Cairo, May 3, 2025 – Egypt’s parliament has approved two new oil exploration and production agreements, paving the way for the Ministry of Petroleum and Mineral Resources to finalize contracts with Russian energy giant Lukoil. The deals mark a significant step in Egypt’s efforts to boost foreign investment in its oil and gas sector.
Expanding Lukoil’s Footprint in Egypt.
The first agreement grants exploration and production rights in the South Wadi El-Sahl region of the Eastern Desert to a joint venture between South Valley Egyptian Petroleum Holding Company and Lukoil Overseas Egypt Ltd.
A second deal authorizes the Egyptian General Petroleum Corporation (EGPC) and Lukoil Egypt Ltd. to operate in the neighboring Wadi El-Sahl area. These agreements are part of Egypt’s broader strategy to attract new investments into its upstream oil and gas industry, strengthening energy security and economic growth.
Lukoil’s Longstanding Presence in Egypt.
Lukoil, one of Russia’s largest oil companies, entered the Egyptian market in 1995 and has since expanded its operations. The company currently holds interests in several key projects, including:
• The Meleiha concession
• The West Esh El Mallaha (WEEM) field
• The WEEM Extension
The new agreements reinforce Lukoil’s commitment to Egypt’s energy sector, leveraging its expertise in exploration and production to tap into the country’s hydrocarbon potential.
Egypt’s Push for Energy Investment.
Egypt has been actively seeking foreign partnerships to enhance oil and gas exploration, particularly in the Eastern Desert and the Mediterranean. The government aims to increase production, reduce reliance on imports, and position itself as a regional energy hub.
With global energy demand rising, Egypt’s collaboration with major players like Lukoil underscores its strategic importance in the international oil market.
Emebet Asefa
Correspondent
Source: African Energy Council
