Egypt Adds 45 MMcf/d of Gas From Four New Wells
Khalda, Amal, Ezz-2 and MA-1X wells come online as Cairo works to slow a production decline that started in 2021.
Tariq Benali Tariq Benali covers business and corporate news across the UAE and MENA for Anecdoted, tracking the deals, leadership moves and regulatory shifts behind the region's companies. tariq@anecdoted.com
Four wells have added a combined 45 million cubic feet per day of gas and 540 barrels per day of condensates in Egypt, part of a government push to lift domestic supply and cut back on imports.
Where the volumes come from
Khalda Petroleum put the SKAL-2 well into production in the West Kalabsha area of the Western Desert, where it is flowing at roughly 12 MMcf/d. The petroleum ministry disclosed the figure in a Wednesday statement.
In the Gulf of Suez, Amal Petroleum Company brought the Amal-23 A ST well back online after repair work, recovering about 15 MMcf/d.
The onshore Nile Delta accounts for the remaining volumes. Ezz-2 is producing around 10 MMcf/d along with 460 barrels per day of condensates, while Disouq Petroleum Company's MA-1X well contributes roughly 8 MMcf/d and 80 barrels per day of condensates.
The ministry tied the new output to heavier spending on drilling and field development, which it said followed the government's clearing of unpaid bills owed to its petroleum-sector partners.
A wider effort to halt the slide
The four wells arrive as Egypt tries to draw upstream investment back and stop a fall in gas production that has run for several years.
Petroleum Minister Karim Badawi said in August that consistent payments to partners, investment incentives and reworked commercial terms had lifted drilling, exploration and field-development work over the previous two years. The ministry says those measures have also made the decline that began in 2021 less steep.
Other wells have already come onstream this year. In late August, bp started up the Fayoum 4 well in the West Nile Delta at about 80 MMcf/d, roughly two years ahead of plan, per the ministry.
Earlier, in March, the ministry reported fresh gas output in the Mediterranean and the Western Desert. A second well lifted West Burullus from 25 MMcf/d to 37 MMcf/d, and testing at the BED 15-35 well in the Western Desert pointed to production potential of 10 MMcf/d to 15 MMcf/d.
More investment sought
bp told ministry officials this month that the drilling program it began in April covers four confirmed wells, with total investment of $700 million.
On the payments side, Egypt wiped out its arrears to oil and gas companies in June. The balance stood at $6.1 billion on June 30, 2024, and was cut to $1.3 billion in March, $714 million in April and $440 million in May before the final settlement took it to zero.
