Syrian oil and gas production is set to recover in 2026 as the government regains control of key assets, according to Wood Mackenzie.
Easing sanctions and reduced political risks could spur renewed activity in the war-torn energy sector.
Analysts estimate Syria holds 1.3 billion barrels of oil equivalent (boe) in remaining discovered resources.
Recent actions by Syrian government forces have reasserted control over major oil and gas assets in Deir ez-Zor and Al-Raqqah provinces, including the Omar oil field (the country’s largest) and the Tabiyeh gas field.
This followed a withdrawal by the Kurdish-led Syrian Democratic Forces (SDF) under a newly announced 14-point agreement with Damascus.
The deal stipulates a ceasefire, handover of energy assets (including fields in Al-Hasakah province) border crossings, civil institutions to the central government, and gradual integration of SDF elements into state structures.
The collapse of the Assad regime in December 2024 prompted the US and EU to gradually lift economic sanctions, facilitating Syria’s return to the international financial system.
SWIFT transfers resumed in mid-2025, allowing foreign firms to compensate local staff and contractors.
Prior to 2011, Syria produced around 380,000 barrels per day (b/d) of oil and 900 million cubic feet per day (mmcfd) of gas; by 2021, output had plummeted to 50,000-80,000 b/d.
Several global players have inked agreements to re-enter Syria. Dana Gas signed a MoU to redevelop key gas fields, followed by MoUs with ConocoPhillips and Novaterra.
Four Saudi companies (TAQA, ADES, Arabian Drilling, and Arabian Geophysical and Surveying) committed to providing technical support.
Alexandre Arman, director of Middle East Upstream at Wood Mackenzie, stated: “The transfer of control over Syria’s northeast could mark a structural turning point for the country’s energy sector.
“Unified governance, sanctions relief and early foreign engagement lay the groundwork for a gradual upstream recovery.
“While infrastructure and political risks remain, particularly in the near-term, Syria’s resource base, combined with strong domestic gas demand and persistent power shortages, makes a compelling case for selective re-entry, starting with gas and expanding into oil as export routes are restored.”
Wood Mackenzie anticipates initial 2026 oil production gains via low-cost workovers, artificial lift upgrades, and facility repairs, with sustained growth hinging on foreign investment, technology, and export access.
Gas operators may lead re-entry, prioritising the safer Palmyride Basin to address power shortages.
Syria’s underexplored onshore areas and untapped offshore potential, with no wells drilled yet, offer further upside beyond the 1.3 billion boe estimate.
These developments signal a potential structural shift after over a decade of conflict.
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