Egypt to invest $1.9bn to drill 45 exploratory gas wells

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Egypt is planning to drill 45 natural gas exploratory wells in the Mediterranean and the Nile Delta with $1.9 billion in investments until mid-2025, according to minister of petroleum and mineral resources Tarek El Molla.

The drilling of 10 wells was completed between July 2022 and June 2023, which resulted in the massive discovery of about 2.5 trillion cubic feet of natural gas off the Nargis concession in the Mediterranean, Egypt Today newspaper reported, citing the minister.

In addition, the country will drill 35 new natural gas wells in 2024-2025, with more than $1.5 billion in investments.

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El Molla declared that the results of international bidding to search for natural gas in 12 onshore and offshore areas in the Mediterranean and the Delta are being evaluated. The bidding round ended in July.

Meanwhile the minister said that British Petroleum (BP) intends to drill four new natural gas exploratory wells during the fourth quarter of 2023.

Two wells will be drilled in the Raven gas and condensate field in the North Alexandria and West Mediterranean, while two others will be drilled in the King Mariout offshore concession in the western Mediterranean.

Earlier this month Egypt’s Cheiron Energy announced a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez.

The discovery was made by the GNN-11 exploration well, which is currently producing more than 2,500 barrels per day.

Ratings agency Fitch last month revised down its forecast for Egypt’s gas production in 2023, to a 4 percent decline from its previous prediction of 1 percent year-on-year growth. The drop was blamed on a thin project pipeline and high depletion rates at existing fields.