Egypt discovers 8 million barrels of oil in Gulf of Suez

The drilling of the East Crystal-1 well was carried out by Dragon Oil, a wholly owned subsidiary of the Emirates National Oil Company

Egypt has announced the discovery of at least eight million barrels of oil in the East Crystal-1 well in the Gulf of Suez, according to the petroleum ministry on Wednesday. The exploratory well was drilled by UAE-based Dragon Oil through the Gulf of Suez Petroleum Company (GUPCO).

Dragon Oil, a wholly owned subsidiary of the Emirates National Oil Company (ENOC), carried out the drilling through its joint venture, GUPCO. The ministry stated that this discovery aligns with its strategy to enhance domestic oil and gas production, aiming to reduce reliance on imports.

Initial tests on the 16-foot-thick Hawara layer revealed a daily output of over 2,000 barrels of crude oil. Meanwhile, the deeper honey layer, which exceeds 100 feet in thickness, has yet to undergo testing.

The ministry confirmed that the estimated pre-drilling stock of approximately eight million barrels was validated through the new well’s exploration. The well, located within the Gulf of Suez’s integrated concession area, may hold even greater reserves than initially expected.

To further develop the discovery, GUPCO plans to drill two additional wells, potentially increasing production by more than 5,000 barrels per day.

The East Crystal-1 well is the second successful exploration using Ocean Bottom Node (OBN) seismic survey technology, following the S. El-Wasl-1 well.