AXP Energy, an Australia-listed junior oil and gas company, has entered into an agreement to acquire a 25% minority stake in Block 9, a production sharing contract (PSC) located onshore Syria. This deal comes amid a gradual increase in industry interest in Syria, both offshore and onshore, following the establishment of the transitional government under President Ahmed al-Sharaa in early 2025, which has been actively seeking foreign investment. Major players such as Chevron and TotalEnergies have already signed provisional agreements for deepwater acreage, while Gulands Petroleum awaits the lifting of force majeure on Block 26 and ConocoPhillips explores revitalizing gas production.

The Block 9 PSC covers an area of 10,039 square kilometers on the northern flank of the Palmyride basin. The local operator, Simpora Latakia, retains a 50% interest, while the remaining 25% is held by an undisclosed company. Simpora is a subsidiary of Septima Energy, a privately-owned firm based in Singapore. The PSC was originally awarded in September 2007, but operations were suspended in 2011 due to sanctions imposed on Syria. During the initial four-year operational window, the operator invested US$25 million in reprocessing 1,800 kilometers of 2D seismic data, acquiring 420 square kilometers of 3D seismic data, and drilling the Itheria-1 exploration well to a depth of 2,072 meters before it was suspended due to sanctions and civil unrest. The Itheria well targeted a prospect with potential resources of 338 million barrels of oil equivalent, while another prospect, Bashaer, could hold 102 million boe.

AXP has paid a US$100,000 deposit to secure the agreement and must make an additional payment of US$1 million within 60 days of the announcement. The company will not be required to contribute to past costs but will fund 35% of all future capital expenditure under the agreement, which will decrease to 25% once a second commercial discovery is made. As part of the deal, Michael Rego, managing director of Septima Energy and former CEO of Aminex (focused on the Ntorya gas field in Tanzania), will join AXP’s board.

The Block 9 partners plan to reprocess and re-interpret seismic data and drill two exploration wells, starting in the fourth quarter of 2027. The current goal is to re-enter the Itheria-1 well and drill it to a depth of approximately 2,700 meters, as well as drill a probe to about 2,600 meters on the Bashaer prospect. Sam Jarvis, chairman of AXP, highlighted the strategic timing of the entry, noting that geopolitical conditions have shifted from closed to open, and that the company is entering alongside Chevron, ConocoPhillips, and other significant operators as first-movers into a market expected to become crowded within 12 to 24 months. He emphasized the rarity of combining de-risked geological assets, supportive government policy, and first-mover advantage.

Block 9, previously operated by Poland's Kulczyk Oil Ventures, is located near existing oil and gas infrastructure and Mediterranean export routes via the Baniyas and Tartous terminals. The acreage also abuts the Mediterranean coast and the port of Latakia, while lying south of the border with Turkey and the major city of Aleppo. Despite the strategic nature of the deal, AXP’s shareholders appeared unenthusiastic, as the company’s stock price plunged to an all-time low by the close of trading on Monday. AXP currently produces small volumes of oil and gas in Oklahoma, United States.