Pre-drilling estimates in Gulf of Suez indicate 8 mln barrels of crude oil reserves
This discovery aligns with the ministry's strategy to increase domestic oil and gas production, a key pillar in reducing import costs.
Egypt has faced a natural gas shortage due to declining domestic production, increased demand in the electricity sector, and growing industrial needs.
According to data from the Joint Organizations Data Initiative (JODI), in May 2024, Egypt’s oil production dropped by 30 percent from its peak in March 2021, reaching 4.288 million cubic metres.
The petroleum ministry anticipates that production volumes may exceed this estimate.
The exploratory drilling operations at the East Crystal-1 well were conducted by the Gulf of Suez Petroleum Company (GUPCO) in collaboration with the Emirati company Dragon Oil.
GUPCO plans to further develop the discovery by drilling two additional wells, which are expected to increase daily crude oil production by more than 5,000 barrels.
Preliminary test results from the Hawara layer, which extends over 16 feet, revealed a daily production rate of more than 2,000 barrels of crude oil. The primary Honey layer, with a thickness exceeding 100 feet, has yet to be tested.
This discovery is crucial as it indicates the potential for revitalizing production in mature fields, particularly in the Gulf of Suez.
Employing modern technologies, such as Ocean Bottom Nodes (OBN) seismic surveying, played a critical role in this discovery.
OBN seismic surveying is an advanced technique that captures high-resolution seismic data by deploying sensors on the seabed, providing more accurate subsurface imaging for oil and gas exploration.
The East Crystal-1 well is the second successful exploratory well drilled using this cutting-edge technology, following the success of the S. El-Wasl-1 well.
In related news, ExxonMobil, a US-based multinational oil and gas corporation, announced in January that it had discovered natural gas reserves off the coast of Egypt following the successful drilling of an exploratory well in the Mediterranean Sea.
Founded in the 1960s, GUPCO is a joint venture between the Egyptian General Petroleum Corporation (EGPC) and British Petroleum (BP).
It is one of the largest offshore and onshore crude oil producers in the Gulf of Suez Basin.
Dragon Oil, a privately owned subsidiary of Emirates National Oil Company (ENOC) based in UAE, is an oil and gas exploration, development, and production company registered in Ireland.