European Operators Eye Syrian Upstream
Croatia's INA and Hungary's MOL Group are studying the resumption of upstream oil and gas operations in Syria, more than fourteen years after foreign producers wound down activity in the country. A joint technical team formed with the Syrian Petroleum Company is assessing the technical, safety, and commercial conditions for a possible restart, focusing on a roadmap that could bring back foreign investment to fields that have sat largely idle since 2012.
Pre-2011 Output and $1.1 Billion in Sunk Investment
Before operations were suspended, the two operators' Syrian assets produced 37,300 barrels of oil and gas per day, sitting on cumulative investment placed at approximately $1.1 billion (US dollar, USD). Those figures include a gas processing facility at the Hayyan field, one of the larger pieces of upstream infrastructure left behind when international operators withdrew.
Notable Progress, Still Complex
INA chief executive Zsozsanna Orotay said discussions with Syrian authorities had shown "notable progress" and were proceeding in a "constructive spirit." She also cautioned that any return remains complex, citing regulatory, legal, commercial, and operational issues that would need to be resolved before drilling or production could restart.
What a Restart Would Mean for the Pound
A confirmed return by the two operators would channel hard currency into the Syrian economy through royalties, local procurement, and wages. The Syrian pound (SYP) traded at around 13,350 against the US dollar on 7 May 2026, broadly flat over the past week but still 5.3 percent weaker over the past month.
Next Steps for the Technical Team
The joint technical team's brief is to draft a feasibility plan covering safety standards, field rehabilitation, and the regulatory framework under which the companies could operate. No timeline for a final investment decision has been disclosed, and any restart would still depend on resolution of the legal and commercial issues flagged by the company's leadership.