Egypt has approved four new oil and gas agreements, including a major exploration project for Perenco in North Sinai, as the government moves to increase domestic energy production and reduce its reliance on imported liquefied natural gas (LNG).

The approvals come as Egypt faces rising electricity demand and works to reverse a decline in natural gas output.

Officials have made expanding exploration a priority to strengthen energy security and support economic growth.

Parliament on Wednesday approved agreements covering North Sinai, the Nile Delta, the Mediterranean Sea and the Eastern Desert, according to Egyptian media.

The projects are expected to attract new investment while expanding oil and gas exploration across key producing regions.

The latest approvals also come as energy markets remain focused on supply risks in the Middle East, where regional tensions continue to influence oil and LNG trade.

New exploration plans

One of the agreements authorizes the Egyptian Natural Gas Holding Company (EGAS) and Perenco North Sinai Petroleum Inc. to explore the Al-Fayrouz onshore block in North Sinai.

The concession was awarded in June 2025 through EGAS’ 2024 international licensing round.

The work program includes a 3D seismic survey and the drilling of one exploratory well to assess the area’s oil and gas potential. The project is expected to provide new data that could support future development in the region.

Egypt steps up energy investment

The latest agreements are part of Egypt’s broader effort to encourage upstream investment and increase local oil and gas production. Higher domestic output would help meet growing demand while limiting the need for additional LNG imports.

Energy markets are also watching developments in the Middle East. Reuters reported this month that Iran had asked the Iran-backed Houthis to prepare to close the Bab al-Mandab Strait if the United States attacked Iranian energy infrastructure, underscoring concerns about disruptions to global oil and LNG shipments.

Perenco expands North Sinai presence

Perenco North Sinai Petroleum, a subsidiary of Egypt Kuwait Holding, has operated the North Sinai concession since 2014.

The independent Anglo-French producer focuses on developing mature oil and gas assets while investing in new exploration opportunities across several international markets.

The Al-Fayrouz block adds to its growing portfolio in Egypt. The parliamentary approvals reflect Egypt’s continued push to unlock new energy resources as it seeks to strengthen domestic supply, attract foreign investment and reinforce its position as a regional oil and gas hub.