Egypt’s gas output to rise with discovery in Nile Delta

Egypt has confirmed a new natural gas discovery in the Nile Delta, which should increase local production and cut the country’s energy import bill.

The well’s production capacity is estimated at 50 million cubic feet per day following joint drilling by Italy’s Eni and the UK’s BP in the West Abu Madi concession area, the cabinet said in a statement.

Egypt’s petroleum minister Karim Badawi said the well’s proximity to existing infrastructure, being less than 2km from the nearest production facilities, allows for its rapid connection to the grid and the start of early production.

West Abu Madi is operated by Eni, BP and the Egyptian General Petroleum Corporation.

In January Egypt discovered five exploratory wells, which are expected to add around 47 million cubic feet of natural gas, 4,300 barrels of crude oil and condensates to the country’s daily production.

Further reading:

• UAE-UK joint venture to invest $500m to develop Egypt gas field
• Egypt faces steepening gas import bill due to Iran war
• Egypt to clear $1bn debt to oil companies by June

Cairo launched a seismic survey in December to explore for oil and gas in sites that form nearly 10 percent of the country’s area.

The country plans to drill 101 oil and gas wells this year. This is part of a $5.7 billion investment approved by the government in 2025 to start drilling 480 wells over the next five years.

In March prime minister Mostafa Madbouly said the country’s gas import bill has increased by $1.1 billion a month since the outbreak of the Iran war.

Last week Badawi said that Cairo had reduced $1.3 billion of arrears owed to international oil and gas companies to $714 million ⁠by the end of ⁠April.