Prime Highlights:
- Egypt has signed three new oil and gas deals worth over $121 million with international companies, boosting exploration and drilling in key areas.
- The agreements reflect growing international confidence in Egypt’s energy sector and support the country’s plan to attract foreign investment.
Key Facts:
- Over 60 international companies currently operate in 183 oil and gas sites across Egypt, including the Mediterranean Sea, Nile Delta, Western and Eastern Deserts, Sinai, and Upper Egypt.
- The deals include investments and signing bonuses totaling more than $121 million, with projects expected to increase domestic energy production and strengthen Egypt’s role as a regional energy hub.
Key Background:
Egypt is boosting its energy sector by signing three oil and gas deals worth over $121 million with international companies. Such agreements will facilitate new exploration and drilling in the important regions, and the growing confidence in the energy industry in Egypt.
The agreements were signed by the Egyptian General Petroleum Corporation (EGPC) and its international partners, and were witnessed by Karim Badawi, Minister of Petroleum and Mineral Resources. The deals are part of Egypt’s plan to attract foreign investment and expand oil and gas activities.
The first agreement reassigned the North Sinai offshore area to Perenco Egypt, with a total investment of $46 million for drilling three wells and a signing bonus of $1 million. The deal was finalized in the presence of senior executives from Perenco Egypt and Egypt Kuwait Holding Company.
The second deal is the East El Hamad region, located within the Gulf of Suez, with the participation of the Dubai-based Dragon Oil, which won the EGPC bidding process. This project includes $40.5 million in investment for three wells and a signing bonus of $4.5 million.
The third agreement, signed with Apache Corporation, covers an integrated exploration and development area in the Western Desert. Apache will add five new exploration blocks, invest $35 million in drilling 14 wells, and provide a $25 million signing bonus.
Minister Karim Badawi highlighted that these agreements reflect international companies’ growing trust in Egypt’s petroleum sector and underline the ministry’s success in offering attractive opportunities for exploration. These projects are expected to boost Egypt’s oil and gas production and ensure the country can meet its own energy needs.
Over 60 international companies are working at 183 oil and gas sites across Egypt, including the Mediterranean Sea, Nile Delta, Western and Eastern Deserts, Sinai, and Upper Egypt. The recent permits to firms such as Lukoil and South Valley Egyptian Petroleum reveal that Egypt is keen on the growth of its energy industry.
These new agreements help Egypt strengthen its position as a regional energy hub, create more growth opportunities, attract global investment, and meet local energy needs.
