Chevron Initiates Discussions With Syria Over Oil and Gas Exploration

Chevron Corporation CVX, a U.S. integrated energy giant, and the Syrian Petroleum Company recently met with President Ahmed al-Sharaa to discuss the possibility of working together on the exploration of offshore oil and gas fields in Syria, per the state news agency in the country. However, any further details regarding the discussions have not yet been disclosed.

The meeting was also reportedly joined by individuals from Qatar's UCC Holding. Earlier this year, Qatar’s UCC Holding headed a consortium of international companies, including Syria, that came together to sign a Memorandum of Understanding for developing large-scale power generation projects backed by $7 billion worth of foreign investment.

The Syrian civil war adversely impacted the energy infrastructure in the country. As a result, Syria is currently able to produce only a small fraction of its electricity requirements. In recent months, the situation has been improving, aided by increased gas supply from Azerbaijan and Qatar. The recent interactions with Chevron and the Syrian Petroleum Company indicate that the country is putting efforts into rebuilding and improving the energy infrastructure that has suffered heavy damage during the 14 years of conflict. Damascus, the capital city of Syria, recently stated that it intends to increase power supply, which is currently limited.

The blow to Syria’s energy and power infrastructure due to the civil war has been huge, resulting in domestic natural gas production declining from 8.7 billion cubic meters in 2011 to 3 billion cubic meters in 2023. The recent discussions regarding the exploration of offshore oil and gas resources suggest that the country is looking to provide a boost to its energy sector with outside partners.

CVX’s Zacks Rank and Key Picks

CVX currently carries a Zacks Rank #3 (Hold).

Some top-ranked stocks from the energy sector are Oceaneering International OII, Canadian Natural Resources Ltd. CNQ and FuelCell Energy FCEL. While Oceaneering currently sports a Zacks Rank #1 (Strong Buy), Canadian Natural Resources and FuelCell carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.

Canadian Natural Resources is one of the largest independent energy companies in Canada engaged in the exploration, development and production of oil and natural gas. The company boasts a diversified portfolio of crude oil, natural gas, bitumen and synthetic crude oil. It has delivered 25 consecutive years of dividend increases, one of the longest streaks among global oil producers.

FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

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This article originally published on Zacks Investment Research (zacks.com).

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