Our new energy investment model in action: CIS Gaz, Aten Petroleum, and Terra Petroleum will explore and produce gas in an Eastern Desert block under the new energy investment model adopted by the Madbouly government, according to an official document seen by EnterpriseAM. This comes after the consortium inked an agreement with the Egyptian General Petroleum Corporation (EGPC).

Why it matters: The agreement — a pivot from rigid, traditional models — adopts a flexible production-sharing mechanism that links the foreign partner’s share to global Brent prices as well as daily production rates. The new framework is a fully “incentive-based system,” whereby the contractor’s share increases when Brent prices decline or production levels fall — helping offset costs.

The bottom line: This reduces investment risks, particularly in mature fields that require advanced technology or higher operating expenditures. The shift is designed to retain mid-sized oil companies in Egypt’s upstream sector, especially following the exit of larger players, according to the document under review.

READ MORE- We have a more detailed breakdown of our energy investment model shakeup here.

The fine print: EGPC’s share from production ranges between 70-80%, depending on Brent prices. The agreement obliges the foreign partner to prioritize Egypt’s domestic crude oil needs, granting EGPC the right to directly purchase production.

What’s next? The Madbouly government is expected to soon offer the Ras Badran and Zeit Bay oil fields in the Gulf of Suez after DEA’s exit from the blocks. EGPC may decide to operate these fields independently or seek a new partner willing to adopt the same “incentive-based” model to maximize remaining reserves.

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