Egypt, Libya sign MoU to deepen oil, gas and mining cooperation

Egypt and Libya have signed a memorandum of understanding (MoU) to strengthen cooperation in the oil, gas and mining sectors, signalling closer regional coordination on energy development and infrastructure.

The agreement was signed on the sidelines of the Libya Energy and Economic Summit in Tripoli by Waleed Lotfy, Chairman of Egypt’s Petroleum Projects and Technical Consultations Company (PETROJET), and Masoud Suleman, Chairman of Libya’s National Oil Corporation (NOC). 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.

According to a statement from Egypt’s Ministry of Petroleum and Mineral Resources, the MoU establishes a framework for joint research, exploration activities and the development of crude oil refining capacity, with the aim of maximising value addition across the energy value chain. The agreement also includes cooperation on assessing the feasibility of transporting crude oil and natural gas between the two countries.

Libyan Prime Minister Al-Dbeibeh said the agreement reflects a shared commitment to building stronger energy institutions and enhancing regional collaboration. “This agreement reflects our intent to deepen regional cooperation and exchange expertise to support production growth, energy security, and sustainable development,” he said.

Speaking during the summit’s opening session, Badawi highlighted the role of downstream industries in driving economic growth. He said supporting sectors such as petrochemicals, mining, manufacturing and electricity generation, alongside other state industries, remains central to Egypt’s development strategy.

Badawi also pointed to Egypt’s existing infrastructure as a foundation for regional energy trade, citing its liquefied natural gas facilities and its position as Africa’s second-largest refining hub, with crude processing capacity of around 40 million tonnes per year.

The oil and gas sector remains a key contributor to Egypt’s economy. In the 2024/25 financial year, the sector accounted for about 8% of gross domestic product, equivalent to EGP1.27 trillion, supported by improved downstream performance, refinery efficiency upgrades and higher throughput levels.

On the Libyan side, the agreement comes as the country seeks to accelerate upstream development. Libya recorded a number of hydrocarbon discoveries in late 2025, primarily in the Sirte and Ghadames basins. The country has set a target to raise national oil production to around 2 million barrels per day by 2030, supported by a planned $20 billion investment programme.

The MoU is expected to provide a platform for closer technical cooperation and project development as both countries pursue energy security, economic diversification and increased regional integration.