ConocoPhillips is poised to become the first major U.S. oil and gas company to enter into a contract with Syria’s new government as the country seeks to revive its energy sector following years of conflict and economic sanctions. The Houston-based firm, together with Novaterra Energy, is preparing to develop existing gas fields and explore for new reserves under an agreement with the state-owned Syrian Petroleum Company (SPC).

The contract, expected to be formally signed this week according to sources familiar with the negotiations, builds on a memorandum of understanding signed last November. While ConocoPhillips declined to comment on ongoing business discussions, the deal marks a significant step in Syria’s efforts to rebuild its energy infrastructure.

This follows a previous memorandum of understanding signed in May by ConocoPhillips, SPC, QatarEnergy, and Total to explore offshore gas fields. Syrian officials have indicated that increasing gas output by about one billion cubic feet per day within a year could considerably aid the country’s energy production. Gas output in Syria has dropped sharply since the onset of the civil war, falling from a pre-war peak of 30 million cubic meters per day in 2011 to roughly one-third of that level.

The planned contract with ConocoPhillips arrives after U.S. company HKN Energy finalized a 25-year agreement with Damascus to operate the Rmeilan oilfields in northeastern Syria. Around the same time, SPC signed a contract with the Saudi firm ADES Holding Company to develop other gas fields. Energy experts estimate Syria requires approximately 18 million cubic meters of gas daily to meet its power grid demands.

The revival of these contracts follows a period of significant foreign withdrawal. Following the outbreak of war in 2011, many Western oil and gas companies, including Shell and Total, suspended operations and froze assets, declaring force majeure in response to the conflict and sanctions. President Ahmed al-Sharaa, who replaced Bashar al-Assad’s regime in the energy sector, has sought to either encourage foreign companies to reinvest or negotiate their exit.

Last year, the U.S. government offered limited sanctions relief allowing American companies to re-engage with Syria, despite ongoing regulatory uncertainties and risks. This policy shift has opened the door for ConocoPhillips and others to explore commercial opportunities in Syria’s energy sector.

Observers note the significance of this development. Andrew Tabler, a former senior U.S. adviser on Syria policy, described the moment as pivotal, emphasizing that securing contracts is a critical first step for advancing projects on the ground. The coming months will reveal how swiftly ConocoPhillips and its partners can move to restore Syria’s gas production amid ongoing political and economic challenges.