Syrian oil and gas production set to recover in 2026 as government regains control of key assets

Recent actions by the Syrian government could pave the way for increased oil and gas production this year and beyond, according to a recent insight from Wood Mackenzie.

Syrian government forces have moved to reassert control over key 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, following a withdrawal by the Kurdish-led Syrian Democratic Forces (SDF) under a newly announced 14-point agreement with Damascus.

The deal provides for a ceasefire, the handover of energy assets – including fields in Al-Hasakah province – border crossings and civil institutions to the central government, and the gradual integration of SDF elements into state structures.

According to Wood Mackenzie, this territorial handover, combined with sanctions relief and early foreign engagement, creates conditions for Syria's energy sector to begin recovering after more than a decade of conflict. Before 2011, Syria produced roughly 380,000 b/d of oil and 900 mmcfd of gas. By 2021, national oil output had dropped to between 50,000 and 80,000 b/d.

Alexandre Araman, director, Middle East Upstream at Wood Mackenzie, said: "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 expects oil production to begin recovering in 2026, initially driven by low-cost workovers, artificial lift upgrades and surface facility repairs. More meaningful growth will depend on foreign capital, technology transfer and access to export routes.

Following the collapse of the Assad regime in December 2024, the US and EU gradually lifted economic sanctions, enabling Syria's reintegration into the international financial system. SWIFT transfers resumed in mid-2025, allowing foreign companies to pay local staff and contractors.

Several international oil companies have already signed agreements to return to Syria. Dana Gas signed a memorandum of understanding (MoU) to redevelop key gas fields, followed by MoUs involving ConocoPhillips and Novaterra. Additionally, four Saudi firms – TAQA, ADES, Arabian Drilling and Arabian Geophysical and Surveying – signed agreements to provide technical support.

Wood Mackenzie estimates Syria retains remaining discovered oil and gas resources of at least 1.3 billion boe, with large areas of the country still underexplored. Beyond onshore recovery, Syria's offshore sector remains entirely untapped, with no exploration wells drilled to date.

Gas-focused operators are expected to re-enter first, reflecting the comparatively safer operating environment in the Palmyride Basin and the strategic priority of power generation.