ConocoPhillips is preparing to sign a gas development agreement with Syria’s state gas company as early as this week, according to sources cited by the Financial Times. The deal would make Conoco the first major U.S. energy firm to enter Syria’s post-war energy sector.
The arrangement involves a partnership with Novaterra Energy, an entity formed specifically to restore Syria’s domestic gas production. The two companies plan to develop existing fields and explore for new reserves, aiming to boost output for the country’s strained power grid.
Syria’s gas infrastructure has been devastated by more than a decade of conflict, with production declining sharply and chronic electricity shortages crippling the economy. Any revival hinges on significant capital and technical expertise to repair damaged wells and pipelines.
The geopolitical stakes are high: the U.S. maintains sanctions against the Syrian government, and a Conoco deal would signal a potential shift in Western energy engagement. Critics argue that any investment risks legitimizing the Assad regime without clear humanitarian safeguards.
If completed, the project could also reshape regional gas dynamics, potentially competing with Iranian and Russian energy influence in Syria. However, the security environment remains volatile, and long-term viability is uncertain.