Egypt Ramps Up Offshore Drilling to Boost Gas Production

Egypt is set to revitalize its natural gas sector as Italian energy giant Eni prepares to deploy the drilling vessel Saipem 10000 to the Zohr gas field in the eastern Mediterranean.

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The move, announced by Egypt’s Ministry of Petroleum and Mineral Resources, underscores the country’s efforts to counter declining domestic gas production and reinforce its status as a key player in the regional energy market.

A Declining Gas Output

Once heralded as a game-changer for Egypt’s energy landscape, the Zohr gas field—discovered by Eni in 2015—has faced production challenges in recent years. Average output at Zohr dropped to 1.9 billion cubic feet per day (bcf/d) in the first half of 2024, significantly below its 2019 peak. Meanwhile, Egypt’s overall gas production has been on a downward trajectory since 2021, reaching a six-year low in 2024.

The drop in production has complicated Egypt’s ambitions to become a major gas exporter. Energy shortages and increased domestic demand have further strained supply, leading to greater reliance on imported natural gas and fuel oil.

Eni’s Drilling Initiative