Egypt’s Ministry of Petroleum and Mineral Resources announced a new natural gas discovery in the Nile Delta with an estimated production capacity of around 50 million cubic feet per day. The discovery followed the successful drilling of the Nidoco N-2 exploratory well in the West Abu Madi area of Kafr El Sheikh governorate. The concession area is operated by Eni in partnership with BP.
Minister of Petroleum and Mineral Resources Karim Badawi inspected the EDC-56 drilling rig that conducted operations in the West Abu Madi area of Kafr El Sheikh governorate, around 3 km offshore in shallow waters at a depth of approximately 10 metres. The well was drilled from onshore using advanced directional drilling technologies, helping reduce costs and improve operational efficiency.
The minister said the discovery, alongside increased output from existing fields, reflects the success of the petroleum sector in settling outstanding dues to foreign partners, with full clearance targeted by the end of June. He added that this progress demonstrates the state’s commitment to strengthening confidence with international partners and improving the investment climate.
Badawi noted that the regular settlement of dues has encouraged partners to intensify exploration activities, increase drilling and production rates, and expand the development of mature fields through extended concession agreements, thereby attracting new investment to the sector. He also pointed out that the well’s proximity to existing infrastructure—less than 2 km from the nearest production facilities—will allow it to be quickly connected to the network within weeks, enabling early production and improving capital efficiency.
The minister revealed that the debt owed to international investment partners in oil and gas production has fallen sharply from $6.1bn in June 2024 to about $714m in April 2026, bringing the sector closer to achieving “zero arrears” by the end of next June. The West Abu Madi development area is operated by Eni in partnership with BP and the Egyptian General Petroleum Corporation through Petrobel, a joint venture between EGPC and Eni.