Egypt to Boost Gas Production with New Drilling in Zohr Field
Egypt is set to enhance its natural gas production from the significant Zohr field in the Mediterranean Sea, as announced by the Minister of Petroleum and Mineral Resources, Karim Badawi. The drilling operations will be carried out by the Italian company Eni, which has been instrumental in the development of this vital gas reserve. This initiative aims to further exploit the gas reserves and increase production rates, which are critical for Egypt's energy strategy.
The Zohr field, located in the Mediterranean, is a collaborative project involving major players such as Eni, BP, Russia's Rosneft, UAE's Mubadala Energy, and the Egyptian Natural Gas Holding Company (EGAS). The field is operated by Petrobel, a joint venture between Eni and the state-owned Egyptian General Petroleum Corporation.
Khaled Mowafi, head of PetroShorouk, the operator of the Zohr concession area, reported that efforts made during the fiscal year 2023-2024 have maintained an impressive average production of approximately two billion cubic feet of gas per day. Investments in the field activities have surpassed $677 million, with plans to drill two new wells in the first quarter of 2025.
Eni's Country Manager for Egypt, Francesco Gaspari, emphasized that modern technology will be utilized for the upcoming drilling campaign in deep waters of the Zohr concession area. The Egyptian Cabinet previously estimated that total investments in the field have reached $12 billion, with expectations to rise to $15 billion over the next three years. The commencement of drilling well No. 20, backed by an investment of $70 million, is anticipated to elevate Zohr's production to 2.3 billion cubic feet per day.
Discovered in 2015, the Zohr field began production in late 2017 and is estimated to contain around 30 trillion cubic feet of gas. Prime Minister Mostafa Madbouly highlighted the government's goal of restoring natural gas production to normal levels by next summer, addressing issues related to arrears owed to production companies. While the exact amount of these arrears remains undisclosed, reports indicate that the government has allocated up to $1.5 billion for payments to foreign oil and gas firms, amidst a previously challenging foreign exchange shortage that has now improved.
