Media reports: BRICS nation awards exploration rights to Russian oil titan
Lukoil is set to invest a minimum of $22.5 million in the South Wadi Al-Sahel concession in Egypt over the next six years, as reported by Al Mal newspaper. Read Full Article at RT.com.
TroibNews 
Lukoil has been granted the rights to explore and develop the South Wadi Al-Sahel concession in Egypt, as reported by the newspaper Al Mal. This decision follows recent sanctions placed on the Russian oil company by the US a month prior.
According to Al Mal's report, Lukoil will invest at least $22.5 million over six years into the concession. The award of this concession deviates from traditional bidding processes and was made through a direct agreement between Egypt’s Ministry of Petroleum and Lukoil.
As of now, Lukoil has not confirmed the deal through the Russian media.
The reported agreement is part of a series of oil and gas development projects that the Egyptian government finalized earlier this month with various foreign companies, amounting to roughly $225.3 million. These projects are set to take place in areas like the Western Desert and North Sinai regions.
Lukoil ranks among the largest publicly traded oil and gas companies globally, contributing around 2% to the world’s oil production, and it holds the status of Russia’s largest privately owned company based on revenue.
Last month, the US expanded sanctions on the Russian energy sector, including measures against Lukoil and its CEO, Vadim Vorobyov. In response to these restrictions, the company appointed a new CEO. Lukoil's founder, Vagit Alikperov, had already been sanctioned by the US in 2022, following the intensification of the conflict in Ukraine.
Lukoil has been active in Egypt’s energy sector for over twenty years, currently operating the West Esh El-Mallaha production project in the Eastern Desert with a 50% stake. The company also holds a 24% stake in the Meleiha project located in the Western Desert.
Egypt joined BRICS in 2024, alongside the United Arab Emirates, Ethiopia, Iran, and Indonesia. The group, which originally consisted of Brazil, Russia, India, China, and South Africa, has seen Egypt maintain a neutral position regarding the Ukraine conflict, advocating for dialogue and diplomatic resolutions.
James del Carmen contributed to this report for TROIB News
According to Al Mal's report, Lukoil will invest at least $22.5 million over six years into the concession. The award of this concession deviates from traditional bidding processes and was made through a direct agreement between Egypt’s Ministry of Petroleum and Lukoil.
As of now, Lukoil has not confirmed the deal through the Russian media.
The reported agreement is part of a series of oil and gas development projects that the Egyptian government finalized earlier this month with various foreign companies, amounting to roughly $225.3 million. These projects are set to take place in areas like the Western Desert and North Sinai regions.
Lukoil ranks among the largest publicly traded oil and gas companies globally, contributing around 2% to the world’s oil production, and it holds the status of Russia’s largest privately owned company based on revenue.
Last month, the US expanded sanctions on the Russian energy sector, including measures against Lukoil and its CEO, Vadim Vorobyov. In response to these restrictions, the company appointed a new CEO. Lukoil's founder, Vagit Alikperov, had already been sanctioned by the US in 2022, following the intensification of the conflict in Ukraine.
Lukoil has been active in Egypt’s energy sector for over twenty years, currently operating the West Esh El-Mallaha production project in the Eastern Desert with a 50% stake. The company also holds a 24% stake in the Meleiha project located in the Western Desert.
Egypt joined BRICS in 2024, alongside the United Arab Emirates, Ethiopia, Iran, and Indonesia. The group, which originally consisted of Brazil, Russia, India, China, and South Africa, has seen Egypt maintain a neutral position regarding the Ukraine conflict, advocating for dialogue and diplomatic resolutions.
James del Carmen contributed to this report for TROIB News
