Syria’s energy pivot accelerates as Chevron and Dana Gas join Gulf partners to rehabilitate war-torn infrastructure and secure urgent fuel supplies.

WHAT: Dana Gas has signed a landmark agreement to rehabilitate Syria’s war-torn central natural gas fields.

WHY: The administration is actively courting Western and Gulf capital to reverse a catastrophic production collapse.

WHAT NEXT: Immediate energy relief is arriving via Saudi crude grants and an Azeri gas swap deal.

 

The operational landscape of the Syrian energy sector is witnessing its most significant structural shift in over a decade. In a move that signals a cautious but definitive reopening of the nation’s war-decimated hydrocarbon industry, UAE-based Dana Gas has emerged as the primary international developer to formalise a commercial framework with Syria’s new administration.

The agreement is widely viewed by industry observers not merely as a standalone asset play, but as the bellwether for a broader, coordinated effort to capitalise on the easing of sanctions and the stabilisation of the post-transition governance structure.

 

First mover Advantage

The Abu Dhabi-listed firm has signed a Memorandum of Understanding (MoU) with the state-run Syrian Petroleum Co. (SPC). This initial pact establishes a mandate for a comprehensive technical assessment of several existing gas fields located in central Syria. Crucially, the asset perimeter includes the Abu Rabah discovery, historically identified as one of the country’s most significant gas reservoirs.

The structure of the agreement suggests a phased approach to risk management. Should the initial technical evaluation prove positive, Dana Gas is positioned to formulate and propose a full-scale development plan. This step-by-step engagement strategy allows the firm to validate subsurface data before committing significant capital expenditure (CAPEX) to infrastructure development.

This agreement represents the first of its kind since the change in government and the subsequent recalibration of the sanctions regime. Consequently, it is being monitored by global energy desks as a critical test case for foreign direct investment (FDI). If Dana Gas can successfully navigate the early stages of this MoU, it paves the way for further international entry.

Richard Hall, CEO of Dana Gas, was explicit about the strategic rationale behind the move. “The fields identified under this MoU could make a real difference to domestic gas production, strengthening Syria’s energy security and supporting local communities,” Hall said.

Perhaps most telling was Hall’s reference to the company’s operational track record. He specifically highlighted that the company’s “experience... in the Kurdistan Region of Iraq (KRI) was directly transferable to such projects.” For industry analysts, this is a significant statement; it signals a high degree of confidence that the firm possesses the specific technical and diplomatic toolkit required to navigate a complex, post-conflict operational and political landscape similar to that of the KRI.

 

Macro-economic imperative

The commercial urgency driving this deal is rooted in a catastrophic domestic crisis. Syria’s natural gas production – the absolute lifeblood of its national power grid – has suffered a precipitous collapse over the last decade. Output plummeted from a peak of 8.7bn cubic metres (bcm) in 2011 to an estimated 3 bcm in 2023.

This production deficit has forced a crippling reliance on energy imports, draining fiscal reserves and resulting in chronic power shortages that hamper industrial recovery. The Dana Gas deal is, therefore, the most concrete outcome to date of a deliberate strategic pivot engineered by Syria’s new government under President Ahmed al-Sharaa.

The administration is actively engineering a move away from its historic, isolationist alignment with Tehran. Instead, Damascus is aggressively courting Western and Gulf-based capital to finance the rehabilitation of its infrastructure. This diplomatic offensive was further evidenced by the Syrian Energy Minister’s presence at the recent ADIPEC conference. The Minister engaged in strategic discussions with supermajors, including TotalEnergies and Chevron, underscoring a clear intent to re-engage with tier-one global energy firms.

 

Western technical re-engagement

While Dana Gas leads the regional charge, Western technical expertise is also returning to the theatre. Syria’s Ministry of Energy has formalised a significant cooperation agreement with US major ConocoPhillips and Novaterra Energy to jointly develop the natural gas sector.

This MoU covers a dual mandate: the optimisation of existing gas fields and the exploration of new acreage using advanced technical and digital standards. The targets set out in the agreement are ambitious, reflecting the dire need for immediate feedstock. Under the deal, Syria targets a production increase of 4–5mn cubic metres (mcm) per day within a tight 12-month window.

The collaboration is set to bring modern technical expertise back into the Syrian upstream sector, including field rehabilitation, compression upgrades, and enhanced gathering systems. Strengthening these gas assets is viewed as the critical path for boosting electricity generation, given the direct correlation between gas volumes and grid stability.

 

Short-term support

While the Dana Gas and ConocoPhillips initiatives represent medium-to-long-term domestic solutions, the government is simultaneously executing a multilateral deal to address the immediate power deficit.

In a complex commercial arrangement brokered by Turkey, Azerbaijan began supplying natural gas via a swap agreement earlier this year, utilising Turkey’s state-run BOTAŞ transmission system. This deal highlights the new administration’s ability to leverage regional diplomatic channels for energy security.

The arrangement, which is partially financed by Qatar, is already delivering tangible results, with flows of 3.4 mcm per day currently entering the system. Turkey’s Energy Minister, Alparslan Bayraktar, confirmed to Al Haber that the infrastructure allows for scalability, noting that supply could rise to 6 mcm per day. The social impact of this specific supply line is projected to be substantial, potentially restoring 10 hours of daily electricity to five million households.

Despite the momentum, formidable “above-ground” risks remain a critical concern for any potential investor. Reuters highlighted the challenge facing parallel recovery efforts, such as UCC Holding’s $7bn power plant plan.

The agency noted that such capital-intensive projects are highly vulnerable unless Damascus can secure assets against organised looting – a crucial hurdle for all future investment. The security of physical infrastructure remains the variable that will determine the bankability of these MoUs.

 

Supplies to stabilise

Parallel to the upstream gas strategy, the downstream sector has received a vital injection of liquidity through renewed relations with Riyadh.

According to a report by SANA on November 17, a Saudi oil tanker carrying approximately 90,000 tonnes of crude oil arrived at Syria’s Baniyas port. Mazen Alloush, Director of Relations at the General Authority for Land and Maritime Ports, confirmed that the Baniyas port had received the vessel “PETALIDI”, arriving directly from Saudi Arabia.

“Technical teams have begun offloading the cargo in line with safety and environmental standards before transporting it to the refinery,” Alloush said, emphasising the operational readiness of the port facilities. He added that the shipment supports Syria’s ongoing energy requirements and aims to ensure stable supplies of refined petroleum products to the domestic market.

The scale of the commitment was further clarified by Ahmed Qabbahji, Deputy CEO of the Syrian Petroleum Company. Qabbahji said that the shipment represents the first tranche of a Saudi-funded package worth a total of 1.65mn barrels of crude oil. He noted that while this initial delivery amounts to 650,000 barrels, a second shipment of 1mn barrels is scheduled to arrive on November 23.

All volumes are set to be processed at the Baniyas refinery, a critical node in Syria’s fuel supply chain. Abdelhadi Joubaseh, Director of the Baniyas Oil Terminal, confirmed that unloading operations are currently underway and are expected to take 72 hours to complete.

This delivery follows a MoU signed earlier this year between Syria’s Ministry of Energy and the Saudi Fund for Development, under which Riyadh committed to providing Damascus with the 1.65mn barrel grant. This move solidifies the multi-pronged approach of the new administration: securing immediate relief through grants and swaps while laying the groundwork for long-term redevelopment with partners like Dana Gas.