3 European oil giants discover natural gas offshore Egypt

Three European oil giants Royal Dutch Shell, French Total and British Petroleum recently made a new natural gas discovery in the Bashros well in the North El Hamad license block located offshore Egypt.

Although Eni pointed out that the test rate is limited by surface test equipment, the discovery well is reported to be able to produce up to 32 million standard cubic feet per day of natural gas during the test period. According to Eni's data, the daily production capacity of the Bashrush well is expected to reach 1 million cubic meters of natural gas and 800 barrels of condensate.

Eni said that Eni and its partners will continue to screen the development options of the Bashrush well, with a view to achieving rapid production through synergy with the existing infrastructure in the area.

Total’s senior vice president of exploration, Kevin McLachlan, said in a statement posted on the company’s website: “We are very pleased to announce this important natural gas discovery offshore Egypt.”

McLachlan added in the statement: "These results support our strategy of using a large part of our exploration budget to find new oil and gas resources near existing infrastructure."

McLachlan continued: “The development cost of these resources is very low because they can quickly connect to existing infrastructure and put into production.”

Eni, through its subsidiary IEOC, holds a 37.5% stake in the North El Hamad Lease Area, BP holds a 37.5% stake, and Total holds the remaining 25%.