Al Mal reported that the decision of the BRICS member country Egypt was made a month after the US targeted Lukoil with new sanctions.
The Russian oil giant will invest a minimum of $22.5 million over six years in the South Wadi Al-Sahel oil franchise, Al Mal reported on February 10.
Unlike the traditional bidding process, this franchise was granted through a direct agreement between the Egyptian Petroleum Ministry and Lukoil.
RT said that Lukoil has not yet confirmed the agreement with Russian media.
The deal is part of a number of oil and gas development projects that the Egyptian government has reached with foreign companies earlier this month. The total value of the projects is about 225.3 million USD, including projects in the Western and Northern Sinai deserts.
Lukoil is one of the world's largest publicly traded oil and gas companies, accounting for about 2% of the world's oil production. This is Russia's largest private company in terms of revenue.
Last month, the US imposed new sanctions on Russia's energy sector, targeting a number of oil companies, including Lukoil and the company's CEO, Vadimvorobyov.
Immediately after the restrictions were put forward, the company appointed a new CEO. Lukoil founder Vagit Alikperov was sanctioned by the US in 2022, shortly after the Ukraine conflict escalated.
Lukoil has been active in the Egyptian energy industry for more than two decades. Currently, the company is implementing the West Esh El-Mallaha production project in the Eastern desert, as an operator and owning a 50% stake. The company also owns a 24% stake in the Meleiha project in the Western Desert.
Egypt became a member of BRICS - formerly including Brazil, Russia, India, China and South Africa - in 2024. Along with Egypt, the group also welcomed members from the United Arab Emirates, Ethiopia, Iran and Indonesia.
Egypt remains neutral on the conflict in Ukraine, stressing the importance of dialogue and diplomatic solutions.
