Related Articles

• 
  Activity ramps up in Syria’s oil and gas sector

  3 June 2026

  

   

  Foreign interest in Syria’s oil and gas sector is growing as the government moves to revive the industry and elevated global energy prices improve the economics of new developments.

  A series of agreements signed in recent months has attracted some of the world’s largest energy companies, raising expectations that investment and production could accelerate.

  However, despite growing optimism, significant security, financial and regulatory challenges remain, which could constrain the pace of growth for years to come.

  Military control

  Optimism among foreign businesses about potential opportunities in the country was boosted in January this year when Syria’s central government regained control of most of the country’s oil and gas assets.

  On 13 January 2026, the Syrian government launched an offensive against the Kurdish-led Syrian Democratic Forces (SDF) in the territories of the Democratic Autonomous Administration of North and East Syria.

  The offensive was initially focused on eastern Aleppo Governorate, around the towns of Deir Hafer and Maskanah, and was expanded on 17 January to include Raqqa, Deir ez-Zor and Al-Hasakah Governorates.

  The offensive eventually led to Syria’s Omar and Conoco fields being seized, as well as the Tanak, Rmeilan and Suwaydiyah fields.

  The Omar field is Syria’s largest oil field and the Conoco field hosts Syria’s largest gas processing plant, which previously supplied several power stations, including the Jandar plant in Homs, one of the country’s largest.

  Before the outbreak of the Syrian civil war in 2011, this field produced about 10 million cubic metres of natural gas a day.

  On 18 January, an agreement was signed under which Damascus assumed administrative and security control over all major oil and gas assets previously held by the SDF in the northeast of the country.

  Wider market

  The push to take control of the oil and gas assets came ahead of the US and Israel attacking Iran on 28 February, which led to a regional conflict and disrupted shipping through the Strait of Hormuz.

  Disruption in the waterway – which normally transports about 20 million barrels a day (b/d) of oil and refined products, as well as around 20% of the world’s liquefied natural gas – triggered a surge in global energy prices and sent oil companies scrambling to develop resources that did not rely on the strait as an export route.

  Syria is increasingly being viewed as a potential option for major oil and gas development projects due to its significant unrealised reserves and its geographic position across the Mediterranean from consumer markets in Europe.

  Syria’s production currently stands at around 110,000 b/d, down from a peak of 380,000 b/d in 2011, according to a report published by the US-Syria Business Council in April.

  The country’s recoverable oil reserves are estimated at 2.5 billion barrels, and Syria also has significant gas reserves.

  In April, Yousef Qiblawy, chief executive of the state-owned Syria Petroleum Company (SPC), said his organisation aimed to double national production before 2027 and boost output to 800,000 b/d by the end of 2029, not including offshore production.

  He said: “Before the takeover of the northeast, we were producing 10,000-15,000 b/d.

  “Currently, we are producing 100,000 b/d, and the plan now is to double this production number by the end of this year.”

  He also expressed optimism about the outlook for projects in Syria’s portion of the Mediterranean Sea, saying: “New offshore and onshore exploration is also starting … there are 15 or 17 brand new green blocks, untouched in Syria, with huge reservoirs of oil mainly, and some gas.”

  So far, no offshore wells have been drilled in Syrian waters.

  In 2013, Russia’s Soyuzneftegaz signed an offshore exploration agreement with Damascus, but the project was abandoned during the civil war and never progressed to drilling.

  Making deals

  In recent months, a range of significant deals and meetings has raised expectations for the future of Syria’s oil and gas sector.

  On 11 May, SPC announced plans for Syria’s first-ever offshore oil and gas exploration project.

  The deep-water project is being carried out in partnership with US-based Chevron and Qatar’s UCC Holding.

  SPC said that it had, together with Chevron and UCC Holding, defined the boundaries of the offshore block, paving the way for finalising contracts and starting technical operations this year.

  The three companies previously signed a preliminary deal in February to evaluate offshore oil and gas exploration in Syrian waters.

  On 12 May, France’s TotalEnergies, state-owned QatarEnergy and US-based ConocoPhillips signed a memorandum of understanding (MoU) with SPC relating to the exploration of Syria’s offshore Block 3.

  Under the terms of the preliminary deal, the companies will carry out a technical review of the area.

  The agreement also established a framework for technical and commercial discussions related to exploration activities on the block.

  ConocoPhillips also signed another MoU in November last year, along with Houston-headquartered Novaterra Energy, focused on developing several gas fields and launching exploration programmes.

  This MoU included an agreement to rehabilitate the gas plant at the Conoco field in Deir ez-Zor province.

  At the time, Qiblawy said the agreement was expected to boost the country’s gas production by 4-5 million cubic metres a day within a year.

  On 8 May, the Croatian oil company INA and Hungary’s MOL announced that they had held a series of meetings with SPC focused on exploring options to restart INA’s oil and gas operations in Syria.

  They said a joint technical team established by INA and SPC was assessing the feasibility of INA resuming operations on its Syrian concessions by evaluating operational, technical, commercial and regulatory conditions.

  In 2011, oil and gas production at INA’s Syrian concessions had reached 37,300 barrels of oil equivalent a day.

  By the time the company suspended operations in Syria in 2012, it had invested approximately $1.1bn in the country and had built a gas processing plant at the Hayan gas field.

  Resuming activities

  In April, the managing director of London-headquartered  met with Syria’s president, Ahmed Al-Sharaa.

  Gulfsands is the official operator of Syria’s Block 26, but for 15 years after the start of the Syrian civil war, it could not access the asset.

  The company declared force majeure in late 2011 and, until recently, it was under the control of the Kurdish-led SDF.

  In a statement released after the April meeting with Syria’s president, John Bell confirmed that his company had recently regained access to Block 26, which he described as “an important milestone for Gulfsands and for Syria”.

  He added: “This development provides a strong foundation for the recommencement of operations and investment.

  “We are now back on the ground in Syria, working closely with SPC to accelerate towards a full resumption of activities.”

  Bell also said that, as a result of a global drive to diversify away from “traditional choke points like the Strait of Hormuz”, Syria had the potential to become “a new world energy hub”.

  In April, Saudi Arabia’s ADES Holding Company signed an implementation contract with SPC to develop several gas fields in Syria.

  In a statement, SPC said the scope of the deal with ADES included executing maintenance and development works on existing wells, in addition to drilling new exploratory wells within the agreed operational areas.

  It added that it expected the deal to increase gas production by 25% within the first six months and by 50% by the end of this year.

  Industry insiders are also watching US-based HKN Energy, which has close ties to the Trump administration, after Qiblawy said in January that the company had expressed interest in entering the Syrian oil and gas sector.

  In April, a statement from the US-Syria Business Council said an MoU with HKN was “in the pipeline”.

  Over recent months, expectations have been building about a potential deal involving US-based oil and gas companies Baker Hughes, Hunt Energy and Argent LNG.

  In July last year, Jonathan Bass, chief executive of Argent LNG, said that the three companies were planning to develop a masterplan for Syria’s oil, gas and power sector.

  It was later reported, in February this year, that the three US-based companies were planning to form a consortium for oil and gas exploration and energy production in northeast Syria.

  The consortium is expected to become involved in approximately four to five exploration blocks.

  Commenting on his company’s plans in Syria, Argent LNG’s chief executive said: “We're very excited to be realising the visions of US President Donald Trump and Syrian President Ahmed Al-Sharaa, bringing the country forward from darkness to light.”

  In a separate statement in April, Hunter Hunt, chief executive and chairman of Hunt Oil Company, said: “President Sharaa’s vision is bold, it is comprehensive, and it is full of execution and getting things done … We like what we see on a forward-looking basis.”

  Challenges remain

  While SPC’s Qiblawy has outlined ambitious targets to increase oil and gas production and international interest in the sector is growing, significant obstacles remain.

  A report published by the US-Syria Business Council in April highlighted several risks facing prospective projects. Among the most significant is the threat posed by Islamic State, particularly to pipeline infrastructure crossing remote desert regions.

  The report warned that securing large stretches of sparsely populated territory remains difficult, increasing the risk of attacks on critical energy infrastructure.

  It also highlighted the possibility of renewed conflict in northeastern Syria, where the SDF previously controlled many of the country’s most important oil and gas assets. According to the report, the current ceasefire remains fragile and any deterioration in relations could reignite territorial disputes.

  Beyond security concerns, international investors continue to face substantial financial and regulatory hurdles.

  Although sanctions on Syria have been eased considerably, the country remains designated by the US as a State Sponsor of Terrorism. As a result, licences are still required for many controlled exports, including oilfield equipment, software and technology.

  Restrictions also remain on support from international financial institutions. The US Export-Import Bank and the US International Development Finance Corporation continue to face limitations on their ability to support projects in Syria, constraining access to capital for large-scale developments.

  These factors suggest that progress towards SPC’s production targets is likely to be slower than official projections imply.

  Nevertheless, if Syria can continue to improve security conditions, strengthen political stability and maintain a supportive investment environment, the country’s oil and gas sector has the potential to deliver steady production growth over the coming years.

  For international energy companies seeking opportunities outside traditional export routes and geopolitical chokepoints, Syria is increasingly emerging as a market with significant long-term potential, albeit one accompanied by substantial risk.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17088770/main.png

  Wil Crisp
• 
  Aramco and Emerson partner for corrosion management

  3 June 2026

  Saudi Aramco has entered into a partnership with US-based industrial automation provider Emerson to jointly develop corrosion management systems.

  As part of the corrosion research and development collaboration, Aramco will “combine its expertise and intellectual property with Emerson’s advanced corrosion solutions to digitalise and transform corrosion management”, Emerson said in a statement.

  For Aramco, corrosion management is a strategic priority that is closely linked to operational performance, safety and environmental stewardship. Continuous corrosion monitoring can replace labour-intensive and potentially hazardous manual inspections while providing a reliable stream of digital data to support decision-making and asset integrity management.

  The collaboration builds on the companies’ existing relationship. In May, Emerson announced the deployment of an artificial intelligence-driven optimisation system for Aramco.

  The current phase of that initiative focuses on expanding a hybrid modelling approach for hydrocracker units across Aramco’s operations. The expansion is expected to improve model accuracy while demonstrating the scalability and robustness of the AI-driven optimisation strategy across the company’s asset base.

  Emerson has steadily expanded its presence in Saudi Arabia over the past 16 years. Key milestones include the opening of facilities in Jubail, Dammam and Dhahran, as well as the launch of a manufacturing hub at King Salman Energy Park (Spark) in 2024.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17091834/main4428.jpg

  Indrajit Sen
• 
  Syria to tender gas plant contract

  3 June 2026

  

   

  Syria is preparing to tender a project to rehabilitate the Conoco gas plant in Deir ez-Zor province in the east of the country within the next 10 weeks, according to a document published by the US-Syria Business Council.

  The gas plant was reclaimed by Syria’s military during an offensive in January this year.

  It is Syria’s largest gas plant, but is severely damaged and cannot be operated in its current condition.

  Before the country’s civil war, it processed 13 million cubic metres of gas a day.

  The US-based companies ConocoPhillips and Novaterra signed a memorandum of understanding with the state-owned Syria Petroleum Company (SPC) to restore the facility in November last year.

  Syria is currently in the midst of a push to ramp up oil and gas production and establish itself as a regional energy hub.

  Earlier this year, Yousef Qiblawy, chief executive of SPC, said that his organisation was aiming to double national oil production before 2027 and boost output to 800,000 barrels a day by the end of 2029, not including offshore production.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17088320/main.jpg

  Wil Crisp
• 
  Chinese firm breaks ground on $1.1bn Oman battery plant

  3 June 2026

  Chinese battery materials manufacturer Hunan Zhongke Electric Company has broken ground on an estimated $1.1bn project to establish Oman’s first lithium-ion battery anode materials plant at Sohar Port and Freezone.

  The complex will have a total production capacity of 200,000 tonnes a year (t/y) of anode materials, a key component in batteries used by the electric vehicle (EV) industry.

  The project will be developed in two phases over six years, with each phase delivering 100,000 t/y of production capacity, according to Hunan Zhongke Electric.

  China National Chemical Engineering Group Corporation (CNCEC) is carrying out the main engineering, procurement and construction (EPC) works.

  Construction of the first phase began on 8 May and commercial operations are expected to start in 2027.

  Hunan Zhongke Electric is investing in the project through its wholly owned subsidiary, Zhongke Shinzoom Holdings (Hong Kong), which operates under the holding company Hunan Zhongke Shinzoom Graphite Company.

  Another China-based battery manufacturer, JA Solar OM, signed a land lease agreement with Sohar Port and Freezone in May last year to build a manufacturing facility that will produce solar cells and modules.

  JA Solar OM plans to invest $565m in the project, which will be located in the second phase of Sohar Port and Freezone and occupy a 32.5-hectare site.

  The plant will have a production capacity of 6GW of solar cells and 3GW of solar modules, with operations expected to commence this year.

  ALSO READ: India’s Jindal Steel to build $390m facility in Oman

  Sohar Port and Freezone is the largest industrial free zone in the sultanate. The company has leased about 85% of the first phase of the free zone area.

  The second phase of Sohar Port and Freezone spans 675 hectares.

  Separately, Sohar Port and Freezone will also house the upcoming Marsa liquefied natural gas (LNG) bunkering and export terminal. France’s TotalEnergies and OQ Exploration & Production (OQEP), a subsidiary of Omani state energy conglomerate OQ Group, broke ground on the project on 1 May, 2025.

  TotalEnergies is the majority stakeholder in the Marsa LNG project, holding an 80% interest, with OQ Group, through OQEP, holding the remaining 20% stake. The estimated $1.6bn LNG project will have a production capacity of 1 million tonnes a year (t/y). Paris-based Technip Energies is performing the main EPC works on the project.

  As the host of the Marsa LNG terminal project, Sohar Port and Freezone has awarded three contracts covering infrastructure and other services related to the project.

  WSP International’s Oman branch was awarded a consultancy services contract to provide project management, back-office support, design review, site supervision and contract management services, with the contract running from November 2024 to November 2028.

  The second contract was signed with the Netherlands-headquartered Boskalis International’s Oman branch for dredging works. The work involves removing approximately 3.8 million cubic metres of material to develop the access channel, berth pocket and turning circle, with completion expected in September.

  Sohar Port and Freezone announced the completion of dredging works on the Marsa LNG project in April.

  The third contract was awarded to Six Construct’s Oman branch, covering the construction of the LNG jetty, shore protection and drainage systems, with a duration of 16 months.

  Separately, Technip Energies, in its capacity as the main EPC contractor, has awarded a number of sub-contracts on the project.

  China National Chemical Construction Corporation (CNCCC) won a sub-contract to perform general civil construction works. Omani firm Sarooj Construction Company won a sub-contract for temporary construction facilities at the project site, while locally based Industrial Technology Services (Intecs) was selected by Technip Energies to perform civil works and construct utility buildings.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17076224/main4522.jpg

  Indrajit Sen
• 
  Doosan confirms Saudi Jafurah 2 cogen contract

  2 June 2026

  South Korea’s Doosan Enerbility has confirmed it has signed an engineering, procurement and construction (EPC) contract worth about $556m for the second phase of the Jafurah combined heat and power (CHP) plant in Saudi Arabia.

  The project is being developed by Korea Electric Power Corporation (Kepco) in partnership with Saudi Aramco.

  Doosan said the contract covers design, equipment supply, installation, construction and commissioning of the facility.

  The Jafurah CHP phase 2 project will be built near the Jafurah gas field, about 400 kilometres east of Riyadh. Once operational, it will generate 330MW of electricity and produce 465 tonnes of steam an hour for the nearby gas field.

  According to the firm, the project’s main steam turbine will be supplied by Doosan Skoda Power, a subsidiary of Doosan Enerbility.

  WSP is acting as the project management consultant for the project, which is scheduled for completion in 2029.

  The Jafurah gas development is part of Aramco’s $3.2bn unconventional resources programme, which aims to develop shale gas in three areas. Jafurah lies southeast of Ghawar, the world’s largest conventional oil field.

  The programme is part of Riyadh’s plans under Vision 20230 to ensure the kingdom remains self-sufficient in gas supply amid rising demand from the residential and industrial power sectors.

  Jafurah phase one

  In February 2025, MEED exclusively reported that talks were under way to expand the capacity of the $500m Jafurah cogeneration independent steam and power plant (ISPP).

  Construction works were completed on the facility last November.

  At the time of its procurement, the plant’s first phase was to have a power capacity of 270-320MW, and a low-pressure (LP) steam demand of 77-166 thousand pounds an hour (klb/hr) and high-pressure (HP) steam demand of 29-126 klb/hour by 2023.

  The LP and HP steam demand will increase to 283-373 klb/hr and 66-321 klb/hr by 2027, respectively.

  The oil giant issued the letter of award to Kepco for the contract to develop the Jafurah ISPP scheme in July 2022.

  Kepco subsequently awarded South Korea’s Doosan Heavy Industries & Construction the project’s EPC contract.

  US/India-based Synergy Consulting provided financial advisory services to Kepco on its bid.

  Sumitomo Mitsui Banking Corporation (SMBC) served as the client’s financial adviser for the project. Germany’s Fichtner Consulting Engineers is technical consultant, while the UK’s Wood Group is project management consultant.

  https://image.digitalinsightresearch.in/uploads/NewsArticle/17072199/main.jpg

  Mark Dowdall