Egypt approves $221m of oil exploration deals with foreign firms
RIYADH: Egypt has approved $221 million worth of deals with foreign firms for oil exploration and exploitation in the Western Desert and Gulf of Suez.
A statement issued following a meeting of the the country's Cabinet, chaired by Prime Minister Mostafa Madbouly, said ministers had signed off on five draft petroleum commitment agreements.
The deals involve the Egyptian General Petroleum Corp., the Egyptian Natural Gas Holding Co., and a group of international oil companies.
Egypt's oil and gas sector is rapidly expanding through exploration and global deals, reinforcing its role as a regional energy hub. This aligns with projections from Imarc Group, which forecasts a 4.37 percent annual growth rate for the sector from 2025 to 2033.
The cabinet release stated: 'These agreements cover oil exploration and exploitation in the Northwest Al Maghrah area in the Western Desert, East El Hamad in the Gulf of Suez, East Gemsa Marine in the Gulf of Suez, and the Integrated Research and Development Area in the Western Desert.'
It added: 'They also cover exploration and exploitation of gas and crude oil in the North Damietta Marine area in the Mediterranean Sea.'
The contracts include a non-refundable signature bonus of $31.5 million and require the drilling of at least 24 wells, the cabinet said.
Last month, the cabinet approved two deals allowing the Ministry of Petroleum to sign contracts with foreign firms. One permits South Valley Egyptian Petroleum and Lukoil to operate in South Wadi El-Sahl in the Eastern Desert, while the other authorizes the Egyptian General Petroleum Corporation and Lukoil to explore the adjacent Wadi El-Sahl area.
Egypt holds a key position in global energy markets through the Suez Canal and Suez-Mediterranean pipeline.
Since its 2015 expansion, the Suez Canal has served as a vital route for oil and liquefied natural gas shipments from North Africa and the Mediterranean to Asia. Revenue from these transit points makes up a significant portion of the government's income.
In April, officials reported that Suez Canal revenue fell by nearly two-thirds over the past year, citing regional tensions and Middle East conflicts as major factors disrupting traffic.
The canal remains a critical source of foreign currency, handling around 10 percent of global trade in recent years.
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Arab News
21 hours ago
- Arab News
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Arab News
a day ago
- Arab News
Lebanon aims to lure back wealthy Gulf tourists to jumpstart its war-torn economy
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Arab News
2 days ago
- Arab News
MENA startup funding grows in May as Egypt rebounds
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Khwarizmi Ventures' strategy is designed to place capital early in companies with strong scaling potential ahead of larger funding rounds. Edtech startup Taawoni raises $1.6m to expand training platform Saudi-based education technology company Taawoni has closed a $1.6 million investment round led by M Capital and supported by undisclosed investors. The startup, founded in 2021 by Aliyah Al-Ghubayn, operates a platform focused on cooperative training and professional development. Taawoni enables collaboration between universities and employers to deliver co-op training programs that provide students nearing graduation with real-world work experience. The new funds will be used to drive growth and integrate more deeply into both the education and human resources technology ecosystems across the region. Expansion into new regional markets is also planned.
