Egypt Announces New Natural Gas Discovery in Nile Delta

New Gas Discovery Details

Egypt’s Ministry of Petroleum and Mineral Resources has confirmed a new natural gas discovery in the Nile Delta, with an estimated production capacity of approximately 50 million cubic feet per day (mcf/d). This discovery follows the successful drilling of the Nidoco N-2 exploratory well, located within a concession area operated by Eni in collaboration with BP.

Minister of Petroleum and Mineral Resources, Karim Badawi, visited the EDC-56 drilling rig, which conducted operations in the West Abu Madi area of Kafr El Sheikh governorate. The well was drilled from onshore, approximately 3 km offshore in shallow waters at a depth of around 10 meters, utilizing advanced directional drilling technologies. This approach not only reduces costs but also enhances operational efficiency.

Impact on Investment and Production

Minister Badawi emphasized that the recent discovery, coupled with increased output from existing fields, signifies the petroleum sector’s success in addressing outstanding dues to foreign partners. The government aims to achieve full clearance of these dues by the end of June, a move that demonstrates its commitment to fostering confidence among international investors and improving the overall investment climate.

He noted that the regular settlement of dues has prompted partners to ramp up exploration activities, enhance drilling and production rates, and expand the development of mature fields through extended concession agreements. These efforts are expected to attract new investments into the sector.

Infrastructure and Future Prospects

The proximity of the well to existing infrastructure—less than 2 km from the nearest production facilities—facilitates a quick connection to the network, potentially enabling early production within weeks. This strategic positioning is anticipated to improve capital efficiency and maximize the utilization of existing resources.

Minister Badawi highlighted that this discovery serves as a model for optimizing the use of current infrastructure, increasing production, and bolstering domestic gas supply. It also underscores Eni’s ongoing exploration success within its concession areas.

Reduction in Debt to International Partners

In a related development, Badawi revealed that the debt owed to international investment partners in the oil and gas sector has significantly decreased from $6.1 billion in June 2024 to approximately $714 million in April 2026. This reduction brings the sector closer to achieving its goal of ‘zero arrears’ by the end of next June.

Frequently Asked Questions

What is the estimated production capacity of the new gas discovery?

The estimated production capacity is around 50 million cubic feet per day.

Who are the partners involved in the gas discovery?

The discovery is a result of operations by Eni in partnership with BP and the Egyptian General Petroleum Corporation.

When is the government aiming to clear its debts to foreign partners?

The government aims to achieve full clearance of dues by the end of June.

What technologies were used in drilling the Nidoco N-2 well?

Advanced directional drilling technologies were utilized to enhance operational efficiency.

How has the debt to international partners changed recently?

Debt owed to international partners has decreased from $6.1 billion to about $714 million.