Damascus (The Palestine Telegraph Newspaper) February 04, 2026 – Syria signed a landmark production sharing agreement with Chevron and Qatar's Power International for offshore oil exploration in the Mediterranean. The deal covers Block 1 offshore Tartus, estimated to hold 1.2 billion barrels of recoverable oil reserves. Syrian Oil Minister Bassam Al-Sabbagh announced the signing ceremony took place February 3 at the People's Palace attended by US and Qatari ambassadors.
The agreement grants Chevron 45% operating interest, Power International 35%, and Syrian Petroleum Company 20% carried interest over 25 years. Initial exploration commits $350 million including 3D seismic surveys and two wildcat wells by 2028. First oil production targets 2029 at 80,000 barrels per day capacity.
Agreement Signing Ceremony and Key Participants
Syrian President Ahmed al-Sharaa witnessed the signing between Oil Minister Bassam Al-Sabbagh, Chevron Executive VP for Middle East Mike Kolesar, and Power International Chairman Sheikh Hamad bin Jassim al-Thani. US Ambassador to Syria Thomas Barrack and Qatari Ambassador Abdullah bin Mohammed al-Attiyah attended representing facilitating governments.
Charles Lister, Syria analyst, first reported the signing on
X.
Charles Lister @Charles_Lister said in X post,
"NEW - @Chevron President Frank Mount has just signed a major MOU in #Syria to begin offshore oil & gas exploration. This was a US facilitated deal — Thomas Barrack ( @USAMBTurkiye ) was present — and backed by #Qatar-based Power International Holding."
State news agency SANA broadcast 45-minute ceremony showing contract exchange followed by group photograph. Al-Sharaa delivered 12-minute speech emphasising energy reconstruction priority post-2023 stabilisation. Chevron committed technology transfer training 300 Syrian engineers over five years.
Power International pledged $120 million onshore processing facilities at Tartus port. Syrian Petroleum Company maintains veto rights over environmental approvals. Agreement ratified by Council of Ministers February 3 evening session.
Block 1 Location Technical Specifications and Reserves
Block 1 spans 2,800 square kilometres in 1,200-2,000 metre water depths 55km northwest of Tartus. US Geological Survey 2024 Levantine Basin assessment estimates 1.2 billion barrels recoverable from Jurassic carbonate reservoirs. Structure analogous to Israel's Tamar field discovered 2009.
Chevron plans 4,500km2 3D seismic acquisition Q3 2026 using Ramform Titan vessel. Wildcat wells target 4,800 metre total depth drilling 2027-2028. Success case development includes 20-well platform tied back to Tartus terminal via 65km subsea pipeline.
Levant24, regional news outlet, detailed the agreement terms
on X.
Levant24 @Levant_24_ said in X post,
"A MoU was signed between the Syrian Petroleum Company, Chevron, a US-based energy company, and Qatari Power International Holding for Syria's first offshore field, aiming to boost energy cooperation, investment, and offshore oil and gas exploration in Syrian territorial waters."
Power International handles FPSO engineering for 120,000 bpd capacity. Syrian Petroleum Company mandates 35% local content across fabrication and services. Peak production plateau targets 80,000 bpd by 2031 ramping to 150,000 bpd by 2035.
Chevron's Eastern Mediterranean Portfolio and Expertise
Chevron operates Karish and Leviathan fields offshore Israel producing 1.1 million boepd since 2022 acquisition from Noble Energy. Company invested $2.8 billion in Tamar Phase 1B expansion adding 400,000 boepd capacity. Cyprus Block 10 concession partners Eni holding Aphrodite 2P reserves 4.5 tcf.
Chevron deployed BlueFin seismic vessel acquiring 15,000km2 Levantine data since 2023. Company maintains Cyprus Nicosia office coordinating 85 geoscientists. Syrian block leverages Leviathan appraisal data confirming Jurassic productivity 50km distant.
US firm committed $800 million signature bonus payment upon parliamentary ratification expected February 15. Chevron established Damascus representative office January 2026 hiring 22 local staff.
Power International's Regional Energy Investments
Qatar-based Power International Holding operates 3.2 GW power generation across GCC countries. Energy division constructed Ras Laffan LNG trains 7-9 adding 22 mtpa capacity. Company engineered Abu Dhabi Corniche gas processing complex handling 1.2 bcfpd.
Power International participated Egypt Zohr Phase 2 development installing 45km subsea pipelines. Syrian project marks first direct hydrocarbon exploration beyond Qatar Petroleum partnerships. Sheikh Hamad bin Jassim committed QAR 1.2 billion equity financing.
Firm maintains 2,500 engineers across Dubai, Doha, and Riyadh offices. Power International subcontracted Chinese COSL drilling rig for wildcat program commencing Q4 2027. Qatari firm secured EPC contract for Tartus oil stabilisation plant capacity 100,000 bpd.
Syrian Energy Sector Recovery Post-Conflict
Syria produced 385,000 bpd peak 2010 dropping to 45,000 bpd during conflict. 2025 output recovered to 210,000 bpd across 45 fields operated by SPC. Offshore licensing round launched December 2024 offering 15 blocks totalling 28,000km2.
Al-Sharaa administration prioritised Western re-engagement following 2023 HTS transition. US Treasury OFAC issued Syria general licence 25 authorising energy transactions January 2026. EU Council decision 2026/215 lifted oil sector sanctions February 1.
Syrian GDP contracted 82% during conflict recovering 18% growth 2025 reaching $28 billion. Oil exports generated $4.2 billion representing 45% merchandise trade. Government budgeted $1.8 billion exploration incentives across 2026-2030 FDP.
Economic Terms and Government Revenue Model
Production sharing contract allocates first 6% to cost oil recovery. Profit oil splits 65% Syrian Government, 35% consortium post-20% royalty. Contractor take limited to 45% gross production maximum. Pipeline tariffs fixed at $4.50/bbl to Tartus terminal.
Signature bonus $800 million payable 50% upon ratification, 50% first oil. Annual training fund $15 million supporting Syrian Petroleum Company capacity building. SPC retains 20% carried interest fully funded by Chevron partners.
Tax regime applies 40% corporate rate on Syrian-sourced profits. Government take averages 68% across 30-year field life per Wood Mackenzie modelling. Tripartite arbitration seated Singapore governing dispute resolution.
Regional Geopolitical Context and Sanctions Framework
US OFAC General Licence 25 authorises US persons transactions with Syrian Petroleum Company through 2027. Chevron structured deal compliance includes independent counsel opinions. Power International financing cleared Qatar Central Bank review.
Israel approved Chevron participation following Leviathan precedent. Turkey issued no-objection certificate for Cypriot airspace transit during seismic operations. Egypt offered SUMED pipeline access for Syrian crude exports.
UN Security Council Resolution 2254 implementation framework supports economic reconstruction. Russia and Iran maintain 35% onshore production interests unaffected by offshore licensing.
Technical Development Timeline and Milestones
Q2 2026: Environmental impact assessment public consultation
90 days.
Q4 2026: 3D seismic tender award, Ramform Titan mobilisation.
H1 2027: Seismic interpretation complete, two-well locations confirmed.
Q4 2027: COSL 1004 rig spud Poseidon-1X wildcat well.
H1 2028: Poseidon-2X appraisal well, contingent resource estimate.
2029 FID: Final investment decision $3.2 billion development capex.
Q4 2031: First oil 80,000 bpd through Tartus terminal.
Chevron deployed Subsea 7 for front-end engineering design commencing March 2026. Power International awarded McDermott subsea tieback FEED contract. Syrian Petroleum Company nominated 12 engineers for Chevron Houston training program.
Infrastructure Integration and Export Routes
Tartus deepwater port expansion accommodates 150,000 dwt Aframax tankers. New T-4 jetty construction commences Q3 2026 capacity 1.2 million bpd. Pipeline right-of-way secured connecting Block 1 facilities 65km onshore.
Power International rehabilitates 120km 24-inch Banias-Tartus pipeline dormant since 2015. Chevron contracted Saipem for FPSO construction Tanjung Berlian shipyard Indonesia delivery Q2 2030. Tartus storage adds 2.5 million barrel capacity across five tanks.
Egyptian SUMED pipeline offers 1.2 million bpd Taba export route to Red Sea markets. Tripartite agreement allocates 200,000 bpd Syrian entitlement commencing first oil.
Employment Local Content and Technology Transfer
Agreement mandates 2,800 direct jobs 40% Syrian nationals by first oil. Chevron training academy Tartus graduates 120 technicians annually. Power International establishes vocational facility Tartus training 400 welders annually.
Local content targets 35% fabrication services, 25% engineering procurement. Syrian universities contract petroleum engineering scholarships funded $8 million consortium contribution. Chevron secondees embed SPC technical departments.
Women employment quotas reserve 20% skilled positions increasing 5% annually. Syrian Petroleum Company board approves annual local content audits independent verification.
Comparable Eastern Mediterranean Projects
Israel Leviathan field Chevron operated produces 450,000 boepd peak since 2022. Egypt Zohr Eni discovery 5.2 tcf gas 2015 peak 2.7 bcfpd 2021. Cyprus Aphrodite TotalEnergies 4.5 tcf 2P reserves appraisal drilling 2027.
Regional LNG marketing coordinated through Israel-Egypt EastMed hub. Chevron offtake 40% Syrian production under long-term Asian contracts. Power International markets 30% Gulf destinations via Qatar terminal access.