Egypt and Libya Sign Strategic Energy Cooperation Agreement
Egypt and Libya have formalized a memorandum of understanding to deepen cooperation in the oil, gas, and mining sectors, marking a significant step toward enhanced regional energy collaboration between the two North African neighbors. The agreement was signed by Waleed Lotfy, Chairman of the Petroleum Projects and Technical Consultations Company (PETROJET), and Masoud Suleman, Chairman of Libya’s National Oil Corporation. The signing ceremony was attended by Libyan Prime Minister Abdulhamid Al-Dbeibeh, Egypt’s Minister of Petroleum and Mineral Resources Karim Badawi, and Libya’s Minister of Oil and Gas Khalifa Abdulsadek.
The MoU establishes a comprehensive framework for joint research, exploration, and the development of crude oil refining to maximize added value. The partnership also explores the feasibility of transporting crude oil and natural gas between the two nations, potentially creating new trade corridors for energy resources. Libyan Prime Minister Al-Dbeibeh characterized the agreement as stemming from a shared commitment to building stronger energy institutions. “This agreement reflects our intent to deepen regional cooperation and exchange expertise to support production growth, energy security, and sustainable development,” Al-Dbeibeh stated.
Egyptian Minister Badawi emphasized that supporting downstream industries such as petrochemicals, mining, manufacturing, and electricity generation, alongside other state sectors, serves as a key driver of economic development. He noted that Egypt’s infrastructure provides a strong platform for regional energy trading, citing its liquefaction plants and its position as Africa’s second-largest refining hub with a crude processing capacity of 40 million tons per year.
The oil and gas sector’s contribution to Egypt’s gross domestic product stood at 8 percent in fiscal year 2024/25, reaching EGP 1.27 trillion. This performance was driven by gains in downstream activities and stronger refinery operations, supported by efficiency upgrades and increased throughput. Libya recorded a series of discoveries in late 2025, mainly in the Sirte and Ghadames basins, and aims for overall national output of 2 million barrels per day by 2030, backed by a $20 billion investment program.
Source: egyptoil-gas.com
