Egypt’s Cabinet has approved five major energy agreements worth over $252 million, including $221.23 million in direct investments and $31.5 million in non-refundable grants, to advance the country’s oil and gas exploration and production efforts.
The decisions were made during the 43rd Cabinet meeting, chaired by Prime Minister Mostafa Madbouly, as part of Egypt’s broader strategy to strengthen its energy sector and attract foreign capital.
The newly approved deals involve strategic partnerships between the Egyptian General Petroleum Corporation (EGPC), the Egyptian Natural Gas Holding Company (EGAS), and several international oil companies.
These agreements target exploration and drilling operations in high-potential zones such as the Western Desert and the Gulf of Suez.
The agreements will involve the drilling of at least 24 wells.
The agreements include a minimum investment of $221.23 million and a $31.5 million non-refundable signature bonus, reflecting the confidence of global partners in Egypt’s energy potential.
These latest developments are part of Egypt’s ongoing ambition to become a regional energy hub, leveraging its strategic location, infrastructure, and bilateral cooperation to boost energy trade and security.
The government is actively encouraging foreign direct investment to revitalize domestic production and offset declining gas output.
The Ministry of Petroleum and Mineral Resources also recently announced three new oil and gas discoveries in the Western Desert and Gulf of Suez.
In a related development, Chevron is currently in talks with Egyptian authorities to expand its operations in the West Star block in the Mediterranean.
The American oil giant is also awaiting results from the 2024 licensing round, where it submitted bids for two additional offshore blocks.
To reassure international stakeholders, Egypt recently paid $1.2 billion to foreign oil companies to settle part of its outstanding arrears, as the country grapples with a drop in natural gas output to 4.2 billion cubic feet per day—below domestic demand.
These energy developments signal renewed activity in Egypt’s upstream oil and gas sector, thanks to the government’s resolve to secure energy security and enhance foreign investment and long-term economic resilience.
