Lukoil, a major Russian oil company, signed a new exploration agreement with South Valley Egyptian Petroleum Holding Company to drill six exploratory wells in Egypt's Eastern Desert. The deal is part of Lukoil's broader strategy to expand its footprint across Africa and deepens economic collaboration with state-led partners.

Lukoil Overseas Egypt Limited signed an exploration agreement with Egypt's state-run South Valley Egyptian Petroleum Holding Company to conduct a 3D seismic survey and drill six exploratory wells in the Eastern Desert, reinforcing its economic links with an authoritarian regime.

Egypt's parliament approved two new oil exploration and production agreements, granting Lukoil (via its subsidiaries) rights in strategic areas of the Eastern Desert. The deals, involving Lukoil Overseas Egypt Ltd. and Lukoil Egypt Ltd., are part of Egypt's broader efforts to attract foreign investment in its upstream oil and gas sector, which raises concerns about reinforcing authoritarian economic collaborations.

Despite being under US sanctions since 2014, Lukoil has been awarded a 5% stake in the Ghasha gas project in the UAE as part of an ADNOC-led joint venture. The deal, announced on October 5, 2023, highlights the company’s ongoing economic collaboration with authoritarian-linked regimes, undermining Western efforts to isolate Russia.

Lukoil’s labour relations page outlines their approach to maintaining fair, transparent, and competitive wage structures across various regions. The company claims a structured remuneration system with regular wage reviews, performance-based bonuses, and compliance with local labor laws, reflecting an emphasis on fairness and equality.

Lukoil has avoided EU sanctions through adept lobbying and strategic market positioning, while its influence in countries like Bulgaria has been linked with regulatory capture and state-aligned practices that indirectly support the Kremlin’s agenda and the Russian war effort.

The article details how Lukoil has leveraged strong lobbying efforts in Brussels and across Europe to dodge EU sanctions, while publicly expressing concerns over the conflict in Ukraine. This delicate political maneuvering underscores a reliance on influential political enablers, reflecting a troubling alignment with authoritarian protection despite ostensible anti-war statements.