Syria has signed a memorandum of understanding with US oil major Chevron and Qatar-based Power International Holding to develop the country’s first offshore oil and gas field.
State-owned Syrian Petroleum Company signed the agreement to strengthen strategic partnerships in the energy sector, The Associated Press reported, citing Syria’s state news agency, SANA.
The three companies will work together in offshore exploration and development of oil and gas resources in Syria’s territorial waters.
Youssef Qablawi, CEO of the Syrian Petroleum Company, said the deal was one of the most important offshore energy exploration deals in the country’s history. The CEO estimated it could take up to four years to reach the offshore gas reserves.
“Before the summer, God willing, we will start mobilisation and drilling,” Kabalawi said.
The deal could be a windfall to the country’s economy. The oil and gas sectors were heavily impacted by a nearly 15-year conflict that caused widespread death and destruction.
Before the conflict began, Syria produced around 380,000 barrels of oil and about 25 million cubic metres of gas per day, generating more than US$3 billion in 2010.
The country’s oil and gas reserves are still substantial.
In 2015, the Oil & Gas Journal estimated the country’s proven oil reserves at 2.5 billion barrels and its gas reserves at 8.5 trillion cubic feet.
