Egypt announces new Mediterranean gas field discovery estimated at 200 billion cubic feet

Egypt announced the discovery of a new natural gas field in the Mediterranean Sea, with initial estimates suggesting around 200 billion cubic feet of gas in the reservoir of the exploratory well Nasim-1X. The Egyptian Ministry of Petroleum and Mineral Resources revealed that drilling and appraisal work at the well in the Taiba concession area had identified a gas-bearing layer with a net thickness of approximately 15 metres, exhibiting unique geological and petrophysical properties.

Further technical and reservoir studies are being conducted to determine the exact production volumes, daily production rates, and commercial viability of the discovery. The ministry has not yet set a date for the commencement of production.

To utilize the newly found resource, Egypt aims to connect the well to existing production facilities through a 22-kilometre pipeline, which will be linked to the Abu Madi - El Gamil pipeline. This move will leverage the existing infrastructure and expedite the initiation of production. The exploration of the Taiba concession is being carried out jointly by Italian company Eni and Australian company Woodside, while drilling operations were performed by Egyptian firm Petrobel on behalf of the partners.

The positive results of the discovery are attributed to increased investment and exploration activity, as well as the improved investment climate and progress in resolving overdue financial receivables owed to foreign companies operating in the energy sector. Egypt is striving to boost its domestic natural gas production following a decline in output over the past years, which has led to increased reliance on gas imports to meet market demand.

Cairo is counting on the development of new discoveries and accelerated exploration efforts to bolster local supplies, as strong gas demand exists from the electricity and industrial sectors.