Russian oil giant to expand presence in Egypt
Russian oil company Lukoil has signed a new agreement with South Valley Egyptian Petroleum Holding Company (Ganope) to begin oil exploration in the Eastern Desert, Egypt's Ministry of Petroleum and Mineral Resources announced on Wednesday.
The deal entails carrying out 3D seismic surveys across an area of 200 square kilometers and drilling six exploratory wells in the South Wadi El-Sahl, an area officials described as 'promising' thanks to its proximity to existing infrastructure and processing facilities. According to the ministry, the location is expected to lower development and operating costs.
The agreement aligns with Egypt's strategic objective of maximizing domestic oil production and reducing the cost of petroleum products by intensifying exploration and drilling programs, according to the ministry
Earlier this year, the Russian oil giant also won the right to work on the neighboring Wadi El-Sahl project, following parliamentary approval of a new agreement with Egyptian General Petroleum Corporation.
Last March, a former Egyptian minister of petroleum and mineral resources, Tarek El Molla, noted that the Russian company was interested in expanding its footprint within the country's energy sector. 'They are good partners and they want to expand their business in Egypt, they are discussing new concession areas,' he said, as quoted by TASS.
Lukoil has been operating in Egypt since 1995 and currently holds a 24% stake in the Meleiha project in the Western Desert, operated by Italy's ENI. The Russian company also owns a 50% stake in the West Esh El-Mallaha field in the Eastern Desert.
The latest agreement is part of Lukoil's broader strategy to expand its presence across Africa. Last September, the company struck a deal with the Republic of Congo to deepen cooperation on oil and gas exploration.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Russia Today
4 hours ago
- Russia Today
Africa peace deal brokered by Trump tied to US resource push
Rwanda and the Democratic Republic of the Congo have signed a peace agreement to end a decades-long conflict, which US President Donald Trump says gives the US rights to local mineral wealth. Congolese officials have long accused Rwanda of backing militant groups in the mineral-rich eastern DR Congo and smuggling resources. Tensions escalated after M23 militants seized mining hubs, including Goma and Bukavu, reportedly killing thousands. Kigali denied supporting militants, despite UN and international backing for Kinshasa's claims. The agreement was signed on Friday in Washington by both nations' foreign ministers and US Secretary of State Marco Rubio. It pledges a 90-day Rwandan troop withdrawal from the DR Congo, outlines disarmament and reintegration steps, and sets up a joint security mechanism. Rwandan Foreign Minister Olivier Nduhungirehe called the deal a 'turning point.' The DR Congo's Therese Kayikwamba Wagner, however, was more cautious, saying it must be followed by disengagement. GOD BLESS THE PEOPLE OF RWANDA AND THE CONGODR Congo and Rwanda sign Trump-mediated PEACE deal to END conflict Applause breaks out as Rubio, envoys formalize US-brokered agreement@ The agreement also creates a 'regional economic integration framework' linking Rwanda, DR Congo, and the US. Trump, speaking ahead of the signing, said the deal would give the US 'a lot of the mineral rights from the [Democratic Republic of] Congo.' While no specific transfers are mentioned in the text, the agreement promises to 'expand foreign trade and investment' in regional mineral supply chains and launch joint end-to-end 'mineral value chains' that 'link' both countries with the US government and US investors within three months. #rdc#rwanda: President Trump confirms that the United States will obtain "a large portion of Congo's mineral rights" as part of the peace agreement between the DRC and Rwanda signed this Friday. Sources told Reuters that a separate agreement securing new US rights to Congolese minerals is expected at a later date. It reportedly depends on the outcome of Qatar-mediated talks between the DR Congo and M23 in Doha. The talks are separate from US mediation but are seen as key to ending the hostilities, as they involve direct negotiations with M23, a prominent armed group in the region. Qatar reportedly presented a draft peace plan to the DR Congo and M23 earlier this month, with both sides expected to consult their leaders before resuming talks. The mineral-rich region holds the world's largest cobalt reserves, and contains significant deposits of gold, lithium, copper, and coltan. Following the signing, Trump hosted both African envoys in the Oval Office and invited their presidents, Felix Tshisekedi and Paul Kagame, to Washington for a future round of agreements. The deal is part of Trump's broader push to secure critical mineral access by any means, even through conflict mediation efforts. On Thursday, the US struck a deal with China to resume rare-earth exports, which were frozen amid a tariff standoff. The Rwanda-DR Congo agreement also follows another Trump-linked minerals deal with Kiev in April, which was presented as repayment for past US aid in Ukraine's conflict with Russia. Though the repayment clause was dropped from the final agreement, Trump said the US could 'in theory' recover 'much more' than it spent.
Russia Today
a day ago
- Russia Today
The US has just declared economic war on Africa. It will backfire
In April, US President Donald Trump implemented new tariff policies, imposing a maximum of 50% on goods entering America from African countries. They previously enjoyed free access benefits from the Africa Growth and Opportunity Act (AGOA), which, according to the Center for Global Development, used to provide sub-Saharan African countries with duty-free access to over 7,000 products. In 2023, the Office of the US Trade Representative reported that the US imported goods worth $9.7 billion under the AGOA, with South Africa ($14.0 billion), Nigeria ($5.7 billion), Ghana ($1.7 billion), Angola ($1.2 billion), and Cote d'Ivoire ($948 million) being Africa's biggest exporters. But with a 10% universal tariff now imposed on all African nations, experts believe the AGOA may have come to an end. However, the same experts also say Africa's market of 1.4 billion people can serve as the best response to external economic shocks caused by Trump's trade tariffs. Dr. Francis Owusu, a trade economist at the University of Ghana, notes that with the new tariffs, 'Trump not only made AGOA lame, but also prepared it for eventual death.' 'There is no way AGOA will be beneficial to African countries with the new tariffs in place. It makes no sense at all,' Dr. Owusu said. 'Trump's tariff policy rendered AGOA meaningless.' Dr. Owusu says that, instead of lamenting over Trump's tariff actions, African leaders must breathe life into the African Continental Free Trade Area (AfCFTA). 'What Africa needs is regional trade and economic resilience. With a population and market of over one billion people, African leaders must shift focus and use regional instruments like AfCFTA to build and insulate the continent's economy,' he told RT. According to the expert, by imposing new trade tariffs on African exports, 'Trump did Africa a big favor.' Launched in 2021, the AfCFTA boasts an estimated combined GDP of $3.4 trillion and a market of 1.4 billion people, making it the world's largest free trade area by number of participating countries. But despite the existence of the AfCFTA, intra-African trade remains below par. As of April 2025, it accounted for only 18% of total continental trade. According to Afreximbank's Africa Trade Report 2024, intra-African trade in 2023 was $192.2 billion, a 3.2% increase from the previous year. In the same year, the share of formal intra-African trade increased from 13.6% in 2022 to 14.9%. Projections by the UN Economic Commission show that a full implementation of the AfCFTA could push intra-African trade to 35% by 2045. Faith Atieno, a trade policy analyst with Kenya's Institute of Economic Affairs, argues that a lack of political will and trust among member states has hampered the full implementation of the AfCFTA. 'Africa must address existing structural barriers and disjointed customs regulations if it wants to realize its full trade potential,' Atieno told RT. She added that to unlock its dormant trade power, the continent should also invest in the enhancement of its industrial capacity and logistics infrastructure. 'For AfCFTA to succeed, Africa must start trading as a continent and invest in regional value chains. Member states must stop prioritizing trade deals with Europe and the US,' she said. According to Atieno, there is no reason why a country like Kenya cannot export its textiles and horticultural products to countries like Nigeria, Egypt, and Ghana. 'Why should African nations continue having trade barriers among themselves when they can all benefit from this ripe and huge market?' In the wake of Trump's actions, African countries are taking insulating measures. In Nigeria, the Export Promotion Council has already announced a new policy to ease bureaucratic barriers and enhance intra-African trade for its textiles, cocoa, and pharmaceutical products. Regarded as Africa's largest economy, Nigeria is among the member states that have lagged in the implementation of the AfCFTA. On the other hand, Ghana, through the Ghana Export Promotion Authority, is prioritizing intra-African trade in the implementation of the National Export Development Strategy, which aims to create a $25 billion export economy by 2029. Yodit Hailemariam, a development economist based in Addis Ababa, says Africa's trade and economic future rests in regional integration. 'As a continent, we have a promising future. Regional integration must now move from theory to reality. Regional blocs must start aligning their industrial and trade policies for intra-African trade to be effective and beneficial,' she told RT. 'For AfCFTA to succeed, we will need strong and powerful regional and continental value chains.' Afreximbank already has a $2 billion Intra-African Trade Resilience Fund to help exporters build continental logistics hubs to boost intra-continental trade. And with the African Union set to host an emergency trade summit in August 2025 in Nairobi to discuss unified responses to global trade shocks, Dr. Owusu says Trump's tariffs on African countries are a 'statement of economic freedom and independence for the continent.' A 2022 research report published by the World Bank Group forecasted that full implementation of the AfCFTA could lift at least 50 million Africans out of extreme poverty by 2035. Wamkele Mene, who heads the AfCFTA secretariat, says that to fully benefit from the protocol, member states need to focus on innovation and economic development, which requires the integration of government, industry, and academia to foster innovation and economic development. 'We urgently must address existing challenges to continental trade, enhance trade capabilities and develop sector-specific technologies,' Mene said. 'What we need are policies that promote intra-African trade and cooperation, tax incentives as a catalyst for propelling Africa towards greater economic integration.' Mene says that through the AfCFTA, Africa has a chance to accelerate the realization of the African Union Agenda 2030 goals and try to establish a sustainable economic foundation for future generations.
Russia Today
a day ago
- Russia Today
Sierra Leone to host Russian fishing fleet under new deal
Sierra Leone's government is prepared to grant Russian fishing operators an annual catch quota of 40,000 tons, along with investment incentives aimed at boosting bilateral cooperation in the sector, the Russian Federal Agency for Fisheries (Rosrybolovstvo) has announced. The agency said the move was discussed during the inaugural session of the Russian-Sierra Leone Fisheries Commission held in Freetown, the capital of the West African country. 'The country [Sierra Leone] is interested in attracting up to 20 vessels to work in its exclusive economic zone,' Rosrybolovstvo wrote on its official Telegram channel. According to the statement, scientists from the two countries previously conducted marine biology research to assess the biomass and distribution of small pelagic fish species as part of the Great African Expedition launched by Rosrybolovstvo last August. The two sides are expected to launch detailed negotiations on operations in Sierra Leonean waters once research data is processed and interest by fishing companies in specific fish stocks and other marine resources is evaluated. Rosrybolovstvo added that the African country is also seeking cooperation with Moscow on port development, fleet modernization, and investment in coastal refrigeration and oversight systems. Russia's engagement in Africa has intensified in recent years, with several nations seeking joint projects with Moscow in defense, energy, education, and trade. The Kremlin has declared strengthening ties with the continent a top foreign-policy priority. In January, Russian Foreign Ministry spokeswoman Maria Zakharova confirmed plans for new embassies to be established in several African nations, including Sierra Leone. For now, the Consulate General in Freetown remains Russia's primary diplomatic representation in the country. A series of agreements have been signed in recent weeks between Russia and African countries, including peaceful nuclear energy cooperation deals with Burkina Faso and Mali covering infrastructure development and joint projects in healthcare and agriculture. On Wednesday, TASS quoted Sierra Leonean ambassador to Russia Mohamed Yongawo as saying that his country seeks cooperation with Russian IT firms such as Yandex, particularly in the fields of education and healthcare. He reportedly made the remarks during a plenary session at the XVI International IT Forum in the central Russian city of Khanty-Mansiysk.
