Chevron to Start Drilling New Gas Well in Egypt's Mediterranean
Chevron, the U.S. energy giant, is set to begin drilling an exploratory well in the deep waters of Egypt's Mediterranean Sea next month, specifically in its Nargis concession area. According to Asharq Business, the investment for this project is estimated to be around $150 million. This marks a significant step in Chevron's ongoing efforts to explore and develop natural gas resources within the Nargis concession, which it operates.
The upcoming drilling is part of Chevron's broader strategy to expand its presence in Egypt's energy sector, particularly in the Mediterranean region, which is known for its rich natural gas reserves. The company has already completed the necessary geological studies and preparatory research for the well. An official involved in the project indicated that a drilling rig is expected to arrive at the site by the end of October, ready to begin the discovery process.
Chevron is not the sole operator in the Nargis concession. It holds a 45% stake alongside IEOC Production, a subsidiary of Italy’s Eni, which also holds 45%. Egypt's Tharwa Petroleum Company holds the remaining 10%. This partnership highlights the collaborative effort between international and local companies to tap into Egypt's growing energy potential.
The Nargis-1 field, located in the eastern Mediterranean, spans an area of approximately 1,800 square kilometers. It is believed to contain an estimated 2.5 trillion cubic feet of recoverable gas, making it a significant target for exploration and development. The success of this drilling could further bolster Egypt's status as a key player in the region's energy landscape.
Chevron's focus on the Nargis concession aligns with its broader commitment to natural gas development, particularly in regions like the eastern Mediterranean that have shown great promise in recent years. For Egypt, such discoveries are crucial to meeting domestic energy demand and expanding its role as a regional energy hub, with the potential for export to neighboring markets.
Overall, the drilling project represents a major investment in Egypt’s energy future, with Chevron and its partners positioning themselves at the forefront of the country's natural gas exploration and production efforts. If successful, the Nargis-1 field could become a significant contributor to Egypt’s natural gas output, reinforcing its strategic importance in the Mediterranean energy market.
Chevron Corporation is an American multinational energy company primarily focused on oil and gas. As the second-largest direct descendant of Standard Oil, it was originally called the Standard Oil Company of California. Today, Chevron operates in over 180 countries.