North Africa’s third-largest oil producer uncovers new offshore well in Gulf of Suez

Egypt’s Ministry of Petroleum and Mineral Resources announced a new offshore oil discovery in the Gulf of Suez, expected to add around 3,000 barrels per day (bpd) to the country’s crude production.

The well, Northeast Ramadan Crystal (NER-1X), is located in the North-East Ramadan Concession and was drilled by the Gulf of Suez Petroleum Company (GUPCO), a joint venture between the Egyptian General Petroleum Corporation (EGPC) and the UAE’s Dragon Oil.

Early production is already being carried out using the existing Al-Fanar platform, reducing the need for new offshore infrastructure and lowering development costs, according to Egypt Oil & Gas.

The discovery was aided by Ocean Bottom Node (OBN) seismic technology, which allowed geologists to identify previously inaccessible formations beneath the seabed.

The ministry said the technology improved exploration efficiency in the Gulf of Suez basin and accelerated development timelines.

Despite domestic production, Egypt, home to roughly 112 million people, still imports crude and petroleum products, particularly refined fuels such as diesel, gasoline, and jet fuel, because local refineries cannot fully meet domestic demand.

Meanwhile, the latest Gulf of Suez discovery marks the third major find since June, building on two recent exploration successes in the Western Desert.

Business Insider Africa reported that EGPC had announced a new oil and gas find in the Abu Sennan brownfield, the second in that area within three months, after an earlier strike in March.

Both Western Desert discoveries were supported by artificial intelligence tools applied to reservoir and seismic analysis, highlighting the potential to unlock additional resources from mature fields.

Since July 2024, Egypt’s petroleum sector has recorded 75 new oil and gas discoveries and brought 383 wells into production, according to ministry data.

Natural gas output has reached roughly 4.2 billion cubic feet per day (bcf/d), while crude oil production remains stable at 540,000 bpd.

According to Petroleum and Mineral Resources Minister Karim Badawi, the country plans to invest $1.2 billion to drill 110 exploratory wells, forming part of a broader $7.2 billion program to drill 586 wells by 2030, reflecting its commitment to expanding upstream capacity.