Egypt has estimated the initial natural gas reserves at the newly announced "King Mariout" discovery in the North Mediterranean at between 3 and 4 trillion cubic feet, according to "Asharq" News.
The announcement comes just hours after Egyptian Prime Minister Mostafa Madbouly confirmed the discovery, which was made by British energy giant BP.
BP began drilling two wells in the "King Mariout" and "Fayoum" offshore concessions in the West Nile Delta in January, with an investment of approximately $160 million.
According to one official, the state-owned Egyptian Natural Gas Holding Company (EGAS) has initiated preliminary negotiations with BP to determine the necessary infrastructure for starting gas production from the "King Mariout" field.
The aim is to bring the discovery online by the third quarter of this year.
The second official noted that drilling is still underway on the second well in the "King Mariout" concession to confirm commercially viable production rates, with completion expected in the second quarter.
Egypt currently consumes around 6.2 billion cubic feet of gas per day, while its domestic production stands at approximately 4.3 billion cubic feet daily. The government is targeting an increase in natural gas output to 5 billion cubic feet per day by the end of the year.
BP’s latest exploration activity in the West Nile Delta is part of its broader strategy to discover new gas-bearing formations and integrate them quickly into production infrastructure if commercially viable reserves are confirmed.
To encourage further investment, the Egyptian government has introduced incentives for foreign energy companies, including allowing them to export a portion of new production to settle outstanding dues. Additionally, Egypt has increased the price foreign companies receive for their share of new gas output.
The Ministry of Petroleum and Mineral Resources has yet to issue an official comment on the discovery.
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