Eastern Syria fighting reshapes oil map, returns fields to state

As Syria regains eastern oil fields, officials say restoring production is key to easing fiscal pressure and stabilising the economy.

Economy

6 min read

Noor Malhem

Damascus

20 January, 2026

Oil occupies a central position in the economic landscape of eastern Syria

As the Syrian state regains control over large parts of the east following the expulsion of the Syrian Democratic Forces (SDF), oil has re-emerged as a central issue in discussions over economic recovery.

Central Bank of Syria Governor Abdelkader Husrieh said restoring all natural resources to state supervision would allow the central bank to resume its role as the government's sole financial agent, overseeing credit, imports and financing through official channels.

In remarks posted on his Facebook page on Sunday, Husrieh said the move would help end years of institutional fragmentation, reliance on informal mechanisms and weakened financial oversight.

He argued that the loss of state control over key resources had contributed to corruption, eroded confidence in the financial system and undermined the Syrian pound.

Oil's role in the economy

Since the discovery of major oil fields in the 1960s, eastern Syria has been central to the country's energy sector, with Deir Ezzor, Hasakah and Raqqa accounting for most national production.

Before the war, Syria produced an average of about 380,000 barrels per day, largely from fields such as al-Omar, al-Tanak, al-Jafra and al-Taym in Deir Ezzor, as well as Rumeilan and al-Suwaydiyah in Hasakah.

Oil revenues covered a significant share of domestic consumption, supported electricity generation and industry, and provided a major source of income for the state. The sector also underpinned transport, logistics and energy-related industries.

During the conflict, however, many oil fields fell outside government control and suffered damage from fighting or unregulated extraction.

Crude was often produced using rudimentary methods, causing economic losses and environmental harm, while depriving the state of revenue and fuelling the growth of a parallel economy. The loss of eastern fields contributed to fuel shortages, rising prices and pressure on the Syrian pound.

Reserves and current production

Syria's oil reserves are estimated at about 2.5 billion barrels, according to previous figures from the Ministry of Oil and Mineral Resources, roughly 0.2 percent of global reserves.

Production has fallen sharply, from around 385,000 barrels per day in 2010 to about 110,000 barrels currently, including roughly 100,000 barrels from fields previously under SDF control and about 10,000 barrels from government-managed fields.

Production is spread across approximately 78 oil and associated oil and gas fields. Deir Ezzor hosts the largest share, followed by Raqqa, Homs and Hasakah. Rumeilan remains the largest cluster by number of wells, producing about 30,000 barrels per day, while al-Omar produces roughly 25,000 barrels daily.

Oil is transported through storage facilities and pipelines, including a 560-kilometre line from Tal Adas to Tartus. Although some pipelines were damaged during the conflict, most sustained limited harm. Crude is refined mainly at the Baniyas and Homs refineries, both operating below prewar capacity.

Proven natural gas reserves are estimated at about 240 billion cubic metres. Gas production has dropped from around 30 million cubic metres per day in 2010 to roughly 9.1 million currently.

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Recovery of key fields

Following recent military advances in eastern Syria, the Syrian Petroleum Company (SPC) has taken control of several oil sites previously held by the SDF, including the al-Rasafa and Sufiyan fields and the al-Thawra oil complex.

Safwan Sheikh Ahmad, director of corporate communications at SPC, told The New Arab that the al-Thawra complex came under full state control after Syrian army advances around Deir Hafir and southwestern rural Raqqa.

"From the first hours of the operations, the company established an emergency operations room to monitor the situation of the oil fields and take the necessary measures to ensure their safety," he said.

Ahmad added that SPC coordinated with military units and technical teams to assess the condition of the sites and secure infrastructure. According to him, production from the recovered fields reached about 2,500 barrels per day in December 2024 and is expected to be added to the current daily output of around 10,000 barrels.

Because of damage to parts of the pipeline network, crude oil is currently being transported by tanker trucks to processing and separation stations, he said.

Fields still outside state control

In parts of Deir Ezzor and Raqqa, some oil fields remain under SDF control, with local sources estimating that they produce between 3,000 and 4,000 barrels per day using rudimentary extraction methods, and that part of the output is diverted into informal markets.

Analysts say this continues to deprive the state of revenues and complicates efforts to stabilise the oil sector and reintegrate production into the formal economy.

At the same time, Syrian defence sources said government forces had taken control of the al-Omar oil field, the country's largest, as well as the Koniko gas field in Deir Ezzor.

Energy Minister Mohammed al-Bashir said advances by the Syrian Arab Army west of the Euphrates River and the recapture of key areas enabled the state to regain strategic facilities that had long remained outside administrative control.

Ahmed Suleiman, director of international cooperation at the Ministry of Energy, urged workers at the recently recovered al-Rasafa and Sufiyan fields to adhere to their posts and continue their duties in full coordination with the relevant authorities.

"Restoring oil fields in the eastern region is not merely about recovering production sites," Suleiman told The New Arab. "It is a strategic sovereign step that reflects the state’s ability to regain control over its vital resources."

Suleiman said the return of the fields to state management would "directly enhance national energy security, strengthen state revenues, ease budgetary pressures and finance vital sectors such as electricity and industry", adding that the move forms part of a broader plan to gradually restart eastern fields and return the economy to a more organised recovery path.

Economic implications

Many say reintegrating oil into the formal economy is essential, though insufficient on its own, to revive Syria's economy.

Economist Ziad Arabsh said oil in eastern Syria is not merely a source of revenue but a decisive factor in macroeconomic stability.

"Even gradual recovery in production can ease pressure on the trade balance and reduce the need to import fuel products," he told The New Arab, adding that this would directly affect the exchange rate and inflation levels while helping curb the parallel economy that has expanded in recent years.

Economist Ammar Youssef said oil revenues are also key to restarting energy-linked industrial and service sectors, stressing that the priority should be channelling production through official mechanisms.

"The key now is using oil to support electricity generation, industry and logistics, rather than relying solely on deficit financing," he said, adding that investment in rehabilitation could restore a large share of prewar output over time and strengthen future export capacity.

Despite ongoing challenges, including damaged infrastructure and limited access to financing and expertise, analysts agree that restoring state control over eastern oil fields remains a necessary step toward stabilising the economy and laying the foundations for a more sustainable recovery.