Syria has awarded US energy company ConocoPhillips and a company linked to Syrian-British billionaire Ayman Al Asfari a deal to develop gasfields in the country, state media reported on Tuesday.
The agreement between the two companies and Syrian Petroleum Company aims “to develop several gasfields and increase production from existing sites”, state news agency Sana said, without providing details.
The deal aims “to increase gas output from targeted fields, modernise operational infrastructure and improve efficiency in line with current industry standards,” it said.
Mr Al Asfari is listed as the director of Novaterra, according to Reuters. He did business in Syria's oil and gas sector under the previous regime, but later supported members of the Syrian opposition. ConocoPhillips also operated in Syria before the civil war.
The deal is in line with Syria's efforts to “attract international expertise and investment”, as there is “growing confidence” in Syria, the report said, quoting SPC chief executive Youssef Qablawi.
“We look forward to increasing production,” he said.
ConocoPhillips, meanwhile, said the deal focuses on onshore gas development and “establishing a framework to develop and explore a portfolio of gas assets”.
The removal of US sanctions on Syria at the end of last year has spurred international interest in the country's energy sector, which was the major source of hard currency for the former regime before the 2011 civil war.
It was toppled in December 2024 by Islamist forces led by current leader Ahmad Al Shara, who quickly became friendly to Washington.
Syria is currently at a stage where it needs rebuilding and restructuring across the board, creating opportunities for investors in several sectors. Gulf states and other regional countries are moving quickly to invest in Syria’s future, launching diplomatic, financial and infrastructure support.
Damascus is looking to revive its energy industry with Gulf assistance. Before the civil war, Syria produced 380,000 barrels of oil per day and 900 million cubic feet of gas daily, making it the Mediterranean's only significant crude producer. Output fell by about 80 per cent during the war.
The Ministry of Energy is seeking more than $30 billion to rehabilitate the oil, gas, electricity and water sectors. Syria received $28 billion in Gulf investment across all sectors last year, after amending its foreign investment law to permit full foreign ownership of projects.
Tuesday's deal is the second in the gas sector to be announced by the new government. In November, UAE-based Dana Gas, which also operates gas blocks in Iraq's Kurdistan region, signed an initial agreement with SPC to explore redevelopment and expansion of gasfields in central Syria.
