Egypt reports a new oil discovery in the Gulf of Suez

Egypt has achieved a significant oil breakthrough in the Gulf of Suez region, further fortifying its energy reserves and drilling prospects in response to surging demands both domestically and internationally. In a recent announcement from Egypt's Ministry of Petroleum, Cheiron, an energy company, unveiled a fresh oil discovery within the Geisum and Tawila West Concession, nestled in the Gulf of Suez, through the exploratory well named GNN-11. This marks the completion of the fourth well in this particular area, with plans to drill an additional three wells as part of the ongoing exploration efforts.

The GNN field holds substantial promise, with its daily production capacity now hovering around 23,000 barrels, a remarkable increase from the prior 4,000 barrels per day output before the development of this field. Currently, Cheiron retains a 60% stake in the concession, while the Kuwait Foreign Petroleum Exploration Company (Kufpec) maintains the remaining 40% ownership. According to Cheiron, this newfound Nubia discovery validates the exploration potential within the northern region of the concession. The revelation underscores the fact that while the Gulf of Suez is considered a fairly mature hydrocarbon province, there remains a considerable untapped reservoir of exploration potential.

This discovery assumes critical significance as Egypt strives to enhance its energy production and reserves, specifically focusing on natural gas to meet the mounting energy needs at home and for export to European markets. Notably, the value of Egypt's natural gas exports surged to $8.4 billion last year, marking a 171% increase compared to the previous year. In addition, in December of the same year, Egypt unearthed a substantial gas field off its northeastern Mediterranean coastline, boasting potential reserves of 3.5 trillion cubic feet of natural gas.