SPC signs contract with ConocoPhillips and Novaterra Energy

The Syria Petroleum Company (SPC) has signed a development contract with the USA’s ConocoPhillips and Novaterra Energy to develop a number of gas fields in Syria and increase production from existing fields, to boost the supply of urgently needed gas for the electricity and other key sectors

The contract follows an MoU signed seven months ago and a series of technical, legal and commercial meetings and discussions focused on preparing studies and formulating the executive frameworks of the project.

The project aims to increase gas production from the targeted fields and develop their operational infrastructure in line with the latest technical standards, while supporting plans to develop the energy sector and attract international expertise and investment to contribute to the rehabilitation and development of the sector’s infrastructure. Years of civil war and sanctions have seen the country’s domestic natural gas production plummet to around 3 bcm in 2023 from 8.7bcm in 2011, according to Reuters. Syria’s power generation sector is short of reliable gas supply, with existing production meeting less than half of current demand and necessitating gas imports. 

Minister of Energy Eng Mohammed Al-Bashir confirmed that the contract represents an important milestone in the development of Syria’s energy sector, enhancing natural gas production, supporting the electricity system and accelerating economic recovery efforts.

Yousef Qiblawy, president and chief executive officer of SPC stated that the contract marks an important step in the development of the gas sector and reflects the confidence of international partners in the investment opportunities available in the country. He stressed that the project will contribute to increasing production, improving operational efficiency and supporting energy security.

“Through this partnership, we look forward to accelerating the development of existing gas fields and exploring new opportunities in a way that supports energy security and strengthens the sector’s ability to meet development needs in the coming phase,” he said.

Officials from ConocoPhillips and Novaterra also expressed their commitment to leveraging their technical and operational expertise and applying the latest global technologies to contribute to the development of gas fields and accelerate production in cooperation with Syrian national teams.

In a bid to attract foreign investment into the oil and gas sector, the Syrian government has signed agreements with a number of international and regional companies to assess and develop its oil and gas fields including Chevron, QatarEnergy, TotalEnergies and Dana Gas.

The lifting of sanctions on Syria last year opened the way for US companies to do business with the new government. ConocoPhillips was present in Syria before the civil war. In May, it signed a deal with Total Energies, QatarEnergy and the Syria Petroleum Company to launch a technical review of offshore Block 3. Novaterra specialises in restoring and developing oil natural gas resources in challenging environments. It aims to expand Syria’s oil production and gas supply for power generation by restoring production from existing fields, bringing on-stream discovered accumulations and exploring for and developing further resources.

In the push to restore production capacity, efforts are ongoing to return oilfields to service and increase operational readiness through technical upgrades and maintenance work. Syria’s Ministry of Energy has completed the rehabilitation of five oil wells in the al-Bishri field in the country’s central region. The work was carried out by SPC using its in-house technical expertise and operational resources. SPC is continuing work on the remaining stages of the project.