorities despite the complex political and economic challenges that continue to define the country’s landscape.

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Strategic Objectives and Sector Development

According to the Ministry of Energy’s statement, the agreement is designed to broaden cooperation in the natural gas sector and significantly boost national production levels. The development and exploration programs outlined in the memorandum will be conducted according to the latest technical and technological standards, reflecting a commitment to modern practices that can maximize efficiency and output while supporting the country’s long-term energy security objectives.

The ministry emphasized that implementing cutting-edge technical standards is not merely about production optimization but represents a fundamental component of Syria’s broader strategy to rebuild its energy infrastructure on a more sustainable and technologically advanced foundation. After years of operating with aging equipment, damaged facilities, and limited access to modern technologies due to international sanctions and isolation, the introduction of contemporary exploration and production methodologies could substantially enhance Syria’s ability to extract and process its natural gas resources.

Natural gas has become increasingly important to Syria’s energy mix and economic recovery plans. Unlike oil, which Syria must partially import despite having domestic production, natural gas serves as a crucial fuel for electricity generation, industrial processes, and domestic consumption. Increasing natural gas production can reduce Syria’s dependence on imported energy, conserve foreign currency reserves, and provide more reliable energy supplies to households and industries that have endured years of severe shortages and blackouts.

Context of Syria’s Damaged Energy Infrastructure

The signing of this memorandum occurs against the backdrop of Syria’s efforts to revive an oil and gas sector that suffered catastrophic damage during the prolonged conflict. The Syrian government has been systematically working to rehabilitate the industry, which experienced extensive physical destruction and a precipitous decline in production during the war years. Many key fields went offline as fighting engulfed oil and gas producing regions, while associated infrastructure including pipelines, processing facilities, and export terminals sustained severe damage from military operations, sabotage, and lack of maintenance.

Prior to the conflict that began in 2011, Syria produced approximately 400,000 barrels of oil per day and was self-sufficient in petroleum products, with some surplus available for export. The country also maintained steady natural gas production that met domestic demand and supported the petrochemical industry. However, production collapsed during the conflict, falling to as low as 24,000 barrels per day at certain points, while natural gas output similarly plummeted as fields were damaged, captured by opposition forces, or rendered inaccessible due to security concerns.

The loss of control over significant portions of Syria’s energy-producing regions compounded the production challenges. Key oil fields in eastern Syria fell under the control of various opposition groups and later the Islamic State organization before eventually coming under the administration of Kurdish-led forces backed by the United States. This fragmentation of territorial control meant that even when fields remained physically intact, the Syrian government could not access the resources, creating severe energy shortages and economic hardship in government-controlled areas.

Syria’s natural gas sector specifically faced unique challenges during the conflict. The Arab Gas Pipeline, which once transported Egyptian natural gas through Jordan and Syria to Lebanon and Turkey, ceased operations due to repeated attacks and the broader breakdown of regional energy cooperation. Domestic gas fields that supplied power plants and industries either sustained damage or could not operate safely due to ongoing hostilities. The resulting energy crisis forced Syria to implement severe electricity rationing, with many areas receiving only a few hours of power daily, crippling industrial production and imposing hardship on civilian populations.

International Energy Partnerships and Economic Implications

The memorandum of understanding with ConocoPhillips and Novaterra Energy represents part of the Ministry of Energy’s broader strategy to expand partnerships with international companies and comprehensively improve the production infrastructure of Syria’s oil and gas sectors. The ministry has indicated that this strategic step will contribute to achieving additional economic returns while supporting the country’s recovery and development plans.

Attracting international energy companies to invest in Syria presents significant challenges given the complex political environment, ongoing international sanctions, and security concerns that continue to affect the country. The United States and European Union maintain extensive sanctions regimes targeting Syria’s energy sector among other industries, creating legal and financial risks for companies that engage with Syrian authorities. These sanctions restrict transactions, freeze assets, and prohibit various forms of investment and trade, making it difficult for Syria to access international capital, technology, and expertise necessary for energy sector reconstruction.

The participation of ConocoPhillips, a major American oil and gas corporation, in this memorandum is particularly noteworthy given the extensive US sanctions on Syria. ConocoPhillips ranks among the world’s largest independent exploration and production companies, with global operations spanning multiple continents and expertise in advanced drilling and production technologies. If the company proceeds with active involvement in Syrian gas field development, it would need to navigate complex sanctions compliance issues or could potentially signal changes in how certain international sanctions are applied or enforced.

Novaterra Energy, the other signatory to the agreement, represents another international partner in Syria’s energy sector rehabilitation efforts. While less prominent than ConocoPhillips in global energy markets, the company’s participation in this memorandum indicates that some international firms are willing to engage with Syria’s energy sector despite the various challenges and uncertainties involved.

For Syria, securing partnerships with established international energy companies offers multiple potential benefits beyond just capital investment. These firms bring technical expertise, access to modern exploration and production technologies, management capabilities, and connections to international markets that Syria has largely been cut off from during the conflict years. Technology transfer through such partnerships could help rebuild Syrian technical capacity that eroded during the war as skilled professionals fled the country and existing infrastructure deteriorated without proper maintenance and upgrades.

Natural Gas Development and Exploration Programs

The memorandum specifically addresses both the development of existing gas fields and the exploration for new reserves, representing a two-pronged approach to expanding Syria’s natural gas production. Developing existing fields involves rehabilitating damaged infrastructure, implementing enhanced recovery techniques, drilling additional wells, and upgrading processing facilities to increase output from known reserves. Many of Syria’s existing gas fields have significant remaining potential that has been left untapped due to insufficient investment, technological limitations, and conflict-related disruptions.

Syria’s main natural gas fields are located in several regions, with significant reserves in the central parts of the country near Palmyra and in the eastern regions. The Hayyan gas field, discovered in the 1990s, represents one of Syria’s largest gas reservoirs but has operated well below its potential capacity due to infrastructure limitations and conflict-related damage. Other significant fields including the Jihar and Al-Ward fields have similarly suffered from underinvestment and disruption.

Rehabilitating these fields requires substantial capital investment in drilling equipment, well workover services, gas processing facilities, and pipeline infrastructure. Modern production technologies including horizontal drilling, hydraulic fracturing where geologically appropriate, and advanced reservoir management systems could significantly enhance recovery rates from existing fields. The technical expertise that international partners like ConocoPhillips can provide would be particularly valuable in implementing these advanced production methods.

The exploration component of the agreement addresses the need to identify and develop new gas reserves to ensure long-term energy security. Syria’s geology suggests potential for additional undiscovered natural gas resources, particularly in offshore areas of the Mediterranean and in underexplored onshore basins. Systematic exploration programs using modern seismic surveying, geological analysis, and exploratory drilling could identify new fields that would expand Syria’s reserve base and production capacity over the coming decades.

Offshore exploration in Syria’s Mediterranean waters holds particular promise. The eastern Mediterranean region has emerged as a significant natural gas province in recent years, with major discoveries offshore Israel, Egypt, and Cyprus transforming the regional energy landscape. Syria’s offshore areas remain relatively underexplored compared to neighboring waters, suggesting potential for significant finds if systematic exploration programs are undertaken with modern technologies and adequate investment.

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Technical Standards and Production Methodologies

The Ministry of Energy’s emphasis on implementing the latest technical and technological standards in the development and exploration programs reflects recognition that Syria’s energy sector needs modernization to compete effectively and maximize resource recovery. Years of operating with outdated equipment, limited maintenance, and isolation from technological advances in the global oil and gas industry have left Syria’s energy infrastructure significantly behind international best practices.

Modern natural gas exploration and production technologies have advanced considerably over the past decade. Three-dimensional and four-dimensional seismic imaging provides much more detailed subsurface information than the older two-dimensional seismic surveys, enabling more precise identification of gas-bearing formations and optimal well placement. Horizontal and directional drilling techniques allow access to reserves that would be uneconomical or technically impossible to produce with conventional vertical wells. Advanced reservoir simulation and management systems optimize production strategies to maximize ultimate recovery from fields over their productive lifetimes.

Gas processing and liquefaction technologies have also evolved, enabling more efficient separation of natural gas from associated liquids, removal of impurities, and potentially conversion to liquefied natural gas for export markets. Syria’s existing gas processing infrastructure has suffered from years of deferred maintenance and limited upgrades, resulting in significant inefficiencies and production losses. Implementing modern processing technologies through this partnership could substantially improve the economic value extracted from each unit of gas produced.

Environmental and safety standards represent another area where international partnerships can elevate Syrian practices. The global oil and gas industry has developed increasingly sophisticated approaches to environmental protection, emissions management, and operational safety over recent decades, driven by regulatory requirements, stakeholder pressures, and recognition that sustainable operations require environmental stewardship. Transferring these practices to Syrian operations would not only reduce environmental impacts but could also improve operational efficiency and long-term sustainability of production activities.

Economic Recovery and Development Implications

The Ministry of Energy has positioned this partnership as a key component of Syria’s broader economic recovery and development agenda. After more than a decade of conflict that devastated the economy, destroyed infrastructure, displaced millions of people, and created immense humanitarian needs, Syria faces enormous reconstruction challenges. Revitalizing the energy sector represents a foundational priority because virtually all economic activities depend on reliable, affordable energy supplies.

Increased natural gas production generates multiple economic benefits for Syria. Most directly, it provides fuel for electricity generation, potentially alleviating the severe power shortages that have constrained industrial production, disrupted daily life, and impeded economic recovery. Syrian power plants have struggled to maintain operations due to fuel shortages, forcing extensive electricity rationing that has become a defining feature of life in many parts of the country. Additional natural gas supplies would enable power plants to operate more consistently, expanding electricity availability for households, businesses, and industries.

Industrial sectors that use natural gas as both fuel and feedstock would benefit from increased domestic production. Syria’s petrochemical industry, which manufactures fertilizers, plastics, and other chemical products, requires reliable natural gas supplies as a primary input. Cement factories, steel mills, and other energy-intensive industries similarly depend on affordable energy to remain competitive. Expanded gas production could enable these industries to increase output, creating employment and generating additional economic activity.

Government revenues from natural gas production provide another crucial economic benefit. Even though Syria’s fiscal situation remains dire after years of conflict-related revenue losses and massive reconstruction needs, energy sector earnings represent one of the few potential sources of significant government income. Royalties, taxes, and profit shares from gas production can fund essential government services, infrastructure reconstruction, and social programs necessary for stabilizing the country and supporting recovery.

Reducing energy imports by expanding domestic natural gas production would also conserve scarce foreign currency reserves. Syria has faced severe foreign exchange shortages throughout the conflict, constraining its ability to import essential goods including food, medicine, and fuel. Every unit of natural gas produced domestically substitutes for imported energy that would otherwise need to be purchased with scarce dollars, strengthening Syria’s balance of payments and reducing vulnerability to international price fluctuations and supply disruptions.

Challenges and Implementation Considerations

Despite the optimistic framing of this memorandum of understanding, substantial challenges and uncertainties surround its implementation. The political and security environment in Syria remains fragile and unpredictable, with ongoing tensions, potential for renewed conflict, and the presence of multiple foreign military forces complicating the operating environment for any energy projects. International sanctions, while potentially subject to selective enforcement or exemptions, create legal and financial obstacles that could impede capital flows, technology transfers, and commercial transactions necessary for project development.

The actual terms of the memorandum have not been publicly disclosed in detail, leaving questions about the specific commitments, investment timelines, project milestones, and risk-sharing arrangements between the parties. Memoranda of understanding often represent preliminary agreements in principle that require subsequent detailed negotiations and definitive contracts before actual implementation begins. The progression from a signed memorandum to operational projects producing gas can take years and may ultimately not materialize if obstacles prove insurmountable or if parties cannot reach agreement on commercial terms.

Technical challenges associated with rehabilitating damaged infrastructure and developing new fields in Syria’s current context should not be underestimated. Beyond the direct conflict damage to facilities, years of deferred maintenance, lack of spare parts, and exodus of skilled technical personnel have degraded the human and physical capital necessary for efficient operations. Rebuilding this capacity while implementing new projects simultaneously represents a significant management and technical challenge.

The broader geopolitical context, including Syria’s relationships with regional powers and the positions of major international actors, will significantly influence whether and how this partnership develops. Russia and Iran, which have provided crucial military and economic support to the Syrian government during the conflict, have their own energy sector interests and relationships with Syrian authorities that could affect how international partnerships evolve. The positions of the United States, European Union, and regional powers like Turkey and Saudi Arabia toward Syria’s rehabilitation and international engagement will also shape the practical possibilities for energy sector development.

Regional and International Energy Market Context

Syria’s efforts to revitalize its natural gas sector occur within a regional energy landscape that has undergone significant transformation in recent years. The discovery of massive offshore natural gas fields in the eastern Mediterranean, particularly the Leviathan and Tamar fields offshore Israel and the Zohr field offshore Egypt, has created new regional dynamics around natural gas production, pricing, and trade. These discoveries have transformed Israel and Egypt into significant gas exporters and have stimulated discussion of regional gas cooperation mechanisms and export infrastructure.

The Eastern Mediterranean Gas Forum, established in 2020, brings together countries in the region to coordinate on natural gas development and market integration, though Syria is notably absent from this grouping due to its political isolation. Nevertheless, the broader regional context of abundant gas supplies, developing export infrastructure, and emerging markets creates both opportunities and challenges for Syria’s gas sector ambitions. On one hand, regional market development could potentially provide outlets for Syrian gas if political circumstances change. On the other hand, abundant supplies from neighboring countries could limit the export potential for Syrian gas and constrain prices.

Global natural gas markets have also evolved considerably during Syria’s conflict years. The expansion of liquefied natural gas (LNG) trade has created more globally integrated markets with increased price competition. The shale gas revolution in the United States has transformed global supply dynamics and pricing relationships. Europe’s efforts to reduce dependence on Russian natural gas following geopolitical tensions have reshaped trade flows and created new demand patterns. These global developments affect the broader context in which Syria seeks to develop its gas resources and the potential value of those resources in international markets.

Conclusion and Future Outlook

The memorandum of understanding signed between the Syrian Petroleum Company, ConocoPhillips, and Novaterra Energy represents an ambitious effort to revitalize Syria’s natural gas sector after years of conflict-induced devastation. If successfully implemented, the partnership could significantly boost Syrian gas production, support energy security, generate economic returns, and contribute to broader recovery and development objectives that remain crucial for the country’s future stability and prosperity.

However, translating this preliminary agreement into tangible results will require overcoming substantial obstacles including international sanctions, security concerns, technical challenges, and the broader political uncertainties that continue to characterize Syria’s situation. The path from a signed memorandum to operational gas fields producing substantial volumes of natural gas typically spans years and requires sustained commitment, substantial investment, and favorable operating conditions that are far from guaranteed in Syria’s current context.

The international energy community will watch closely to see whether this partnership actually materializes into active projects and what precedent it might set for other international companies considering engagement with Syria’s energy sector. For the Syrian government and people, the agreement represents hope for energy security improvements that could ease daily hardships and support economic recovery. For the signatory companies, it represents a calculated bet on Syria’s future and their ability to profitably operate in one of the world’s most challenging environments.

The coming months and years will reveal whether this memorandum marks a genuine turning point for Syria’s natural gas sector or joins the long list of ambitious plans that ultimately could not overcome the formidable obstacles facing reconstruction and development in post-conflict Syria. Regardless of the ultimate outcome, the agreement underscores the enduring importance of energy resources in Syria’s recovery prospects and the complex interplay of technical, commercial, political, and geopolitical factors that will shape the country’s energy future.

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By: Montel Kamau

Serrari Financial Analyst

19th November, 2025