Damascus’ entrance into the energy market will require it to update its dilapidated infrastructure.

Damascus witnessed the signing of a memorandum of understanding between Chevron and the Qatar-based company Power International Holding on February 4. The goal of the new agreement is to push forward with the “development of the country’s first offshore oil and gas field,” Syrian state media SANA said. US special envoy to Syria Tom Barrack wrote that he was “honored to witness Syria’s historic milestone for offshore gas exploration.”

Syria is seeking investment as the country benefits from sanctions relief and Damascus works to unify the country. For instance, forces of the Syrian Interior Ministry were deployed to areas in eastern Syria during the first week of February after an agreement on January 30 between Damascus and the US-backed Syrian Democratic Forces. This means that Syria’s government now controls most of the country. This is a major change from a year and a half ago, when the Assad regime was in charge, and the country was divided. It’s also a major change from more than a decade of civil war that began in 2011.

The new Syrian transitional government has sought to focus its efforts on economic development. Achieving sanctions relief from the United States and the West was a major effort. Another has been outreach to Turkey, Saudi Arabia, Qatar, and other countries. Damascus has also sought to maintain amicable ties with Moscow. Russia was a key patron of the Assad regime. Moscow has pivoted to welcome Syria’s new president, Ahmed al-Shara.

Developing positive ties with the United States, Europe, Russia, and its neighbors helps Damascus sell itself as a safe place for investment. Chevron’s exploration deal with a Qatar-based company is key. “The agreement aims to invest in exploration and drilling within Syrian territorial waters, strengthen strategic energy partnerships, and support development pathways. The signing ceremony took place at the People’s Palace in Damascus,” according to Syrian state media. 

The development is being watched in the region. The agreement in Damascus was signed by Yusuf Qablawi, the CEO of the Syrian Petroleum Company, Erik Keskula, the CEO of Power International Holding, and Frank Mount, the current president of Chevron’s Corporate Business Development.

The offshore agreement also comes as Syria has secured gas and oil infrastructure in eastern Syria. These sites along the Euphrates will also be important for Damascus’s infrastructure development. For Syria’s existing energy infrastructure, what matters is for the central government to secure the infrastructure after many years of neglect. For prospective offshore projects, the major issue will be building new infrastructure. Success in this endeavor, as indicated in Qablawi’s statement, could position Syria as an energy player in the Eastern Mediterranean. Damascus aims to become an exporter and achieve a “gas surplus that benefits citizens and strengthens the national economy.”

The Eastern Mediterranean is already a complex region for energy exploration and production. For instance, in December, Israel agreed to a $35 billion mega-gas export deal with Egypt. Israeli prime minister Benjamin Netanyahu also met with the President of Cyprus, Nikos Christodoulides, and the prime minister of Greece, Kyriakos Mitsotakis, in December 2025. Israel-Greece-Cyprus ties, which also include potential energy agreements, are viewed by some as a challenge to Turkey’s role in the region. 

This means that Syria is entering an already well-trodden playing field. It could lead to peaceful agreements, but it could also lead to competition. Israel-Syria tensions, for instance, have persisted throughout the last year, with Israel carrying out airstrikes on Syria and also military raids along the border.

For the United States, the new developments in Syria are positive. Barrack is not only the US envoy to Syria, but also the ambassador to Turkey, a critical supporter of the new Syrian government. Therefore, there is a natural synergy in Washington’s support for Damascus and America’s alliance with Turkey. At the same time, US ties have been tested by clashes between Syria’s government forces and those of the US-backed SDF in January. A January 30 agreement appears to pave the way to integrate the SDF into a unified Syria. 

However, much work remains. Bringing investment to eastern Syria through reconstruction and by opening the border and trade will be important. Many areas controlled by the SDF experienced economic isolation over the last decade due to the civil war and desperately need investment and infrastructure support. Basic necessities, such as water and electricity, are sometimes missing in cities like Kobane. Oil and gas development could help improve conditions for people throughout Syria, particularly in long-neglected areas.

About the Author: Seth Frantzman

Seth Frantzman is the author of Drone Wars: Pioneers, Killing Machine, Artificial Intelligence and the Battle for the Future(Bombardier 2021) and an adjunct fellow at The Foundation for Defense of Democracies. He is the acting news editor and senior Middle East correspondent and analyst at The Jerusalem Post. Seth has researched and covered conflict and developments in the Middle East since 2005 with a focus on the war on ISIS, Iranian proxies, and Israeli defense policy. He covers Israeli defense industry developments for Breaking Defenseand previously was Defense News’ correspondent in Israel. Follow him on X:@sfrantzman.

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