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Egypt resumes new drilling in Zohr gas field

Zohr is a major part of Egypt’s gas output
Gas asset in Egypt
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Egypt has started work on three new wells in the Zohr gas field as part of efforts to boost production in the current financial year, the petroleum ministry said on Tuesday.

The ministry added that another well, the Zohr-6, has already contributed about 65 million cubic feet per day of gas to national output.

In a statement, the petroleum ministry explained that Zohr, located in the Mediterranean, remains a central pillar of Egyptโ€™s natural gas sector.

โ€œDrilling operations are ongoing at three new wells in the Zohr field, with results expected to support Egyptโ€™s energy balance,โ€ the ministry said.

Drop in output and payment delays

Zohr is operated by Petrobel, a joint venture between Italian energy company Eni and the Egyptian General Petroleum Corporation (EGPC).

Eni resumed drilling in February after production had been restricted due to arrears owed by Egypt to foreign oil companies.

The ministry reported that output from Zohr, the largest gas discovery in the Mediterranean, had fallen to 1.9 billion cubic feet per day in early 2024.

This marked a steep drop from the peak levels recorded in 2019, when the field played a major role in positioning Egypt as a regional exporter of liquefied natural gas.

The decline had been linked to overdue payments that strained relations between Egypt and its foreign partners. The government has since been working to reduce the backlog and assure operators of timely settlement.

Zohrโ€™s role in Egyptโ€™s gas output

Discovered in 2015 by Eni, Zohr was seen as a breakthrough for Egyptโ€™s gas industry.

Production began in late 2017 and the field is estimated to hold about 30 trillion cubic feet of recoverable reserves.

The project was fast tracked in its early stages, turning Egypt from a gas importer to a country able to export surplus volumes.

This helped Cairo restart idle liquefied natural gas plants and supply markets in Europe and Asia.

However, in recent years, the fall in production at Zohr has raised concerns about maintaining export commitments while meeting growing domestic demand.

Officials view the drilling of new wells as a necessary step to sustain output and avoid shortages.

In its statement, the petroleum ministry noted that drilling activities are part of wider plans to maximise recovery from Egyptโ€™s mature fields while attracting investment in offshore exploration.

Zohr remains the centrepiece of those plans, with ongoing collaboration between state owned EGPC and Eni expected to determine Egyptโ€™s ability to stabilise production and retain its position as a key gas supplier in the region.

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