TotalEnergies CEO in Syria to sign exploration deal, first since 2011 war

TotalEnergies SE Chief Executive Patrick Pouyanne arrived in Damascus on Tuesday to discuss signing an offshore exploration contract, betting on Syria's emergence as an alternative transit route for Iraqi oil after the Strait of Hormuz closure disrupted crude flows from the Persian Gulf.

"Syria's offshore area has never really been explored historically, so we have partnered other companies to look into it," Pouyanne told reporters in Damascus, where he is part of a French presidential delegation accompanying Emmanuel Macron on the first visit by a Western European head of state since Syria's new authorities took power in December 2024. "We will discuss it today with our Syrian counterparts to see whether we can move toward a contract."

TotalEnergies signed a memorandum of understanding in May with the Syrian Petroleum Company covering an offshore block in the eastern Mediterranean. The company has partnered with QatarEnergy and ConocoPhillips on the review, Pouyanne said. While the CEO noted that most discoveries in the region — in Cyprus and Israel — have been gas, he added: "Obviously we'd rather find oil than gas."

Syria's strategic importance for energy markets has grown since the closure of the Strait of Hormuz during the U.S.-Israeli war with Iran forced a fundamental rethinking of regional oil logistics. Iraq began trucking oil through Syria for re-export in April, and the two countries have discussed rehabilitating the oil pipeline linking them — a project that could provide an alternative to maritime routes that previously handled the bulk of Iraq's crude exports.

Syria's Return to the Energy Map

The visit marks the first by a Western oil major CEO since the end of Syria's 13-year civil war, which toppled Bashar al-Assad in December 2024 and killed more than half a million people. Pouyanne acknowledged the security challenges — two bombs exploded near Macron's hotel on Tuesday — but said the country's geographic position makes it indispensable. "It is a country at the crossroads of the Middle East," he said. "If we want to invest in the Middle East, we'll need to find alternative routes."

Macron's visit, the first by a French president since Nicolas Sarkozy in 2009, signals a broader diplomatic rehabilitation. The French leader is accompanied by several key economic players including CMA CGM Chief Executive Rodolphe Saade, reflecting interest in Syria's reconstruction and its potential as a logistics hub connecting the Mediterranean to the Gulf.

Pipeline Politics and the Hormuz Factor

A rehabilitated Iraq-Syria pipeline could reshape regional supply dynamics by providing an overland outlet for Iraqi crude that bypasses the Strait of Hormuz entirely. Iraq, which depends on the strait for most of its exports, has been accelerating efforts to secure alternative routes since the conflict with Iran disrupted tanker traffic. The two countries discussed mechanisms for energy transit last month, though rebuilding Syria's damaged pipeline infrastructure will require substantial investment and time.

TotalEnergies' MoU covers an offshore block in Syria's Mediterranean waters, an area that remains largely unexplored due to decades of conflict and international sanctions. The company has not disclosed specific investment figures or timelines. Pouyanne cautioned that the security situation does not yet allow full operations. "We should give the government time to take control of the country," he said. "We need to be a little patient."

This article is for informational purposes only and does not constitute investment advice.