Turkey Enters Syria's Oil and Gas Sector with Major Exploration Deals

Turkey's state oil company and private firms are set to begin seismic surveys and exploration in Syria, as announced by Turkish energy minister Alparslan Bayraktar. This move comes as Damascus actively seeks foreign capital to revive its war-battered energy sector.

Speaking at a joint press conference in Damascus on Wednesday, Mr Bayraktar stated that Turkiye Petrolleri AO (TPAO) has the capacity to start work immediately on onshore and offshore blocks. He signed a series of energy agreements with his Syrian counterpart Mohamed Al Bashir, highlighting Ankara's ambition to become a leading partner in Syria's post-war reconstruction following the ouster of Bashar Al Assad in December 2024.

Turkish officials have engaged extensively with Damascus, and Turkish President Recep Tayyip Erdogan has cultivated close ties with Syrian President Ahmad Al Shara. This positions Ankara as a dominant foreign player in the economic and political transition of the country. For TPAO, this initiative adds Syria to a growing list of international frontiers, which already includes an exploration well off the coast of Somalia and an offshore block licence in Libya.

Syria was once a significant oil and gas producer in the eastern Mediterranean before 14 years of civil war severely damaged the industry. Output collapsed by about 80 per cent from a pre-war peak of 380,000 barrels a day. However, the Syrian energy ministry reported that crude production reached 14.8 million barrels in the first half of 2026, averaging about 82,000 barrels a day. The government estimates it needs more than $30 billion to fully rehabilitate the sector.

Other international players are also entering the market. Abu Dhabi-listed Adnoc Drilling has identified Syria as a growth market alongside Egypt and Iraq. Furthermore, Damascus has secured agreements with ConocoPhillips in partnership with Novaterra, as well as UAE-based Dana Gas following the lifting of late-year US sanctions.

In addition to oil and gas, Turkey and Syria will commission new infrastructure to triple electricity transmission capacity between the two nations to over 800 megawatts. Turkey's state mining company MTA and Syria's general directorate of mineral resources also signed a non-binding agreement regarding phosphate resources, potentially leading to a joint venture.

Syria's domestic energy sector is showing early signs of recovery, having produced 1.429 billion cubic metres of raw natural gas and 3.5 million tonnes of petroleum products in the first half of 2026. The ministry noted that 152 wells returned to production, 10 new wells came online, and the Amrit offshore rig and Homs pumping station resumed operations. Overall, Syria has signed seven preliminary agreements and three contracts with international companies during the first half of the year.