Egypt's parliament approved four oil and gas exploration and development agreements on Wednesday, including a North Sinai project involving Franco-British independent producer Perenco.
Egypt is looking to bolster domestic energy production that has struggled to keep pace with growing demand while regional tensions tighten global LNG markets.
The approvals cover exploration and production activities in North Sinai, the Nile Delta, the Mediterranean and Egypt's Eastern Desert, Egyptian media reported.
One of the agreements allows the state-owned Egyptian Natural Gas Holding Company (EGAS) and Perenco North Sinai Petroleum Inc. to explore the Al-Fayrouz onshore area of North Sinai.
Perenco North Sinai Petroleum, a subsidiary of Egypt Kuwait Holding, has operated the North Sinai concession since 2014. The Al-Fayrouz block, awarded in June 2025 through EGAS's 2024 global bid round, is a new onshore frontier for the company, which plans to conduct a 3D seismic survey and drill one exploratory well.
Oil markets remain focused on Middle East security risks. Reuters reported this month that Iran had asked the Iran-backed Houthis to prepare to shut the Bab al-Mandab strait should the United States attack Iranian power infrastructure, highlighting the vulnerability of key maritime routes for global energy trade.
(Reuters)