Egypt's Petroleum Ministry is expected to extend a deal with Russia’s Lukoil for the development of the West Esh El-Milaha concession, a vital resource for the Egyptian energy industry, in the Eastern Desert.
The company's 25-year development contract in the area just expired, leading to this decision, reported Oil & Gas Middle East, a news portal, on Tuesday.
According to the new deal, Lukoil will be provided a concession contract with a five-year term, and the option of renewal will be put to a vote in the Egyptian House of Representatives.
Citing Egypt’s Al Borsa newspaper, the report said Lukoil will continue subsidizing the Esh El-Milaha Petroleum Company, a joint venture between the Russian company and Egyptian interests.
“This includes financing the work programme and covering the costs of the entire Egyptian workforce involved in the project. The ministry highlighted the financial importance of this arrangement, as it saves the Egyptian authority from bearing these significant expenses,” it added.
Lukoil has been a part of the project since 2002.
By Handan Kazanci
Anadolu Agency
energy@aa.com.tr