Egypt’s cabinet has approved two new concession agreements for oil and gas exploration with a combined minimum investment of about US$85 million, as the government steps up efforts to raise domestic energy production.
The agreements cover exploration and development activities in both offshore and onshore areas, according to a government statement issued after Thursday’s cabinet meeting.
One deal involves exploration and exploitation of natural gas and crude oil in the offshore Lotus area in the Mediterranean Sea. The agreement will be signed between the government, the Egyptian Natural Gas Holding Company and Chevron Egypt Holdings G Ltd.
A second concession agreement covers multiple development zones, including Gemsa and Ras El-Behar in the Eastern Desert, Ras Gharib and its extension in the Gulf of Suez, the South Rafah (Abu Radd) area in the Sinai Peninsula, and Abu Sennan in the Western Desert.
This agreement will be concluded between the government and the General Petroleum Company.
The two deals include a minimum combined investment commitment of around $85 million, with further spending expected as exploration and development activities progress.
The approvals form part of a broader strategy by Egypt’s petroleum ministry to attract fresh investment into the energy sector, accelerate exploration and drilling, and increase domestic oil and gas output.
Officials say boosting local production is key to reducing reliance on imports and easing pressure on foreign currency reserves, while also helping to meet growing domestic energy demand.
The move comes as Egypt seeks to position itself as a regional energy hub, leveraging its infrastructure and location to expand production and exports.
Analysts say renewed investment in exploration could help offset declines in mature fields and support medium-term energy security, although results will depend on successful discoveries and sustained investor interest.
The agreements also signal continued engagement by international energy companies in Egypt’s upstream sector, despite global volatility in energy markets.
Authorities say they remain committed to creating a more attractive investment environment through regulatory reforms and improved payment structures, aimed at encouraging long-term partnerships with global and domestic operators.
