The government of Egypt has sealed three new investment agreements worth more than US $121M aimed at boosting oil and gas exploration across key regions of the country.
The Ministry of Petroleum confirmed the report and said the agreements were finalized with Parenco Egypt, Dubai-based Dragon Oil, and Apache Corporation, with investments valued at approximately US $46M, US $40.5M, and US $35M respectively. The deals cover exploration activities in the Western Desert, the Gulf of Suez, and offshore North Sinai.
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Oil and gas sector in Egypt
Parenco Egypt, a subsidiary of Egypt Kuwait Holding (EKH), secured the re-award of the North Sinai offshore block and committed to drilling three wells. Dragon Oil, which has steadily expanded its footprint in Egypt, will also drill three wells, while U.S.-based Apache will focus on the Western Desert, where it plans to explore five new areas and drill up to 14 wells. Officials highlighted that these projects will contribute to Egypt’s broader strategy of enhancing domestic energy production, reducing import dependency, and attracting foreign capital into the sector.
The oil and gas sector in Egypt is one of the country’s most important economic pillars, playing a central role in revenue generation, foreign exchange earnings, and energy security. Egypt is recognized as one of Africa’s leading producers of hydrocarbons, with oil and natural gas contributing significantly to national GDP. The industry also provides vital feedstock for electricity generation, industrial development, and petrochemical production, making it an engine for broader economic growth.
Oil production in Egypt averages around 560,000 to 600,000 barrels per day, drawn from key regions such as the Western Desert, Gulf of Suez, Sinai, and offshore fields in the Mediterranean. Proven crude oil reserves are estimated at more than 3 billion barrels, with ongoing exploration aimed at unlocking additional resources. International companies, including Apache, ENI, BP, and Dragon Oil, have partnered with the Egyptian General Petroleum Corporation (EGPC) to boost exploration and production, reflecting the sector’s continued attractiveness to foreign investors.
