Eni Plans $100 Million Gas Drilling Campaign in Egypt to Boost Production

Italy’s energy major Eni is planning to drill two new natural gas wells offshore Egypt at a total cost of around $100 million, as Cairo moves to shore up domestic gas supplies amid rising demand and declining output from mature fields.

A senior Egyptian government official told Asharq Business that drilling is expected to begin in July at the Denis gas field, located within the Temsah offshore concession in the Mediterranean Sea, off the coast of Port Said. The two wells are expected to produce a combined 200 million cubic feet of gas per day, with commercial output slated to be connected by early 2027.

The official, who requested anonymity because the plans have not been formally announced, said the water depth at the Denis field is approximately 98 meters, while drilling depths beneath the seabed exceed 4,000 meters, underscoring the technical complexity of the project.

The drilling program comes as Egypt seeks to stabilize national gas production, which currently averages around 4.2 billion cubic feet per day, despite a natural decline rate estimated at 100 million cubic feet per month, according to the same official.

Domestic gas demand stands at roughly 6.2 billion cubic feet per day, driven by power generation, industry, and population growth, widening the gap between supply and consumption and increasing pressure to accelerate new developments.

To address this, the Ministry of Petroleum and Mineral Resources is working with international energy companies to fast-track new projects. Authorities aim to complete five new gas developments in the next fiscal year, with combined investments estimated at $1.6 billion.

Beyond the Denis field, Egypt is in talks with Eni over additional large-scale investments. Government officials said negotiations are underway to develop a floating offshore processing unit at the giant Zohr gas field, alongside a new onshore facility to treat produced water, with potential investments approaching $2 billion.

Eni is also seeking to expand its footprint onshore. The company plans to build a new gas processing plant at the Meleiha concession in Egypt’s Western Desert, with an estimated cost of $180 million and a processing capacity of 100 million cubic feet per day, according to officials familiar with the project.