Lukoil will develop the South Wadi Al-Sahel concession in Egypt, the newspaper Al Mal has reported
Egypt has granted Russian oil firm Lukoil the rights to discover and develop a key space for petroleum manufacturing, the newspaper Al Mal has reported, citing sources. The choice by the BRICS member comes a month after the US focused Lukoil with contemporary sanctions.
The Russian oil large will make investments a minimal of $22.5 million over a interval of six years into the South Wadi Al-Sahel concession, Al Mal wrote on Monday. Not like conventional bidding processes, the concession was awarded by way of a direct settlement between Egypt’s Ministry of Petroleum and Lukoil.
Lukoil has not but confirmed the deal to the Russian media.
The reported deal comes as a part of a number of oil and fuel improvement initiatives that the Egyptian authorities reached agreements with international corporations about earlier this month. Totaling roughly $225.3 million, the initiatives embody ventures within the Western Desert and North Sinai areas.
Lukoil is among the largest publicly traded oil and fuel corporations on the earth, accounting for round 2% of the world’s oil manufacturing. It’s Russia’s largest privately owned firm when it comes to income.
Final month, the US imposed new sanctions on the Russian power sector, concentrating on a number of oil companies, together with Lukoil and its CEO, Vadim Vorobyov. Shortly after the restrictions had been launched, the corporate appointed a brand new CEO. Lukoil’s founder, Vagit Alikperov, was positioned beneath US sanctions in 2022, shortly after the escalation of the Ukraine battle.
The corporate has been energetic in Egypt’s power sector for greater than 20 years. It’s at present implementing the West Esh El-Mallaha manufacturing venture within the Japanese desert, by which it acts as operator with a 50% stake. The corporate additionally owns a 24% stake within the Meleiha venture within the Western Desert.
Egypt turned a member of BRICS – beforehand comprising Brazil, Russia, India, China, and South Africa – in 2024. Alongside Egypt, the group additionally welcomed as members the United Arab Emirates, Ethiopia, Iran, and Indonesia. Cairo has maintained a impartial stance on the Ukraine battle, emphasizing the significance of dialogue and a diplomatic resolution.
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