CAIRO - 4 December 2022: US Chevron Corporation announced the discovery of a new gas well, called "Narges-1X", in the offshore Narges area near Al-Arish in Egypt, according to the MEES newsletter.
The Middle East Economic Survey (MEES) is a weekly newsletter published by Middle East Petroleum and Economic Publications Ltd.
The Narges offshore block (in which Chevron operates at 45 percent, Eni 45 percent, and state-run company Tharwa at 10 percent) discovered 3.5 trillion cubic feet of gas, a source told MEES.
The well is being drilled by the Stena Forth drillship.
“Narges-1X" has encountered gas at its primary target depth of 3,980ms. The discovery will be a huge boost to Egypt which has seen its output fall from a peak of 7.2 billion cfd last September to 6.5 billion cfd for the third qyarter (Q3),” the newsletter added.
In June, the Egyptian Natural Gas Holding Company "EGAS" and Chevron Corporation signed a memorandum of understanding (MoU) to cooperate in the activities of transporting, importing and liquefying the export of East Mediterranean gas.
Chevron, which is an American multinational energy corporation, drilled its first exploration well in its concession area in the Mediterranean Sea in September.
Moreover, Chevron affirmed its readiness to play an active role and cooperate with regard to projects to improve the environmental conditions of the energy industry.
According to the agreement, the two companies assess the potential opportunities to transfer the gas available in the eastern Mediterranean to Egypt to maximize its value by liquefying it to be re-exported and sold; so that it is economically feasible for both parties; including conducting any necessary study for the production of low carbon LNG.
Chevron participates with its investments in the search for gas in the western Mediterranean in the regions north of Sidi Barani, Narges, and North El Dabaa, and in Sector 1 in the Red Sea, which it won in the first bid put forward by the Ministry of Petroleum and Mineral Resources for the development and exploitation of oil and gas in the Red Sea regions, in addition to the activity of marketing high-quality oils.
Egypt's exports of natural and liquefied gas amounted to about $8 billion in the fiscal year 2021/2022, according to a cabinet statement.
Previously, Finance Minister Mohamed Maait said that Egypt earns about $500 million per month from natural gas exports and aims to raise that number to $1 billion in the coming period.
The government has implemented a plan to rationalize electricity consumption in order to provide natural gas used in the stations in order to export it abroad in light of the high global prices.
Egypt's exports of natural gas rose, after starting to implement a plan to rationalize electricity consumption in August, according to what Prime Minister Mostafa Madbouly said in mid-September.
The Cabinet amended the method of calculating the selling prices of natural gas for nitrogenous fertilizer factories, to become according to a new price equation, so that it is not less than $4.5 per million British thermal units.
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