Chevron, Eni Make "Significant" Gas Discovery Offshore Egypt
Chevron is "encouraged and excited" after drilling its first successful exploration well in the Eastern Mediterranean block.
Eni and Chevron announced on 15 January a “significant” gas discovery offshore Egypt in the Eastern Mediterranean Sea.
US supermajor Chevron is the operator of the project and said the Nargis-1 exploration well found nearly 200 net ft of gas-bearing sandstones. The well was drilled in a water depth of about 1,000 ft by the Stena Forth drillship within the greater Nargis concession area that spans 1800 km2.
“Chevron is encouraged and excited by the success of this first exploration well which encountered high-quality reservoirs,” Clay Neff, president of international exploration and production for Chevron, said in a statement.
Chevron has operating interests in a total of four exploration blocks offshore Egypt along with two other blocks where it has a nonoperating stake.
Italy’s state owned Eni suggested that the new discovery can be brought on stream using the company’s existing facilities in the region.
Eni added that the Nargis-1 well “confirms the validity” of the company’s focus on offshore Egypt where it holds operating and working interests in several blocks. Eni is the operator of the supergiant Zohr gas field that was discovered in 2015.
Drilling began on the Nargis-1 well in October and a report published in December said the discovery may yield as much as 3.5 Tcf of natural gas.
The development of the Nargis concession will accelerate the emergence of the Eastern Mediterranean which includes the Chevron-operated Leviathan gas field offshore Israel. Chevron became a major player in the region following its $5-billion acquisition of Noble Energy in 2020.
Chevron holds a 45% interest in the Nargis concession with Eni also holding 45%. Egypt’s Tharwa Petroleum Co. retains the remaining 10% interest.