The agreement, expected to be signed this week, will see ConocoPhillips and Novaterra Energy cooperate with the state-owned Syrian Petroleum Company (SPC) to develop existing gas fields and explore new reserves, according to a report by the Financial Times citing sources familiar with the matter.

The planned deal builds on a memorandum of understanding signed in November 2025 and comes as Damascus seeks to revive its energy sector after years of conflict, sanctions, and declining production.

ConocoPhillips declined to comment on the reported agreement, telling the newspaper that it does not comment on “ongoing business development or commercial activities.”

In May, the company signed another memorandum of understanding with SPC, alongside QatarEnergy and TotalEnergies, to study offshore energy exploration opportunities.

In 2025, the Syrian government said that the project could increase the country’s gas production by between four and five million cubic meters per day within a year. Syria’s gas output has fallen sharply since the outbreak of the conflict in 2011, dropping from around 30 million cubic meters per day before the war to roughly one-third of that level.

The reported agreement follows a series of energy-sector deals signed by Damascus in recent months. U.S.-based HKN Energy recently began operations in the Rmelan oil fields in northeast Syria after finalizing a 25-year upstream contract with the Syrian government. In April, SPC also signed an agreement with Saudi Arabia’s ADES Holding Company to develop gas fields.

Energy experts estimate that Syria requires about 18 million cubic meters of natural gas daily to meet electricity demand. Despite recent improvements, the country continues to face power shortages and relies heavily on imported gas from Azerbaijan and Qatar.

Electricity availability has reportedly increased from about two hours per day to nearly 13 hours daily in some areas following recent energy imports and infrastructure improvements.

Although Syria’s oil and gas reserves are relatively modest compared with those of other countries in the region, the sector is viewed as a critical source of future state revenue as authorities pursue economic recovery.

Since assuming power after the ouster of former Syrian President Bashar al-Assad in December 2024, President Ahmad al-Sharaa has prioritized attracting foreign investment into the energy sector. The effort has coincided with Washington’s encouragement of U.S. companies to explore investment opportunities in Syria following the easing of sanctions.

Western energy companies, including Shell and TotalEnergies, suspended their Syrian operations after the conflict began in 2011. The new Syrian administration has reportedly urged those companies either to resume investment or negotiate settlements regarding their frozen assets.

In recent months, the Syrian government has signed agreements and memorandums of understanding with several international and regional energy companies, including Chevron, QatarEnergy, TotalEnergies, and the UAE-based Dana Gas, as part of a broader strategy to attract foreign investment and rebuild the country’s energy infrastructure.