Shell plc SHEL is reportedly seeking an exit from Syria’s al-Omar oilfield, the country’s largest producing asset, as the government regains control of key energy infrastructure and U.S. companies signal renewed interest in the sector. The development highlights a potential reshaping of Syria’s oil and gas industry more than a decade after the war and sanctions forced Western majors to pull back.
According to Syria’s state-run Syrian Petroleum Company, Shell has asked to withdraw from the al-Omar oilfield and transfer its stake to state-owned operators. The field was operated as a joint venture between Shell and the Syrian Petroleum Company before the conflict erupted in 2011.
Shell, currently carrying a Zacks Rank #3 (Hold), suspended all exploration and production activities in Syria in December 2011 following the outbreak of the civil war and the imposition of European Union sanctions on Syria’s oil sector. Since then, its stake in al-Omar has remained inactive, with negotiations now underway to reach a financial settlement that would allow full state control of the asset.
While Shell has not publicly commented on the request, Syrian officials said the transition could be completed in a short period, though no specific timeline has been disclosed.
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The move comes after Syrian government forces regained control of the al-Omar oilfield following a swift offensive against Kurdish forces, who had held the site for nearly a decade. During that time, the field was used partly as a military base and operated at a fraction of its potential capacity.
At its peak, al-Omar produced around 50,000 barrels per day. Under Kurdish control, output reportedly fell to about 5,000 barrels per day, using what officials described as basic and damaging production methods. As a result, the field now requires significant repairs and modernization before it can return to meaningful production levels.
Even as Shell seeks an exit, U.S. energy firms appear to be exploring opportunities in Syria’s battered oil and gas sector. Syrian officials said ConocoPhillips COP is expected to return to invest in gas fields. COP also entered into a memorandum of understanding with Syria in November 2025 to develop their existing gas resources and explore new ones. Per the new memorandum with ConocoPhillips, the gas output is expected to rise by 4-5 million cubic meters per day within the span of one year.