For decades, Syria’s oil and gas industry was one of the cornerstones of the national economy. The country first began exploring its hydrocarbon potential in the 1950s, with commercial production established in the 1960s. The Euphrates Valley in the northeast—centred on Deir ez-Zor—became the beating heart of Syrian oil output, later joined by smaller fields in Hassakeh, Raqqa and the central desert around Palmyra. By the 1990s and early 2000s, output reached around 400,000b/d, making Syria a meaningful producer within the Middle East and a net exporter of crude. Natural gas also emerged as an important contributor, fuelling power generation and providing feedstock for domestic industries.
The country’s upstream sector, however, has long been characterised by heavy state involvement, often in partnership with IOCs. While this helped build capacity, years of underinvestment and politicisation, coupled with limited transparency in contracting, constrained efficiency and technological progress. Still, Syria’s hydrocarbons represented both a lifeline for the state and an engine of development for its people.
Years of conflict and mismanagement
The outbreak of civil war in 2011 marked the start of a devastating chapter. Key producing regions in the northeast quickly became fragmented between government forces, rebel groups and, later, extremist organisations. Rebel-held fields were often operated with little technical oversight, leading to unsafe extraction practices, environmental degradation and the widespread burning-off of resources. Infrastructure was looted or destroyed. The result was a collapse in production from hundreds of thousands of barrels per day to only a fraction of the former output.
International sanctions, particularly from the US and Europe, compounded the decline by preventing trade, investment and access to technology. Meanwhile, years of misappropriation of assets by competing factions stripped the sector of discipline and oversight. By the mid-2010s, what had once been a functioning national industry was reduced to a patchwork of poorly managed fields and heavily damaged infrastructure, with lasting consequences for Syria’s environment and economy.
A turning point: New government, new opportunity
That situation changed dramatically on 8 December 2024, when rebel soldiers led by Hayat Tahrir al-Sham seized Damascus, bringing an end to Bashar al-Assad’s decades-long rule. While challenges remain, the new government has taken early steps to stabilise the country, improve security and open the door to international investment. Crucially, the US and other Western nations have begun lifting sanctions in support of Syria’s political transition, signalling a profound shift in the country’s economic outlook.
For the oil and gas industry, this marks a turning point. After more than a decade of conflict and mismanagement, there is now a pressing need—and a compelling opportunity—to rebuild the sector on stronger foundations. Syria’s hydrocarbon resources remain vast and underexploited, with proven reserves estimated at 2.5b bl of oil and significant gas potential in both conventional and unconventional plays. Revitalising production could provide vital revenues to support reconstruction, create jobs, and underpin long-term energy security.
The role for small and medium operators
Unlike in the past, where state-led companies and a handful of large international operators dominated the landscape, the next chapter of Syrian oil and gas is likely to be defined by agile, independent upstream companies. The scale of the challenge—from repairing damaged infrastructure to remediating environmental harm—requires operators with the flexibility, discipline and willingness to engage directly with local stakeholders. Smaller and mid-sized companies are often better placed to bring modern operating standards, to maximise production from fields that may not be economic for IOCs, while prioritising ESG performance and the fostering of sustainable partnerships with host communities.
Euphrates is one such company preparing to step forward. Backed by international private capital and led by a team with deep regional experience, the company is actively screening low-risk opportunities in Syria. The Euphrates leadership team has deep experience of working in Syria, having operated assets in the country between 2003 and early 2012, successfully delivering production of more than 25,000b/d while creating more than 100 local jobs and leading on CSR initiatives to further support and benefit local communities.
This proven track record provides both technical credibility and a clear understanding of Syria’s unique operating environment. Euphrates is committed to working closely with the new Syrian government, regulators and local stakeholders to build trust and align incentives, leveraging its independent structure to move quickly and efficiently to revitalise this strategic industry.
Building for the future
Euphrates also brings a broader regional perspective, with proven success across the Middle East and North Africa, with a particular focus on Syria and neighbouring Iraq. Its ambition is not only to restore Syrian production but also to create a meaningful independent E&P company of scale, one that can serve as a trusted partner in the wider regional energy landscape.
The lifting of sanctions and the emergence of a new political order have created conditions for Syria’s oil and gas sector to re-emerge. The road ahead will not be easy—rebuilding infrastructure, restoring investor confidence and managing security risks will take time. But the potential rewards are significant, both for Syria’s economic recovery and for operators willing to commit to a responsible, long-term presence.
As the country stabilises, the opportunity for small to medium-sized companies to take the lead is unprecedented. With its strong regional track record, proven expertise and commitment to ESG, Euphrates is well-positioned to help write the next chapter in Syria’s oil and gas story—one built on responsibility, sustainability and shared prosperity.
Majid Qamardeen is director at Euphrates Energy. This article is taken from our Outlook 2026 report. To read Outlook 2026 in full, click here.
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