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Egypt Kuwait Holding Co. is emerging as a key player in Egypt’s latest push to expand oil and gas production, after its subsidiary Parenco Egypt secured rights to drill offshore North Sinai under one of three new exploration agreements worth more than $121 million.
The deal, announced by Egypt’s petroleum ministry, re-awards Parenco the North Sinai offshore block and calls for three new wells. Dubai-based Dragon Oil and U.S. producer Apache signed companion deals worth $40.5 million and $35 million, respectively, targeting the Suez Gulf and Western Desert. Apache’s commitment alone covers 14 wells across five Western Desert exploration areas.
The new agreements underscore Cairo’s determination to sustain oil and gas output at a time when declining supplies from aging fields and surging electricity demand are straining the country’s energy balance. Minister Karim Badawi said the partnerships highlight Egypt’s role as a regional energy hub linking Africa, Europe, and Asia.
For Egypt Kuwait Holding, chaired by Kuwaiti businessman Loay Jassim Al-Kharafi, the award reinforces its strategy of building upstream energy assets in Egypt while diversifying its portfolio. EKH has interests spanning natural gas distribution, fertilizers, power generation, and renewable energy, and Parenco’s re-entry into North Sinai signals confidence in long-term returns from Egypt’s offshore reserves.
The ministry has been courting major international players as part of a wider exploration drive. In recent weeks, Shell, Eni, Russia’s Zarubezhneft, and Arcius Energy—a BP and ADNOC joint venture—signed separate deals totaling $343 million. Shell is investing $120 million to drill three wells in the Mediterranean’s Merneith block, while Eni committed $100 million for East Port Said exploration.
Egypt’s oil output is edging close to 700,000 barrels per day this year, helped along by new infrastructure, better recovery methods, and upgrades in refining and petrochemical technology. Government data shows the industry accounts for about 15% of national GDP and provides jobs for a large share of the workforce.
At the same time, Cairo is pushing cross-border initiatives—from LNG export terminals to new pipeline projects—to secure its foothold in the global energy network. A fresh memorandum of understanding with BP covering refinery expansion and fresh drilling in the West Nile Delta underscores Egypt’s drive to draw foreign investment even as regional tensions simmer.
The North Sinai award to Parenco Egypt underlines Egypt Kuwait Holding’s expanding role in North Africa’s energy scene. Under Loay Jassim Al-Kharafi’s leadership, the holding company has been steadily building its upstream portfolio while keeping a stable base of downstream and distribution operations that provide consistent cash flow. Investors tracking the group’s activities see the North Sinai award as a sign the holding company intends to remain a significant player in Egypt’s energy expansion—linking Gulf capital, Egyptian reserves, and international partners.
