Egypt approves oil, gas and Perenco North Sinai Project deals

Egypt's Parliament approved four oil and gas exploration agreements and development agreements on Wednesday. This included a project in North Sinai involving the?FrancoBritish producer?Perenco. Egypt is looking to boost domestic energy production, which has been struggling to keep up with the growing demand. Regional tensions are also tightening global LNG markets.

Egyptian media reported that the approvals covered?exploration activities and production in North Sinai, Nile Delta, the Mediterranean and Egypt?s Eastern Desert.

The state-owned Egyptian Natural Gas Holding Company and 'Perenco North Sinai Petroleum Inc.' have signed an agreement to explore the Al-Fayrouz area of North Sinai.

Perenco North Sinai Petroleum is a subsidiary company of Egypt Kuwait Holding and has been operating the North Sinai concession in Egypt since 2014. Al-Fayrouz, a block awarded to the company in June 2025 'through EGAS 2024 global bidding round', represents a new frontier onshore for it. The company plans to carry out a 3D seismic -survey, and drill an exploratory well. Oil markets are still focused on Middle East security risks. Reports this month stated that Iran had instructed the Iran-backed Houthis in order to close the Bab al-Mandab Strait if the United States attacked?Iranian energy infrastructure. This highlighted the vulnerability of the key maritime routes used for global trade. (Reporting by Zakarya Meliani Editing by Alexandra Hudson)

(source: Reuters)