The Cabinet said the decision reflects the presence of reserves that remain economically viable to produce, as well as the need to maintain current production levels and maximize the use of existing investments and infrastructure.
Egypt’s Cabinet approved a request from the Ministry of Petroleum and Mineral Resources to allow production to continue from oil and gas development areas and contracts that have expired or are approaching the end of their terms, until the necessary legal and constitutional procedures for awarding or re-awarding the concessions are completed.
The Cabinet said the decision reflects the presence of reserves that remain economically viable to produce, as well as the need to maintain current production levels and maximize the use of existing investments and infrastructure.
Under the approved framework, all oil and gas produced during the interim period will remain in the possession and under the control of the Egyptian General Petroleum Corporation (EGPC), which will also retain supervisory responsibility.
The Cabinet stressed that the approval does not constitute an extension or renewal of expired development contracts, nor does it grant contractors or private-sector entities any right to exploit or manage the relevant areas during the interim period.
Production will continue only until the required legal and constitutional procedures are completed and the relevant legislation governing the award or re-award of the concessions is issued.
