KEY POINTS
- Chevron has begun drilling a new well at Egypt’s offshore Nargis gas field to accelerate development.
- The project is a joint venture involving Chevron, Eni, Mubadala Energy, and Tharwa Petroleum, under Egypt’s energy expansion strategy.
- The field holds about 3.5 tcf of gas and is expected to begin production to boost supply and reduce Egypt’s import dependence.
Chevron has commenced drilling operations for a new well at the Nargis natural gas field located in Egypt’s Mediterranean offshore basin. The drilling activity marks a new phase in efforts to fast-track production from the field, which is operated by Chevron in partnership with Eni, Mubadala Energy, and Egypt’s Tharwa Petroleum Company.
The launch of operations was witnessed by Egypt’s Minister of Petroleum and Mineral Resources, Karim Badawi, aboard the Stena Forth drillship, which recently arrived in Egyptian waters to begin the offshore drilling campaign. The minister described the development as a key step in Egypt’s broader energy strategy.
Strategic goal: boost gas output and reduce imports
Egypt sees the development of the Nargis field as central to its strategy of increasing domestic natural gas production and reducing reliance on imports. The government aims to bring new offshore assets into production to strengthen energy security and support growing domestic demand.
Officials emphasised that expanding production capacity will also help stabilise the country’s energy supply and enhance its position in regional gas markets. The drilling of the new well is therefore considered a crucial milestone in achieving these long-term objectives.
The Nargis field, discovered in December 2022, is estimated to contain around 3.5 trillion cubic feet (tcf) of natural gas reserves. It is considered one of Egypt’s promising deepwater gas assets, with commercial production expected to begin under current development plans.
Chevron holds a 45% operating stake in the project, alongside Eni’s subsidiary IEOC, which also owns 45%, while Tharwa Petroleum Company holds the remaining 10%. The partnership structure reflects Egypt’s strategy of combining international expertise with local participation to accelerate offshore gas development.
