Egypt Signs $121M Oil and Gas Exploration Deals
Egypt has signed three new oil and gas exploration agreements worth more than $121 million. The deals cover areas in the Western Desert, the Gulf of Suez, and North Sinai, according to a statement released by the Ministry of Petroleum and Mineral Resources on Sunday.
New exploration agreements
The first deal is with Egypt’s Brenco. The company will drill three offshore wells in North Sinai, with an investment of about $46 million. The second agreement is with Dragon Oil, a company from the United Arab Emirates. Dragon Oil will drill three wells in the East Hamad area near the Gulf of Suez, investing about $40.5 million. The third deal is with the US-based company Apache. Apache will drill 14 wells in the Western Desert, investing about $35 million.
Together, these projects are expected to boost Egypt’s oil and gas resources. Minister of Petroleum Karim Badawi said the signings are part of the government’s plan to increase local production and meet the needs of the domestic market. He explained that more exploration is necessary to secure energy for the country’s growing population and industries.
Focus on boosting production
These agreements follow other recent steps by the ministry. Just last week, Egypt signed a memorandum of understanding with BP, the British energy company. The agreement will allow BP to study opportunities to drill five new natural gas wells in the West Nile Delta, an important area in the Mediterranean Sea.
The government’s long-term goal is to raise natural gas production to 6.6 billion cubic feet per day by 2027. At present, Egypt produces around 4.1 billion cubic feet per day. The extra production is needed to cover the country’s increasing demand for electricity.
Declining output challenges
Egypt was once producing more than 6.6 billion cubic feet per day. However, production has fallen to about 4.1 billion cubic feet per day in recent years. A key reason for this decline is reduced output at the Zohr field in the Mediterranean, which is one of the country’s largest gas fields.
Falling production has created challenges for the government, which needs to ensure that households, factories, and power stations have a steady supply of energy. By signing new deals and working with international companies, Egypt hopes to reverse the decline and secure new sources of oil and gas.
Energy strategy for the future
Egypt’s energy strategy focuses on three main goals: increasing domestic oil and gas production, attracting foreign investment, and expanding exploration in both land and offshore areas. The recent agreements show the country’s determination to strengthen its energy sector despite global challenges in the industry.
With a growing population and rising energy demand, the government sees oil and gas as key drivers of economic stability. The $121 million in new deals, along with future projects, are expected to play a major role in securing Egypt’s energy future.
Published: 15th September 2025
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