Shell (SHEL) has asked to withdraw from the largest oilfield in Syria and transfer its share to Syria's state-owned operators, Reuters reported Monday, citing head of the Syrian Petroleum Company, Youssef Qeblawi.

The al-Omar oilfield, which operated as a joint venture between the Syrian Petroleum Company and Shell, came under government control over the weekend after being held by Kurdish forces for nearly a decade, according to the report.

The country is still negotiating terms of a financial settlement with Shell so the field can be fully operated by state-owned Syrian companies "within a very short period," Qeblawi said, adding that repairs and modernization were required for it to be operable.

Other energy companies including ConocoPhillips (COP), Chevron (CVX) and HKN Energy have also expressed interest in the country's energy sector, Qeblawi told Reuters.

Shell did not immediately respond to MT Newswires' request for comment on the matter.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)