The Syrian oil is in an American hand… Chevron whales’ the regional waters

Chevron has signed a memorandum of understanding with the Syrian Oil Company and Qatar’s UCC Holding Group, with the aim of studying oil and gas exploration opportunities in Syria’s territorial waters.

The move came with the direct support of the US envoy to Syria, Tom Barrack, who considered Chevron to be one of the most prominent global companies that usually move along the paths drawn by US policy.

This development has attracted the attention of several international powers, foremost of which is Russia, Washington’s traditional rival in the Syrian issue.

With Chevron on the line, the United States appears to have achieved one of its long-term goals in the country, by polarizing the current power politically and gradually moving to employing economic tools as a primary axis of influence.

Washington views Syria’s oil and gas resources, particularly in the Mediterranean, as an opportunity beyond direct financial gains to serve as part of its broader strategy in the Eastern Mediterranean.

Despite being one of the world’s largest energy producers, its major companies are seeking to expand into offshore fields, especially in the fields of natural gas and untapped offshore resources, with the aim of diversifying sources of income, reducing risk, and opening up new markets.

In this context, the interest in Syria comes after the easing of some sanctions and the start of the reconstruction phase, in an attempt to introduce American companies into the Syrian energy sector, giving Washington direct economic influence through the market, rather than settling for traditional political influence.

At the same time, this engagement serves another purpose: to reduce the influence of adversaries within the Syrian arena.

By engaging regional partners such as Qatar and Türkiye, the United States seeks to build an economic network of interests that ties Damascus to the Gulf and Atlantic energy system, strengthening alliances and redrawing the balance of power in the Eastern Mediterranean.

Syria suffers from a large deficit in oil production, needing between 150,000 and 200,000 barrels per day, while production levels weren’t high even before the outbreak of the war in 2011 due to the age of infrastructure and technologies used since the 80s.

At that time, production was about 400,000 barrels per day, of which less than half was consumed and the rest was exported.

According to experts, the entry of international companies into the exploration sector in Syria could raise production to about one million barrels per day, which far exceeds the needs of the local market, allowing the export of surplus and supporting the Syrian economy if the revenues are effectively managed.

Meanwhile, the exploitation of marine resources may push the numbers to higher levels, in addition to large quantities of gas, as the proximity of the Syrian coast to Europe gives these resources additional importance in global energy markets.

The potential projects to establish liquefied natural gas plants in Baniyas with the aim of exporting to the European continent, stressing that American companies, led by Chevron, are interested in this route.

However, what has been signed so far is nothing more than a memorandum of understanding and hasn’t yet turned into a binding contract, which means that its practical effects are still limited.

Chevron operates in dozens of countries around the world, with a major focus in the United States, Kazakhstan, Australia, Africa and Latin America, as well as investments in Arab countries such as Saudi Arabia, Kuwait, Egypt and the United Arab Emirates.

However, its noteworthy that the company is the largest foreign operator of Israeli gas fields in the Eastern Mediterranean, led by the giant Leviathan field and Tamar.

This role was strengthened in 2020 after its acquisition of Noble Energy, making it the most prominent external player in Israel’s gas sector.

Since the 2023 Gaza war, Chevron has been subjected to widespread criticism and boycott campaigns in a number of European countries, where movements supporting the Palestinian cause have considered its investments in the Israeli energy sector to constitute indirect economic support for Israel.

What is striking is that Chevron’s pursuit today in Syrian waters was previously attributed to the Russians, when Damascus signed an agreement back in 2013 to explore for oil and gas off its Mediterranean coast, in the first offshore exploration project of its kind.

At the time, the target area covered an area of approximately 2,190 square kilometers between Tartus and Banyas, and the contract was to span 25 years, with full Russian funding for geological surveys and pilot drilling, up to the development of fields in case commercial reserves were found.

The project was abruptly halted in 2015, after the Russian companies announced its withdrawal due to the deteriorating security situation.

The freeze wasn’t limited to offshore exploration, but also included onshore projects near the Turkish and Iraqi borders.

Today, with Chevron and regional partners entering the scene, the map of investment in Syria’s energy sector appears to be heading into a new phase, reflecting deeper shifts in the international balance of influence within the country and in the Eastern Mediterranean as a whole.