Egypt’s Ministry of Petroleum announced that The Cheiron company announced a new oil discovery in the Geisum and Tawila West concession area in the Gulf of Suez.
The discovery was made through the exploration well GNN-11.
This is the fourth well to be completed through the current phase of exploration.
A joint venture on behalf of the Egyptian General Petroleum Corporation is led by PetroGulf Egypt which has a 50 percent share of the project in partnership with PICO Cheiron and KUFPEC, together owning the remaining shares.
The total crude oil production of the North Geisum field reaches 23,000 barrels per day (bpd).
Cheiron and KUFPEC plan to explore more wells in the concession area and expand the development activity of the North Geisum field.
Read: Egypt oil and gas sector gets boost with new $1.4 bn investment
More reserves and production
Egypt’s latest oil discovery gives it more energy reserves and production opportunities at a time when domestic and foreign demand are rising.
Another three wells are set to be drilled in the same discovery area in order to exhaust the current exploration phase.
Cheiron says the “new Nubia discovery confirms the exploration potential in the northern area of the concession”.
“The discovery also demonstrates that while the Gulf of Suez is a relatively mature hydrocarbon province, it still has significant remaining exploration potential,” the company added.
Going through an alarming economic crisis, Egypt needs to boost production of natural gas in order to meet the rising energy demands domestically and for export purposes to Europe.
Egypt’s natural gas exports reached $8.4 billion in 2022, or a 171 percent rise over 2021.
In December 2022, Egypt announced it had discovered a substantial gas field off its northeastern Mediterranean coastline, with estimated reserves of 3.5 trillion cubic feet of gas.
Drilling investor
Apache Corporation, an oil and gas exploration subsidiary of Texas-based APA Corporation and a shale oil investor, major plans to spend $1.4 billion to fund oil and gas explorations in Egypt in 2024.
The company it has implemented modernization projects at its sites in Egypt to increase oil production by 10% to more than 150,000 barrels per day.
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