Egypt launched an international tender for four Red Sea exploration blocks, applying an R-Factor–based production-sharing model that had not been used previously in the country. The process is managed by South Valley Egyptian Petroleum Holding, with a six-month bidding window ending 3 May. The petroleum and mineral resources ministry stated that the extended schedule was designed to give companies adequate time to review the blocks and prepare technically detailed submissions.

The ministry described the R-Factor mechanism as a structure that links contractor returns to project profitability, ensuring that investment levels and associated risks are reflected in the allocation of production. The announcement forms part of Egypt’s broader effort to maximise its hydrocarbon resources, as noted in a report by Zawya.

The tender was issued as Egypt continued to advance its oil and gas exploration activity with international partners. In the previous month, oil and mineral resources minister Karim Badawi presented a five-year plan allocating $5.7 billion for operations, including the drilling of 480 wells.