ExxonMobil Begins Gas Exploration in Egypt before Year-end with Investments of $100 Mln

The U.S. giant ExxonMobil intends to drill its first exploratory well in Egypt in October, in search of natural gas in the North Marakia concession area located in the waters of the Mediterranean, at an initial investment cost estimated at about $100 million, according to Bloomberg.

Egypt awarded the North Marakia Basin exploration concession to ExxonMobil in 2020. The basin covers an area of 4,847 square kilometers, in an area up to 2,000 meters deep.

Qatar Energy participates with a 40% stake in the contractor’s share in the offshore area, while a subsidiary of ExxonMobil owns 60%.

Bloomberg added that ExxonMobil is planning to drill 3 exploratory wells in the concession area, and is also preparing to begin seismic surveys in two other concession areas affiliated with it, which are “Masry” and “Cairo” in the waters of the Mediterranean Sea during 2024, after the Egyptian Parliament ratified their agreement in 2023.

The two areas are located within the outer framework of the Nile Delta, with an area of ​​more than 11,000 sq-km, and are 100% owned by ExxonMobil Egypt Upstream.

Egypt's average daily production of natural gas currently stands at 5.5 billion cubic feet, a decline of about 5% from its levels in 2023, when it reached about 5.8 billion cubic feet per day, and a decline of 25% from the highest level of 7.2 billion cubic feet in September 2021.