Dragon announces new oil discovery in Egypt’s Gulf of Suez

UAE energy company Dragon Oil, wholly owned by the Dubai-government-owned Emirates National Oil Company (ENOC), has announced a new oil discovery in Egypt’s Gulf of Suez, in partnership with GUPCO and the Egyptian General Petroleum Corporation, according to a statement on April 7, cited by Al Ahram and local sources. 

Dragon Oil has committed to investing at least $3bn over the coming years to expand its footprint in Egypt, focusing on renewing concession agreements and implementing advanced 3D seismic technology.

The discovery was made through the drilling of the South El-Wasl exploratory well, as part of ongoing efforts to expand exploration activities and boost production in the region. According to well logging data, the discovery includes a hydrocarbon reservoir within the Lower Rudeis formation, with an estimated original oil in place of around 8 million barrels.

Initial well tests have indicated promising production rates exceeding 2,000 barrels of oil per day, suggesting strong commercial potential for the discovery.

The achievement follows the implementation of an integrated programme of geological and geophysical studies, alongside the application of advanced three-dimensional seismic survey technologies. Ocean Bottom Node (OBN) technology played a key role in identifying promising geological structures and high-potential exploration targets, according to the statement.

The discovery aligns with broader strategies to maximise hydrocarbon resources and support future output growth in Egypt’s energy sector. Further appraisal and development plans are expected to follow in the coming period.

Earlier, Italian energy major Eni (BIT:ENI) announced a significant discovery of natural gas and condensates off Egypt’s Mediterranean coast, a development that could also bolster the country’s energy outlook.