Egypt’s Cabinet, chaired by Prime Minister Mostafa Madbouly, approved a Ministry of Petroleum and Mineral Resources request to continue production from petroleum development areas where contracts have expired or are nearing expiry, aiming to maintain current production levels.

The approval applies to areas that still hold reserves that can be produced economically. It also seeks to make use of existing investments and infrastructure while the government completes the legal and constitutional procedures required for awarding or re-awarding the areas.

Under the approved rules, the Egyptian General Petroleum Corporation (EGPC) will retain possession and control of all production extracted during the interim period and will oversee the operations.

The Cabinet stressed that the decision does not extend or renew expired development contracts. It also grants no contractors or private entities any right to operate, manage or exploit the areas during the interim period.

The measure allows production to continue while the government completes the procedures and issues the legislation required to award or re-award the development areas, depending on each case.

The decision follows other government measures aimed at maintaining petroleum production and bringing investment into exploration and development. In April, the Cabinet approved two draft concession agreements covering oil and gas exploration, development and production in several areas.

Those approvals included the Lotus offshore Mediterranean concession between the government, the Egyptian Natural Gas Holding Company (EGAS) and Chevron Egypt Holdings Ltd., alongside a separate agreement covering several General Petroleum Company (GPC) development areas. The two concessions require minimum investments totaling $85 million.