Russian oil company inks deal with South Valley Egyptian Petroleum Holding Company

(MENAFN) Russian energy giant Lukoil has entered a new agreement with South Valley Egyptian Petroleum Holding Company (Ganope) to launch oil exploration efforts in Egypt’s Eastern Desert, the country’s Ministry of Petroleum and Mineral Resources announced on Wednesday.

The partnership involves conducting 3D seismic surveys over a 200-square-kilometer area and drilling six exploratory wells in the South Wadi El-Sahl region. Officials described this zone as “promising” due to its close proximity to existing infrastructure and processing plants, which is expected to help reduce development and operational expenses.

This deal supports Egypt’s strategic aim to increase domestic oil output and lower petroleum product costs by ramping up exploration and drilling activities, according to the ministry.

Earlier this year, Lukoil secured rights to develop the adjacent Wadi El-Sahl project following parliamentary approval of a separate agreement with the Egyptian General Petroleum Corporation.

Back in March, a former Egyptian petroleum minister highlighted Lukoil’s keen interest in expanding its footprint in Egypt’s energy sector. “They are good partners and they want to expand their business in Egypt, they are discussing new concession areas,” he noted.

Lukoil has operated in Egypt since 1995 and currently holds a 24% share in the Meleiha project in the Western Desert, managed by Italy’s ENI, alongside a 50% stake in the West Esh El-Mallaha field in the Eastern Desert.

This recent agreement aligns with Lukoil’s wider African expansion strategy, which includes a deal signed last September with the Republic of Congo to strengthen cooperation in oil and gas exploration.

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