Egypt Announces New Oil and Gas Discoveries in Western Desert as Production Recovery Gains Momentum

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Ahmed Kamel – Egypt Daily News

Egypt has announced a series of new oil and gas discoveries in the Western Desert, signaling renewed momentum in the country’s efforts to boost domestic energy production and reduce reliance on imports after years of declining output.

The Ministry of Petroleum and Mineral Resources said discoveries were made at four exploration wells, with a combined estimated daily production capacity of nearly 4,500 barrels of crude oil and around 2.6 million cubic feet of natural gas. The finds are expected to provide incremental support to Egypt’s energy balance as demand continues to rise.

The discoveries were made by Khalda Petroleum Company, a joint venture between the Egyptian General Petroleum Corporation and U.S.-based Apache Corporation, alongside Tharwa Petroleum Company and Borg El Arab Petroleum Company. All three operators are active in the Western Desert, one of Egypt’s most prolific hydrocarbon regions.

Khalda Petroleum recorded two discoveries at the Sultan S-1X RC and Alex NW-1X wells, delivering a combined daily production rate exceeding 1,500 barrels of crude oil and approximately 1.7 million cubic feet of natural gas. The company has been among the most active producers in the Western Desert, benefiting from continued investment and advanced exploration techniques.

Tharwa Petroleum announced its discovery in the East Abu Sennan concession area at the EAS Z-3 well, where initial production reached around 1,500 barrels of oil per day. The company said testing operations are still underway, with final estimates of added reserves to be determined once evaluations are complete.

Meanwhile, Borg El Arab Petroleum confirmed the discovery of oil and gas at the AS Z-2X well in the Abu Sennan Development Area. Test results indicated potential production of about 1,305 barrels of oil per day, along with approximately 900,000 cubic feet of associated gas daily.

The latest discoveries come as part of a broader national strategy to reverse a prolonged decline in oil and gas output. At the end of last year, Egypt announced plans to drill 480 new exploratory wells over the next five years, backed by investments totaling around $5.7 billion. The program is designed to unlock new reserves, stabilize production, and support energy security.

According to the ministry, 101 exploratory wells are scheduled to be drilled in 2026 alone, spanning Egypt’s key producing regions, including the Western Desert, the Gulf of Suez, and the Mediterranean.

After four consecutive years of declining output, Egypt’s oil and gas production began to recover in September, offering much-needed relief to the country’s import bill and foreign currency position. The government has emphasized that even modest production gains can have a significant impact on reducing fuel imports and easing pressure on public finances.

Energy analysts say the Western Desert discoveries, while relatively small on a global scale, underscore the importance of sustained exploration activity and partnerships with international operators. They also reflect a renewed confidence in Egypt’s upstream sector, driven by improved investment terms, faster payment of arrears, and a clearer regulatory framework.

As Egypt continues to position itself as a regional energy hub, officials say further exploration success will be critical to meeting domestic demand, supporting industrial growth, and strengthening the country’s role in regional energy markets.

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