Italy’s Eni has made a gas and condensate discovery in Egypt that could meet the growing power demand in the Arab world’s most populous nation.
The find was made after the drilling of the Denise W1 exploration well in the Temsah Concession in the Eastern Mediterranean, Eni said in a statement on Tuesday.
Preliminary estimates indicate the presence of about 2 trillion cubic feet of gas initially in place (GIIP) and 130 million barrels of associated condensates at the well, which is 70km off the Egyptian coast.
Eni did not provide details on when production would start, but said the discovery is less than 10km from existing infrastructure, which enables “substantial synergies for a fast-track development”.
“The discovery reinforces Eni’s commitment to supporting Egypt’s national goals of boosting reserves and increasing gas production, thereby strengthening the country’s energy security,” the company said.
Egypt, an important gas producer in the Eastern Mediterranean, has experienced a domestic production decline in recent years, despite big discoveries such as the Zohr gasfield. The fall has forced it to import expensive liquefied natural gas from Middle East markets to meet its domestic demand.
In December, Egypt signed a $35 billion agreement with Israel to import gas from the Leviathan field to meet its domestic deficit.
Egypt's economy has been jolted since 2020 by the Covid-19 pandemic, the Russia-Ukraine war and the conflict in Gaza. However, the government said the Iran war is the worst crisis of all, primarily because of the resulting surge in oil and gas prices.
The Egyptian government last month raised domestic fuel and gas prices by as much as 30 per cent, reduced fuel allocations for government vehicles and ordered restaurants, cafes, shops, malls, theatres and cinemas to close earlier – at 9pm on weekdays and an hour later on weekends.
The drilling of Denise W1 follows a binding agreement Eni signed in July 2025 with Egyptian General Petroleum Corporation (EGPC) and EGAS for a 20-year renewal of the Temsah Concession.
Eni has a 50 per cent stake in the Denise Development Lease of the Temsah Concession alongside BP, which holds the remaining 50 per cent. It is operated through Petrobel, the joint venture operating company between Eni and EGPC.
Eni has been active in Egypt since 1954 and holds a diversified portfolio spanning exploration, development and production, with oil and gas production of 242,000 barrels of oil equivalent per day in 2025.
The company is advancing plans for gas developments across the Eastern Mediterranean and North Africa, as it seeks to fast-track supply into Europe through Egypt’s existing LNG infrastructure, Guido Brusco, chief operating officer of global natural resources at Eni, told The National in January.
Eni's plans to undertake the final investment decision on the Cronos gasfield, estimated to hold more than 3 trillion cubic feet of gas, are on hold. The field was discovered by Eni and France's TotalEnergies in 2022.
Dragon Oil discovery
Separately, Dragon Oil, a company fully owned by Emirates National Oil Company, also announced a new oil discovery following the successful drilling of the South El Wasl ‘B.B2’ exploration well in the Gulf of Suez, with initial testing results indicating production rates above 2,000 bpd of oil.
Gulf of Suez Petroleum Company and EGPC are other partners involved in the project, UAE news agency Wam reported on Tuesday.
