Egypt approves continued oil production from expiring concessions

Egypt’s Cabinet approved continued production from development areas and contracts that have expired or are nearing expiry, citing economically recoverable reserves and the need to maintain current production rates.

The decision was made during the Cabinet’s weekly meeting on Wednesday, chaired by Prime Minister Moustafa Madbouly, following a request from the Ministry of Petroleum and Mineral Resources.

This measure aims to make the most of existing investments and infrastructure and will be implemented under approved regulations. All production extracted during the period will remain under the possession, control, supervision and responsibility of the Egyptian General Petroleum Corporation (EGPC).

According to the Cabinet’s decision, the approval does not constitute an extension or renewal of expired development contracts, nor does it grant contractors or private-sector entities any rights to exploit or manage the areas concerned. Production will continue until the necessary legal and constitutional procedures are completed and laws are issued for the award or re-award of the areas, as applicable.