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Egypt expands oil exploration in Western Desert with China

Mar 12, 2024 Business, News, Partnerships, Trade

The Egyptian Cabinet of Ministers approved bills that will allow the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Gas Holding Company (EGAS) to enter into agreements with national and international companies in the fuel and energy complex.

We previously wrote in an article about the Oil and Gas Sector in Egypt that the growth rate of the oil and gas sector in Egypt amounted to 24% of the country’s GDP in 2019-2020, which is the highest among other sectors of the Egyptian economy. The issue of oil production is acute, and in addition to national companies, foreign companies are also actively involved in oil exploration and production.

In an article about the oil and gas sector in Egypt, we wrote that many Western companies are involved in oil production under concession agreements.

In March 2024, the Egyptian Cabinet of Ministers approved bills to allow the conclusion of agreements and contracts in the field of exploration and development of oil fields:

• Agreement between the Ministry of Petroleum and Mineral Resources, EGPC, Khalda Petroleum Company (Apache) and Tharwa Petroleum Company on commitments for oil exploration and exploitation in the Siwa region in the West of the country.

• Concession agreement for oil exploration and development in the Yadma/Alamein region of the Western Desert between EGPC and IPR Trans Oil Corporation.

• Agreement on oil production commitments in the southwestern El Alamein region of the Western Desert between EGPC and HBS International Egypt Limited.

• Agreement on commitments for the search and development of oil in the East Ghazalat region in the Western Desert between EGPC and North Petroleum International Company.

• Contract for exploration and development of gas and oil in the New Mansala area of the Nile Delta between EGAS and Dana Gas Egypt Limited.

Notably, North Petroleum International Company (NPIC) is a Chinese energy company whose founder is Zhenhua Oil. NPIC has been operating in Egypt since 2014 and is involved in oil and gas exploration and production in the country through its joint venture Petro Amir Petroleum Company. But since early 2023, NPIC representatives have been coming to Egypt to expand their activities in Egypt’s oil and gas sector. As we can see, they do it well.

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