Egypt expands drilling at Zohr gas field as output recovery efforts continue
Egypt’s petroleum ministry said on Tuesday that drilling is underway at three new wells in the Zohr gas field in the Mediterranean during the current financial year, part of efforts to reverse declining production at the country’s flagship offshore asset, Reuters reported.
The ministry added that the Zohr-6 well, which came online recently, has already added about 65 million cubic feet per day (mmcfd) of gas to national output.
Zohr, discovered by Italian energy group Eni in 2015 and brought into production in late 2017, is the largest natural gas field ever found in the Mediterranean, with estimated reserves of around 30 trillion cubic feet. At its peak in 2019, the field was producing more than 3 billion cubic feet per day, but output has since slipped sharply, dropping to about 1.9 billion cubic feet per day in early 2024.
Eni, which operates the field through Petrobel — a joint venture with state-owned Egyptian General Petroleum Corp (EGPC) — resumed drilling at Zohr in February. The step followed a slowdown linked to payment arrears Egypt owes international oil companies, an issue that has weighed on upstream investment in recent years.
The restart of new well development underscores Egypt’s push to stabilise and expand domestic production at a time of rising energy demand and pressure on foreign currency reserves. Declining gas output in 2023 forced Cairo to scale back liquefied natural gas (LNG) exports, reducing its ability to capitalize on high global prices and putting stress on domestic power generation.
The Egyptian Ministry of Petroleum and Mineral Resources said the drilling campaign reflects its “commitment to increasing gas supplies” and ensuring sufficient fuel for both domestic consumption and exports. Industry analysts say sustained investment will be crucial to maintain Zohr’s role as the backbone of Egypt’s gas sector.
“Zohr remains the centerpiece of Egypt’s gas portfolio, but the field is maturing and natural declines are evident,” said an industry consultant based in Cairo. “New wells can help offset that decline, though broader investment conditions will determine how quickly production can recover.”
Egypt has positioned itself as a regional gas hub in recent years, exporting LNG to Europe and neighboring countries while importing Israeli gas for domestic use and re-export. Maintaining robust production at Zohr is key to those ambitions, alongside ongoing developments in the West Nile Delta and other offshore concessions.
The government is also under pressure to manage its financial obligations to foreign partners. Payment delays have led some international companies to scale back exploration, complicating efforts to sustain long-term growth in the gas sector.
Still, Tuesday’s announcement signals that Zohr remains a top priority. With three new wells in progress and additional work expected, officials hope the field can gradually lift output levels and strengthen Egypt’s energy security.
