Tripoli: Egypt and Libya have formalized a cooperative effort in the oil, gas, and mining sectors through a memorandum of understanding (MoU). The agreement was signed on the sidelines of the Libya Energy and Economic Summit, marking a significant step in regional collaboration.
According to State Information Service Egypt, the MoU 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 (NOC). The signing was witnessed by notable dignitaries including 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 aims to establish a framework for joint research and exploration, as well as the development of crude oil refining processes to enhance added value. It also considers the feasibility of transporting crude oil and natural gas between Egypt and Libya. Libyan Prime Minister Al-Dbeibeh emphasized that the agreement is a testament to the countries' shared commitment to building robust energy institutions. He highlighted the intent to deepen regional cooperation and exchange expertise to support production growth, energy security, and sustainable development.
During the opening session of the summit, Egypt's Minister of Petroleum and Mineral Resources, Karim Badawi, underscored the importance of supporting downstream industries such as petrochemicals, mining, manufacturing, and electricity generation. He noted that these sectors are crucial for economic development. Badawi also pointed out that Egypt's infrastructure offers a strong platform for regional energy trading, with its liquefaction plants and position as Africa's second-largest refining hub, boasting a crude processing capacity of 40 million tons per year.
The oil and gas sector's contribution to Egypt's GDP was recorded at 8% in the fiscal year 2024/25, amounting to EGP1.27 trillion. This growth was fueled by advances in downstream activities and improved refinery operations, supported by efficiency upgrades and increased throughput. In Libya, a series of discoveries were made in the Sirte and Ghadames basins in late 2025. Libya aims to achieve a national output of 2 million barrels per day by 2030, supported by a $20 billion investment program.