Russian oil leading firm plans on expanding exitance in Egypt
(MENAFN)
Russian oil giant Lukoil has signed a new agreement with Egypt’s South Valley Egyptian Petroleum Holding Company (Ganope) to begin oil exploration in the Eastern Desert, Egypt’s Ministry of Petroleum and Mineral Resources announced on Wednesday.
Russian oil giant Lukoil has signed a new agreement with Egypt’s South Valley Egyptian Petroleum Holding Company (Ganope) to begin oil exploration in the Eastern Desert, Egypt’s Ministry of Petroleum and Mineral Resources announced on Wednesday.
The deal includes conducting 3D seismic surveys over a 200-square-kilometer area and drilling six exploratory wells in the South Wadi El-Sahl region. Officials described the area as “promising” due to its proximity to existing infrastructure, which is expected to lower both development and operational costs.
The agreement supports Egypt’s broader strategy to boost domestic oil output and cut petroleum product expenses by increasing exploration and drilling activities.
Earlier this year, Lukoil also secured rights to the neighboring Wadi El-Sahl block after Egypt’s parliament approved a separate agreement with the Egyptian General Petroleum Corporation.
Former Petroleum Minister Tarek El Molla stated in March that Lukoil had shown strong interest in expanding its operations in Egypt’s energy sector, describing the firm as a valued partner exploring new opportunities in the country.
Lukoil has operated in Egypt since 1995 and currently holds a 24% stake in the Meleiha field in the Western Desert (operated by Italy’s ENI) and a 50% share in the West Esh El-Mallaha field in the Eastern Desert.
This latest deal also aligns with Lukoil’s broader push to increase its footprint in Africa. In September 2024, the company signed an agreement with the Republic of Congo to enhance cooperation in oil and gas exploration.
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