Chevron has made a “significant” gas discovery offshore Egypt that is set to be fast-tracked to production via existing infrastructure.
Egypt’s Petroleum Ministry said in December that Chevron had hit gas with its Nargis-1 exploration well in the eastern Nile Delta play, following a news report that the US giant had found 3.5 trillion cubic feet of gas.
Confirming the find yesterday, Chevron said the probe hit 61 metres of Miocene and Oligocene gas-bearing sandstones which it described as “high-quality reservoirs”.
The well was drilled to a total depth of more than 5000 metres, with the reservoirs intercepted in a 140-metre gross pay zone, according to Egyptian Natural Gas Holding Company (EGAS), Egypt’s gas regulator.
EGAS said reserves estimates are currently being assessed for the discovery which is located about 60 kilometres north of the Sinai Peninsula.
When MEES broke the original news of a discovery last year, it reported that Nargis could hold about 3.5 trillion cubic feet of gas.
Eni — Chevron’s key partner in the new field — said Nargis “can be developed leveraging the proximity of (the Italian major’s) existing facilities”.
EGAS said it aims to work with Chevron and its partners “to expedite” production from Nargis “as soon as possible” using a “rapid development plan” based on “current facilities”.
The nearest Eni platform is Thekah, located about 40 kilometres to the south-west, according to marine intelligence provider VesselsValue.
Nargis-1 was drilled in 309 metres of water in the Nargis Offshore Area Concession by the drillship Stena Forth, which is still on location having arrived at the Nargis block in late September 2022, according to ship tracking data.
Clay Neff, president of Chevron International E&P, said the find follows the supermajor’s entry into the Egyptian upstream sector in 2020.
He noted that the US player will now work with Egypt’s government, EGAS and its partners — which include Eni and Cairo-based Tharwa Petroleum — “to support the growth of Egypt’s energy sector through this exploration programme.”
Neff said the East Mediterranean “has abundant energy resources, and their development is driving strategic collaboration in the region”.
Chevron operates the huge Leviathan and Tamar fields in Israel and the Aphrodite project offshore Cyprus.
Both Chevron and Eni have 45% stakes in Nargis, with Tharwa on 10%.
Eni said Nargis-1 confirms the validity of its “focus” on Egypt offshore “which the company will further develop thanks to the recent award of exploration blocks North Rafah, North El Fayrouz, North East El Arish, Tiba and Bellatrix-Seti East”.
The Italian major is currently drilling ahead on a huge carbonate gas prospect in NE El Arish.