The signing ceremony was attended by a number of petroleum sector leaders, including: Engineer Ehab Ragai, Deputy Minister of Petroleum for Production, Engineer Salah Abdel Karim, Chairman of the Egyptian General Petroleum Corporation, Engineer Ashraf Bahaa, Chairman of the South Valley Egyptian Petroleum Holding Company, Engineer Moataz Atef, Undersecretary of the Ministry for the Technical Office and the official spokesperson for the Ministry, Dr. Samir Raslan, Undersecretary of the Ministry for Agreements and Exploration, Dr. Mohamed Radwan, Vice Chairman of the South Valley Egyptian Petroleum Holding Company, Andrey Lyakhov, President of the company in Egypt, Engineer Khaled Abdel Salam, Chairman of Esh El-Mallaha Company, and a number of leaders from the South Valley Egyptian Petroleum Holding Company and Lukoil.
This agreement aligns with the Ministry of Petroleum's strategy, which focuses on providing citizens with petroleum products at the lowest cost through increased production and intensified drilling and exploration programs. The agreement was signed between the Egyptian South Valley Petroleum Holding Company and the Russian company Lukoil Overseas Egypt Limited. The work program includes conducting a 3D seismic survey over an area of 200 square kilometers, in addition to drilling six exploratory wells during the exploration period.
The South Wadi El-Sahl area is considered a promising area due to its proximity to existing development areas, as well as its proximity to production lines and processing plants, which contributes to reducing drilling and development costs. This agreement reflects Lukoil's expansion into the Egyptian petroleum market, as the company also won the Wadi El-Sahl development area, which was offered in the recent auction for mature fields.
The company intends to implement an integrated exploration and development program in both the South Wadi El Sahl and Wadi El Sahl areas, in addition to continuing its operations in the adjacent West Esh El Mallaha development area. It also continues its partnership with Eni in the integrated Meleiha development area in the Western Desert, where it has recently achieved a number of successful discoveries.
Badawi stressed that this agreement falls within the framework of the state's efforts to maximize the use of natural resources and expand the geographic scope of research and exploration activities, contributing to securing local market needs and enhancing opportunities to attract foreign investment.