Russian oil company expands existence in Egypt
(MENAFN) Russian oil giant Lukoil has inked a new agreement with Egypt’s South Valley Egyptian Petroleum Holding Company (Ganope) to begin oil exploration in the Eastern Desert, the Egyptian Ministry of Petroleum and Mineral Resources announced Wednesday. The contract includes conducting 3D seismic surveys over 200 square kilometers and drilling six exploratory wells in South Wadi El-Sahl, a site deemed “promising” due to its closeness to existing infrastructure and processing plants. This proximity is expected to reduce development and operational expenses, officials said.
The agreement supports Egypt’s strategic goal of increasing domestic oil production and lowering petroleum costs by intensifying exploration and drilling efforts. Earlier this year, Lukoil also secured rights to work on the nearby Wadi El-Sahl project, following parliamentary approval of a deal with the Egyptian General Petroleum Corporation.
Former Egyptian petroleum minister Tarek El Molla highlighted Lukoil’s interest in growing its footprint in Egypt’s energy sector, describing the company as a “good partner” exploring new concession areas. Lukoil has been active in Egypt since 1995 and currently holds a 24% share in the Meleiha project in the Western Desert, operated by Italy’s ENI, along with a 50% stake in the West Esh El-Mallaha field in the Eastern Desert.
This latest agreement forms part of Lukoil’s broader African expansion strategy, which includes a cooperation deal signed last September with the Republic of Congo for oil and gas exploration.
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