(MENAFN) Egypt has granted Russian oil company Lukoil exploration rights for a key petroleum-producing area, according to Al Mal newspaper. This decision comes one month after the US imposed fresh sanctions on Lukoil. Under the agreement, Lukoil is set to invest at least $22.5 million over six years in the South Wadi Al-Sahel concession. Unlike traditional bidding processes, the deal was made through a direct agreement between Egypt’s Ministry of Petroleum and Lukoil.

The deal is part of a larger set of oil and gas development projects, valued at $225.3 million, that Egypt has secured with foreign companies. These projects focus on the Western Desert and North Sinai regions.

Lukoil, one of the largest publicly traded oil companies globally, accounts for about 2% of world oil production. It is Russia's largest privately owned company by revenue. Following US sanctions targeting Lukoil and its CEO, Vadim Vorobyov, the company appointed a new CEO. Lukoil’s founder, Vagit Alikperov, had been sanctioned in 2022 after the escalation of the Ukraine conflict.

Lukoil has operated in Egypt’s energy sector for over two decades, with stakes in several production projects, including the West Esh El-Mallaha project and the Meleiha project.

Egypt, which joined BRICS in 2024, has maintained a neutral stance on the Ukraine conflict, emphasizing the importance of dialogue for a peaceful resolution.

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