ExxonMobil makes natural gas discovery in Egypt

ExxonMobil Corporation has announced a significant natural gas discovery off the northern coast of Egypt in the Mediterranean Sea. The Nefertari-1 exploration well, drilled in the North Marakia Block approximately five miles offshore, encountered gas-bearing reservoirs.

The company is now evaluating the results to determine the potential scale and commercial viability of the discovery. The well was drilled using the Valaris DS9 drillship, with ExxonMobil operating the block alongside its partner, QatarEnergy, which holds a 40% stake following a sale in 2022. ExxonMobil initially acquired the North Marakia block in 2019, reflecting its strategic interest in the Eastern Mediterranean.

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Gas exploration

The Eastern Mediterranean has garnered significant attention as a gas exploration hotspot, with major discoveries since 2009, including Israel’s Leviathan and Tamar fields. The region’s proximity to Europe and the Middle East, both major energy markets, underscores the economic appeal of such finds. Major players like Chevron, BP, Shell, and Eni have ongoing exploration and production projects in the area.

Egypt’s natural gas production has recently been in decline, reaching its lowest levels since 2017. This has forced the nation to increase liquefied natural gas (LNG) imports, adding pressure on its already strained foreign currency reserves. In response, the Egyptian government has committed to regular repayment schedules to settle debts owed to foreign energy companies, aiming to attract further investment and revitalize production.

Egypt aspires to re-establish itself as an energy hub, with plans to resume substantial natural gas exports by 2027. Major developments are underway to support this goal include; Eni’s Zohr Field, BP’s Raven Field and Apache. ExxonMobil’s find could enhance Egypt’s position in the Eastern Mediterranean’s competitive energy landscape.