Monday, 25 May 2026
Egypt signs oil exploration deal with Russia’s Lukoil to attract new investments
In a fresh step to attract further energy investment, Egypt’s Ministry of Petroleum and Mineral Resources has signed a new exploration and production agreement for oil in the South Wadi Al-Sahl region of Egypt’s Eastern Desert. The agreement, witnessed by Minister Eng. Karim Badawi, marks another important milestone in Egypt’s ongoing strategy to meet domestic energy needs through expanding production and encouraging international partnerships.
The new deal is between South Valley Egyptian Petroleum Holding Company (Ganope) and Russia’s Lukoil Overseas Egypt Limited. Under the terms, the companies will carry out a comprehensive work program, including a 3D seismic survey covering 200 square kilometers, as well as drilling six exploratory wells during the search phase.
South Wadi Al-Sahl is considered a promising area for exploration, due to its proximity to existing development zones, production lines, and processing facilities—factors that help reduce drilling and development costs and streamline operations.
This agreement signals Lukoil’s growing presence in Egypt’s oil sector. The company was also awarded the adjoining Wadi Al-Sahl development zone in Egypt’s recent mature fields bid round. Lukoil plans an integrated program of exploration and development in both the South Wadi Al-Sahl and Wadi Al-Sahl areas, while also maintaining operations in the neighboring West Ash Mellaha development. Meanwhile, Lukoil continues its partnership with Eni in the Meleiha Integrated Development in Egypt’s Western Desert—an area which has recently seen a number of successful discoveries.
Minister Badawi emphasized that this agreement demonstrates Egypt’s commitment to maximizing the value of its natural resources and broadening the geographic scope of its exploration and production activities. These efforts are vital to ensuring energy security for Egyptian citizens and continuing to attract foreign investment.
The signing ceremony was attended by top energy officials and experts from both Egypt and Lukoil, reinforcing the spirit of international cooperation and partnership that drives the country’s petroleum sector forward.