Chevron signs deal for Syrian offshore exploration, raising stakes for Lebanon’s oil sector

Report by Bassam Abou Zeid, English adaptation by Karine Keuchkerian

Amid rapid political and security shifts in the region, a memorandum of understanding was signed between U.S. energy giant Chevron, the Syrian Petroleum Company, and Qatar’s UCC Holding to assess opportunities for oil and gas exploration off Syria’s coast.

The announcement came shortly after the lifting of Caesar Act sanctions and coincided with the involvement of Syrian local forces, most notably the Syrian Democratic Forces (SDF), in the country’s new state, amid growing discussions of potential security arrangements in the region, particularly between Damascus and Tel Aviv.

Together, these factors have given the agreement dimensions that go beyond its technical scope, framing it as a U.S. “reward” to Syria’s new leadership and possibly an indicator of relative stability ahead.

Syria’s coastline stretches along the eastern Mediterranean between areas that have seen major gas discoveries. With Chevron’s entry into Syrian waters, the U.S. company is now present in most eastern Mediterranean countries surrounding Lebanon. 

By contrast, Lebanon’s offshore sector currently includes France’s TotalEnergies, Italy’s Eni, and QatarEnergy, with no U.S. companies involved.

In Israel, Chevron operates the Leviathan field, one of the largest gas fields in the region. The company is also active in Cyprus and Syria, in addition to its cooperation with Turkey in the energy sector.

This development has brought Lebanon’s oil and gas file back into focus, and its connection to two key issues.

The first relates to a U.S. decision to freeze the file pending a resolution of the Hezbollah weapons issue.

The second concerns completing maritime border demarcation with Syria, given the existing maritime overlap affecting Lebanon’s northern offshore blocks.

Sources at the Lebanese Petroleum Administration said there are no concerns about major international companies operating in adjacent Syrian waters, stressing that such companies do not operate in disputed areas.

The sources called for accelerating the completion of the maritime border demarcation northward between Lebanon, Syria, and Cyprus, amid reports of French-Saudi efforts to launch this process in the coming phase.

Even as regional investments in the eastern Mediterranean move forward, Lebanon’s oil and gas sector remains hostage to political developments and the timing of decision-making.