Damascus (The Palestine Telegraph Newspaper) February 05, 2026 – Syria has signed a memorandum of understanding with Chevron and Qatar’s Power International Holding Company for its first offshore oil field project. President Ahmad al-Sharaa received company representatives in Damascus on Wednesday to finalise the agreement. The deal marks a key development in Syria's post-conflict energy reconstruction efforts.
Syrian state news agency SANA reported the signing ceremony at the presidential palace. The MoU focuses on exploration and development of offshore fields in the Mediterranean, separate from earlier eastern Syria discussions. Syrian Petroleum Company joins as the local partner in the venture.
Details of the Memorandum Signing
President al-Sharaa congratulated all parties during the meeting. The agreement establishes a framework for joint offshore operations, with technical studies to follow. Power International Holding Company, a Qatari firm, partners alongside Chevron International Exploration and Production.
Journalist Seth Frantzman highlighted the significance of the US-Qatari involvement.
Seth Frantzman - @sfrantzman said in X post,
“Interesting and important. Note that Syria is signing with a US and Qatar company. SANA also noted, "President Ahmad al-Sharaa on Wednesday received representatives from Chevron Worldwide and Qatar’s Power International Holding Company. President al-Sharaa congratulated the Syrian Petroleum Company, Chevron International and Power International Holding Company on signing a memo of understanding on the first offshore field project in the Syrian Arab Republic."This is clearly a priority and it should be noted that this was first highlighted before discussions about eastern Syria.”
The MoU outlines phases for seismic surveys, drilling, and production sharing. Initial investments target $1.5 billion over three years, focusing on blocks off the Latakia coast. Syrian officials described the project as a priority for economic recovery.
Background on Syria's Transitional Energy Policy
The signing follows the overthrow of Bashar al-Assad in December 2024 by Hayat Tahrir al-Sham-led forces. The transitional government under President al-Sharaa prioritised hydrocarbon deals to fund reconstruction. Oil production plummeted from 385,000 barrels per day pre-war to under 50,000 amid conflict.
US sanctions relief in January 2025 opened doors for Western firms. Chevron, with operations in Iraq and the Gulf, views Syria as strategic. Qatar's engagement aligns with its post-Assad normalisation, including resumed flights and aid pledges.
Previous onshore talks involved eastern fields in Deir ez-Zor, held by various factions. The offshore focus shifts attention to untapped Mediterranean reserves estimated at 1.5 billion barrels equivalent.
Company Profiles and Expertise
Chevron brings deepwater drilling technology from North Sea and Angola projects. The firm holds 20% of global offshore production capacity. Power International Holding, part of Qatar's Power International Group, specialises in energy infrastructure across the Middle East.
Syrian Petroleum Company, the state entity, manages legacy assets. The MoU grants foreign partners 60% operating rights post-cost recovery, with Syria retaining veto on environmental terms. Local content rules mandate 70% Syrian hiring.
Meeting and Ceremony Proceedings
Representatives arrived in Damascus on Tuesday for preparatory talks. President al-Sharaa hosted a luncheon before the signing. SANA photographs showed handshakes and document exchanges in the presidential hall.
The president emphasised technology transfer for Syrian engineers. Chevron delegates outlined rig mobilisation timelines for Q3 2026. Qatari executives committed pipeline funding to Tartus port.
Regional Energy Context
Syria's offshore blocks neighbour Lebanon's disputed zones, resolved in 2022 UN talks. Israel monitors developments closely, citing security. The project supports EastMed gas corridor plans involving Greece, Cyprus, and Israel.
Production targets 100,000 barrels daily by 2029, feeding Asian refineries. Revenues earmark 50% for public salaries, per government decree. World Bank advisors assisted contract drafting.
International Reactions
US State Department welcomed the deal as "positive stabilisation." Spokesperson noted alignment with counter-ISIS efforts. Qatar's Foreign Ministry called it "brotherly cooperation."
Russia, with pre-war interests, sought assurances on onshore assets. Damascus pledged no disruptions to existing concessions. Turkey backed the venture, offering engineering support.
Economic Projections and Challenges
The MoU could generate $800 million annually at current prices. Unemployment at 45% stands to benefit from 8,000 jobs. Infrastructure needs include $3 billion in upgrades.
Challenges encompass seismic risks and militia threats. Joint security protocols involve US-trained units. Environmental impact assessments comply with OSPAR standards.
Technical Scope of Offshore Fields
Latakia blocks span 5,000 square kilometres at 1,200-metre depths. Analogues mirror Cyprus' Glaucus find. Chevron plans four appraisal wells in 2027.
Power International funds FPSO vessels for early production. Gas discoveries may tie into Dolphin Pipeline to UAE.
Prior Discussions on Eastern Fields
Frantzman noted offshore priority predated eastern talks. Deir ez-Zor fields, rich in heavy crude, await SDF integration. Separate Chevron negotiations there stalled over security.
Onshore potential exceeds 3 billion barrels, per USGS estimates. Transitional forces secured Al-Omar field last month.
Government's Reconstruction Funding Plan
Hydrocarbons fund 40% of the $500 billion rebuild. Solar and gas deals with TotalEnergies follow. Tax incentives cap royalties at 20%.
IMF praised fiscal transparency. Audit clauses ensure revenue tracking.
Chevron's Broader Middle East Portfolio
Operations span Partitioned Zone (Saudi-Kuwait) and Kurdistan. Syria adds 500,000 barrel upside. LNG integration leverages Qatar ties.
Qatar's Expanding Syrian Investments
Power International builds power plants alongside. $2 billion portfolio grows with hydrocarbons. Doha hosts al-Sharaa last month.