4 hours ago
3
Lukoil will drill six exploratory wells in the North African state under a new exploration agreement
Russian oil company Lukoil has signed a new agreement with 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 entails carrying out 3D seismic surveys across an area of 200 square kilometers and drilling six exploratory wells in the South Wadi El-Sahl, an area officials described as “promising” thanks to its proximity to existing infrastructure and processing facilities. According to the ministry, the location is expected to lower development and operating costs.
The agreement aligns with Egypt’s strategic objective of maximizing domestic oil production and reducing the cost of petroleum products by intensifying exploration and drilling programs, according to the ministry
Earlier this year, the Russian oil giant also won the right to work on the neighboring Wadi El-Sahl project, following parliamentary approval of a new agreement with Egyptian General Petroleum Corporation.
Last March, a former Egyptian minister of petroleum and mineral resources, Tarek El Molla, noted that the Russian company was interested in expanding its footprint within the country’s energy sector. “They are good partners and they want to expand their business in Egypt, they are discussing new concession areas,” he said, as quoted by TASS.
Lukoil has been operating in Egypt since 1995 and currently holds a 24% stake in the Meleiha project in the Western Desert, operated by Italy’s ENI. The Russian company also owns a 50% stake in the West Esh El-Mallaha field in the Eastern Desert.
The latest agreement is part of Lukoil’s broader strategy to expand its presence across Africa. Last September, the company struck a deal with the Republic of Congo to deepen cooperation on oil and gas exploration.
