The Ministry of Petroleum attributed the positive results to higher investment and exploration activity, noting a better investment climate and progress in settling overdue payments to foreign companies in the energy sector.
Egypt has announced a new natural gas discovery in the Mediterranean Sea, with initial estimates pointing to around 200 billion cubic feet in the reservoir of the exploratory well "Nasim-1X".
ADVERTISEMENT
ADVERTISEMENT
Cairo hopes the discovery will help support domestic gas production and reduce reliance on imports.
The Egyptian Ministry of Petroleum and Mineral Resources said on Friday that drilling and appraisal work at the well, located in the Taiba concession area, had revealed a gas-bearing layer with a net thickness of around 15 metres, featuring distinct geological and petrophysical characteristics.
Technical and reservoir studies are still under way to determine the volumes that can be produced, assess possible daily production rates and evaluate the commercial viability of the discovery.
The ministry has not announced a date for the start of production.
Pipeline planned to speed up use of the discovery
Egypt plans to connect the well to existing production facilities via a pipeline about 22 kilometres long, linking it to the Abu Madi - El Gamil pipeline. This is intended to make use of the available infrastructure and shorten the time needed to begin production.
Italian company Eni is operating the Taiba concession in partnership with Australian company Woodside, while Egyptian firm Petrobel carried out the drilling work on behalf of the partners.
The Ministry of Petroleum attributed the positive results to higher investment and exploration activity, noting an improved investment climate and progress in settling overdue financial receivables owed to foreign companies working in the energy sector.
Egypt is seeking to increase its domestic natural gas production after a decline in output in recent years led to greater dependence on gas imports to meet market demand.
Cairo is relying on the development of new discoveries and faster exploration work to strengthen local supplies, amid strong gas demand from the electricity and industrial sectors.