Egypt greenlights new oil exploration deals with Russia’s Lukoil

The Egyptian Parliament has endorsed two significant oil agreements, authorizing the Ministry of Petroleum and Mineral Resources to formalize contracts with Russian energy giant Lukoil, further cementing Cairo’s strategic alliance with Moscow in the energy sector.

The first deal grants exploration and production rights to Lukoil Overseas Egypt Ltd., in partnership with the South Valley Egyptian Petroleum Holding Company, in the South Wadi El-Sahl region of the Eastern Desert. A second agreement permits Lukoil Egypt Limited, alongside the Egyptian General Petroleum Corporation, to carry out similar operations in the adjacent Wadi El-Sahl area.

These concessions lie in proximity to existing oilfields where Lukoil has a well-established presence, including West Esh El Mallaha and its extension, reinforcing a longstanding operational footprint in Egypt. Since entering the Egyptian market in 1995, Lukoil has cultivated a portfolio of productive ventures, most notably in the Meleiha oil block, where it holds a 24% stake under the stewardship of Italian energy firm Eni. The years between 2007 and 2014 marked a fruitful era, with the discovery of multiple oilfields, including North Nada, Arcadia, and Rosa North, where commercial production is ongoing.