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Egypt, the third-largest oil producer in North Africa, has announced a significant offshore oil discovery in the Gulf of Suez. The new field, initially estimated to yield 3,000 barrels per day, bolsters domestic supply as Cairo continues to rely on imports to meet rising fuel demand.
According to Egypt’s Ministry of Petroleum and Mineral Resources, the discovery was made at the Northeast Ramadan Crystal (NER-1X) well, located within the North-East Ramadan concession area. The well is operated by the Gulf of Suez Petroleum Company (GUPCO), a joint venture between the Egyptian General Petroleum Corporation (EGPC) and the UAE’s Dragon Oil.
Initial production has commenced via the existing Al-Fanar platform, enabling swift integration into the current extraction system without additional offshore infrastructure. This approach accelerates development timelines and reduces investment costs.
The Ministry highlighted the critical role of Ocean Bottom Node (OBN) seismic technology in the discovery. OBN allows for high-resolution data collection from the seabed, enabling geologists to identify previously inaccessible or obscured hydrocarbon structures. This innovation has significantly enhanced exploration efficiency in the Gulf of Suez.
Egypt currently extracts crude oil and natural gas from multiple onshore and offshore regions, with the Gulf of Suez, Western Desert, and Nile Delta serving as primary production hubs. The country’s crude oil output stands at approximately 540,000 barrels per day, ranking third in North Africa behind Libya and Algeria.
Despite its production capacity, Egypt’s population of 112 million and growing fuel consumption necessitate imports of crude oil and refined products such as diesel, gasoline, and aviation fuel. Domestic refining capabilities remain insufficient to meet market demands.
The Gulf of Suez discovery marks Egypt’s third major oil find since June 2025, following two successful explorations in the Western Desert. Earlier, EGPC announced a new discovery at the Abu Sennan field, the second in the area within three months. Western Desert successes have been driven by AI-powered analysis of seismic and reservoir data, enhancing the identification of hydrocarbon traps in mature fields.
Since July 2024, Egypt has recorded 75 new oil and gas discoveries and brought 383 wells into commercial operation. Natural gas production averages 4.2 billion cubic feet per day, while crude oil output remains stable at 540,000 barrels daily.
Long-term strategies include a $1.2 billion investment to drill 110 exploration wells, part of a $7.2 billion program targeting 586 wells by 2030. Minister of Petroleum and Mineral Resources Karim Badawi stated that these initiatives aim to expand reserves, increase production, and reduce energy import dependency.
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