On Thursday, May 21, the Egyptian Ministry of Petroleum announced that Agiba Petroleum Company, a joint venture between the Egyptian General Petroleum Corporation and Italian energy giant Eni, has made its largest discovery in the Western Desert in 15 years.
The discovery, confirmed by an exploratory well, contains an estimated 330 billion cubic feet of natural gas along with 10 million barrels of condensate and crude oil, for a total of about 70 million barrels of oil equivalent.
The discovery’s location adds to its appeal, as it is located just six miles from existing infrastructure. Officials say it can be brought into production quickly and without the cost of building new facilities. Furthermore, the well exposed multiple sandstone and limestone reservoirs with a net production thickness of 400 feet.
The Egyptian Ministry of Petroleum framed the discovery as evidence that incentive programs for partner companies are paying off, encouraging companies to continue exploration near already producing fields and deploy advanced data analysis techniques to improve their chances of success.
This announcement comes at a time when Egypt is working to reverse the years-long decline in production from old fields and ease pressure on the energy sector, as domestic demand has exceeded production. The government is seeking to attract foreign investment in the field of oil and gas through new incentive packages, hoping to increase production, reduce the import bill and support its strained foreign currency reserves.
Eni has been one of Egypt’s most active energy partners, and the latest discovery strengthens the country’s position before international energy companies that Western Sahara still holds great untapped potential.