Egypt has signed a new oil and gas exploration agreement with Terra Petroleum, marking the British firm’s first entry into the country’s upstream energy sector, as Cairo steps up efforts to attract foreign investment and lift hydrocarbon output.
The deal, signed between the Egyptian General Petroleum Corporation and Terra Petroleum, covers the North West Moghra concession in Egypt’s Western Desert. It includes initial investments of about $6.5mn, according to a statement from the Ministry of Petroleum and Mineral Resources.
Under the agreement, Terra plans to drill three exploration wells and carry out 2D and 3D seismic surveys, adding to a growing pipeline of exploration activity in the Western Desert, one of Egypt’s most prolific oil and gas regions.
Petroleum and Mineral Resources Minister Karim Badawy said the agreement reflects rising confidence among international energy companies in Egypt’s investment climate, citing regulatory reforms and efforts to accelerate exploration and production.
The signing comes as Egypt seeks to shore up domestic energy supplies, reduce import dependence and sustain output growth by drawing new international players into its upstream sector.
