DAMASCUS - Syria’s state-owned oil and gas company, Syrian Petroleum Company (SPC), has signed strategic agreements with four Saudi companies operating in the oil and gas sector, in a move that brings the Syrian energy issue back into the spotlight after years of deterioration and disrepair.
Representatives from both the Syrian government and the four Saudi companies announced the strategic initiative at the Ministry of Energy in Damascus as part of efforts to rehabilitate and operate Syrian oil and gas fields, and to improve technical and production services.
The Saudi companies that signed agreements were: ADES Holding (Advanced Energy Systems), TAQA (Industrialization & Energy Services Company), ARGAS (Arabian Geophysical and Surveying Company), and Arabian Drilling Company.
SPC’s chairman, Youssef Qablawi, told The Media Line that the agreement with ADES Holding aims to increase gas production from existing fields by 25% over the next six months, with the possibility of reaching a 50% increase by the end of 2026.
He noted that the agreements include full technical services, including drilling and well maintenance, infrastructure, field development, geophysical surveys (for exploration or reserve reassessment), and technical and operational support.
Before the Syrian civil war, which began in 2011, Syria was a productive and stable country in the energy sector, which was severely weakened by the war. According to an analysis by Argus Media, crude oil production fell from about 400,000 barrels per day before 2011 to 90–120,000 barrels per day currently, and natural gas production dropped from about 8.7 billion cubic meters annually to about 3 billion cubic meters in 2023.
In terms of electricity, the generation capacity before the war was approximately 9.5 gigawatts, whereas today it does not exceed 1.6 gigawatts, due to the destruction of plants, distribution stations, and transmission lines.
The authorities in Syria indicate that the rehabilitation of the oil, gas, electricity, water, and mining sectors requires investments estimated at tens of billions of dollars. Against this background, in 2025, the Syrian minister of energy announced the restructuring of the energy sector and the launch of holding companies to manage oil and electricity operations, in an effort to restore damaged infrastructure to operation.
Accordingly, the current agreements with Saudi Arabia are part of a broader plan to reconstruct and redefine the energy sector's role in Syria.
Agreements with Saudi companies will see development of Syrian oil and gas fields
A government source told The Media Line that “the agreements include technical support services and the development of oil and gas fields” within the framework of “a comprehensive plan to modernize the Syrian energy sector.”
From the government’s perspective, this development is part of a strategic plan to rebuild destroyed energy infrastructure, reconstructing the sector through strategic partnerships with local and regional specialized companies.
Experts indicate that what Syria is witnessing now, with the signing of energy agreements, is an attempt to reintegrate it into the regional energy market after years of decline, but warn that the challenge is significant. Reconstruction requires massive investments in infrastructure and the repair of distribution networks, while ensuring regulatory and technical stability.
Currently, most electricity plants operate for only a few hours daily, and oil and gas production has suffered a significant decline, meaning that any improvement requires tremendous effort, built on embracing a clear roadmap and precise technical and operational supervision.
In this context, Abdulrahman Hassan, an energy expert, told The Media Line that the newly signed agreements are an opportunity to combine foreign expertise and local staff to operate fields, rehabilitate wells, and utilize remaining reserves effectively. If the project is managed well, Syria could transform from an energy-importing country into a producer—and possibly an exporter—in the near future.
Success depends on guarantees of transparency, practical training for Syrian competencies, and the use of modern technology. Achieving the declared objectives (increased production, upgraded operating fields, jobs created) could positively affect electricity, industry, and services, and help drive reconstruction forward.
Syria needs modern infrastructure and energy, renewed well drilling, the rehabilitation of processing plants, and updated transmission and distribution lines. It also requires advanced operational and production technologies, such as drilling tools, and modern analysis and maintenance equipment capable of operating efficiently even in deteriorated fields.
The rehabilitation of the Syrian energy sector requires substantial financial investment to cover drilling, plant equipment, infrastructure, transportation, and distribution costs, as well as additional investment in human resources to train technical and engineering staff capable of managing drilling, production, and maintenance operations.
A clear regulatory, legal, and administrative framework is also necessary, transparent, and free of corruption, to ensure that the investment achieves the declared results and serves the public interest. All of this must be supported by political and security stability since implementing projects in an unstable environment exposes them to significant risks.
Experts in the sector anticipate that these first deals will translate into real growth in Syria’s oil and gas output, which in turn should help supply power generation, support industrial activity, and strengthen basic public services for the population. Additionally, direct and indirect job creation, including for sector professionals, maintenance workers, and support services, is projected to support and grow the local economy. The agreements are expected to create approximately 2,000 jobs for Syrians, including technical and engineering roles.
Furthermore, the expected reduced dependence on energy imports will alleviate budgetary and balance-of-payments pressures and improve energy security. If these initial steps succeed, the door is likely to open for additional regional and international investments in energy, electricity, infrastructure, and services.
According to Saudi investor Nabil Al-Mazloom, who spoke to The Media Line, the Saudi agreements are a political and economic signal that Syria is entering a reconstruction phase, which may encourage other countries and companies to participate in projects in the country.
Al-Mazloom noted that the agreements are also important for Saudi Arabia, as they offer investment opportunities in a market in need of reconstruction. The cost of rehabilitating Syria’s infrastructure is relatively low compared to the potential returns if production stabilizes, and expanding Saudi companies' presence outside the Gulf supports their economic growth and strengthens their position in the region.
He also indicated that Riyadh’s leading role in reconstructing a strategic oil and gas sector would give Saudi Arabia weight in Syrian and regional economic and geopolitical matters and open up the possibility of becoming a partner for export or derivative production later on if field operations and refinery development succeed.
However, these agreements face significant obstacles that could slow or limit their impact. The Syrian energy sector has suffered extensive wartime damage, meaning fields, pipelines, and facilities will require large, carefully managed investments and sustained maintenance before any meaningful increase in production becomes visible. In addition, the projects depend heavily on foreign companies operating in a degraded technical and institutional environment, which heightens the need for close oversight and credible, transparent guarantees to ensure work is carried out effectively.
Security and political instability in parts of the country pose further risks, as drilling, maintenance, and day-to-day operations can be disrupted if safety cannot be reliably maintained. Volatile global oil and gas prices also threaten the economic viability of these projects, particularly if production and rehabilitation costs in Syria remain high relative to international benchmarks.
On top of this, fully reviving the sector will require additional financing for processing plants, distribution networks, and transmission infrastructure that go beyond what the current agreements appear to cover. As a result, while the four deals between the Syrian Petroleum Company and Saudi firms mark a bold attempt to jumpstart Syria’s energy recovery, any tangible benefits are likely to emerge only gradually over the medium to long term.
If the agreements are successfully implemented, with updated infrastructure, a transfer of expertise and technology, staff retention, and transparent management, Syria could, in the coming years, transform from a country suffering from severe energy shortages to one with robust local production. This would improve electricity supply, support industry and services, and reduce dependence on imports.
As for Saudi Arabia, this investment could yield lucrative returns, enhance the presence of its companies in reconstruction and regional energy projects, and consolidate its role as an important economic player in rebuilding Syria.
This effort faces serious obstacles, including war-damaged infrastructure, the need for substantial capital, a fragile security and political landscape, and a management team that must operate with a high degree of openness and accountability. Real progress will hinge on genuine follow-through, a more stable foundation, and a clearly defined strategy for how reconstruction will unfold.