Egypt has made one of its most significant offshore gas discoveries in years — a find in the Mediterranean estimated at approximately two trillion cubic feet of natural gas plus around 130 million barrels of condensate, signalling a potentially transformative addition to the country’s hydrocarbon reserves and a major boost to its ambitions to reduce costly energy imports.
The discovery was made by the Al-Qaher-2 drilling rig, which completed operations at the Denise West-1 exploratory well in the Enibp Temsah concession. Prime Minister Mostafa Madbouly visited the rig to mark the milestone, accompanied by Petroleum Minister Karim Badawi, who described the find as one of the most significant in recent years. Drilling was carried out at a water depth of approximately 98 metres, using directional drilling technology to penetrate depths exceeding 4,000 metres and reach the gas-bearing formations. The rig is operated by the Modern Drilling Company using the latest available technologies, and the concession is run by Petrobel — the joint venture between Eni and the Egyptian General Petroleum Corporation.
Badawi said the Denise discovery is a direct result of the government’s programme to settle long-standing dues owed to foreign partners, a strategy that has accelerated drilling commitments and unlocked new exploration activity across Egypt’s Mediterranean acreage. The incentive agreement reached in 2025 with Temsah concession partners was specifically credited with fast-tracking the drilling programme that led to the find. “This discovery is among the most significant in recent years and supports efforts to increase domestic production and reduce the import bill,” Badawi said.
The Prime Minister said the government is simultaneously preparing integrated infrastructure to receive liquefied natural gas imports — including regasification vessels — while pressing ahead with efforts to expand domestic production, signalling a twin-track strategy to plug Egypt’s supply gap as rapidly as possible. Badawi also highlighted the momentum building across Egypt’s broader energy sector, citing announced investment plans of $8 billion from Eni, $5 billion from bp, $2 billion from Emirati company Arcius, expanded Shell investments in Mediterranean gas exploration, and Apache’s $4 billion-plus expansion in the Western Desert as evidence that the debt settlement strategy is generating tangible commercial results.
Source: Egypt Oil & Gas