Syria's Energy Comeback Could Reshape Middle East Oil and Gas

Syria is undergoing countrywide reconstruction after more than a decade of conflict, which caused extensive infrastructure damage and led to millions of people being displaced. As Syrians rebuild their lives, the government has big plans for economic diversification and growth to support long-term recovery. Thanks to its favourable geographic position, this includes the development of a strong energy sector that could help eventually establish Syria as a regional hub.Syria is now led by President Ahmed al-Sharaa, who formed a transitional government on March 29, 2025, following the end of the Assad regime. The government has introduced a wide range of policies and reforms over the past year, across all sectors, aimed at improving living standards and supporting economic growth. The national strategy focuses on institutional reorganisation, security integration, economic stabilisation, and transitional justice ahead of planned national elections in 2030.The transitional government has taken control over Syrian energy, including the Omar oil field and Tabiyeh gas complex. This follows over a decade during which Syria’s energy sector was split, with Damascus situated far from the country’s oil-rich northeast. For years, while the government still oversaw gas output in the country’s central region, it lost control of some of the country’s largest production sites.A 2026 agreement between the transitional government and the Kurdish-led Syrian Democratic Forces (SDF) provides the potential to integrate SDF forces into state structures, which could further unify energy governance. Meanwhile, the lifting of United States and European Union sanctions on Syria, following the fall of the Assad regime, and the relaunch of the SWIFT transfer system have made it easier for international companies to invest in Syria.Before the conflict, which commenced in 2011, Syria was producing an average of 380,000 bpd of crude and 900 million cubic feet of gas. However, the conflict dramatically reduced output, with oil production down 80 per cent and gas by half, according to figures from Wood Mackenzie. Nevertheless, Syria is still home to estimated reserves of 1.3 billion barrels of oil equivalent, in addition to having vast unexplored onshore areas and an entirely untapped offshore sector. Higher levels of foreign investment could support an accelerated recovery in the oil and gas sector.In May, Syria announced that it had an offshore site for its first deep-water oil and gas exploration project to be developed by the U.S. major Chevron, Qatar’s UCC Holding, and the Syrian Petroleum Company (SPC). This supports the government’s aim to attract greater foreign investment in Syria’s energy sector. Other U.S. oil and gas firms have also expressed interest in Syrian oil and gas projects under the transitional government, opening the door to new investment opportunities.There is significant potential for Syria’s energy industry given the current geopolitical challenges to global energy. Iran’s restrictions on energy trade through the Strait of Hormuz have spurred interest in Syria as a potential transit route for pipelines transporting Persian Gulf oil and gas to the Mediterranean. Syria’s border with Turkey offers enhanced access to major pipeline networks, which could facilitate the transport of oil and gas from the Middle East to Europe. With greater investment, Syria could serve as an “energy land bridge” for Hormuz-bypass pipelines, according to the Baker Institute.In addition to redeveloping its oil and gas assets and potentially acting as a regional energy trade hub, the transitional government also has major plans for Syria’s renewable energy sector. Small-scale solar projects have already begun to emerge, with estimates suggesting that the country’s off-grid solar capacity increased from around 250 MW in 2022 to over 2 GW in 2025. Syria is looking to develop both its solar and wind power sectors. In June 2025, the government signed a $7 billion deal with a consortium from Qatar, Turkey, and the United States to rebuild its power sector, including four gas-fired power plants and a 1 GW solar park. The project is expected to add 5 GW of capacity, which will cover almost half of the current electricity demand.The government signed a Joint Development Agreement with the Saudi energy group ACWA Power in September 2025, as they work to identify suitable locations for wind energy projects, aiming to develop 1 GW of solar PV capacity and approximately 1.5 GW of wind power, as well as utility-scale battery storage to enhance reliability.In February, the Syrian Ministry of Energy also signed an agreement with the Dubai-based energy group Marv Energy to develop a 700-MW wind farm with plans to install 140 locally manufactured wind turbines across several sites to connect to the national electricity grid. Marv Energy plans to manufacture the turbines at its factory in the city of Homs in western Syria. It aims to complete the project within five to seven years.In October, the Ministry of Energy issued a request for expressions of interest for the Halabiya-Zalabiya Dam project on the Euphrates River. The project would include the construction of an 81-MW hydropower plant and a 1.2-GW pumped-storage hydropower facility, with an estimated investment cost of $1.16 billion. The project would require the development of a 1,200-metre-long, 23-metre-high dam. Meanwhile, the hydropower plant would have three 27-MW turbines. Syria has significant oil, gas, and renewable energy capacity, but it is highly dependent on foreign investment to support development. Due to ongoing limitations to energy trade via the Strait of Hormuz, several investors are looking to Syria to develop alternative trade routes between the Middle East and Europe, which could support the country’s economic recovery.By Felicity Bradstock for Oilprice.comMore Top Reads From Oilprice.comPetrobras' Deepwater Push Sets Off a Race for Offshore VesselsOil Prices Climb Above $110 as Middle East Supply Fears PersistRussia to Send First Diesel Tanker to U.S. on Thursday