Shell Egypt NV has successfully uncovered a gas reservoir at the North East El-Ammiya block in the Mediterranean Sea, marking a significant achievement for the company's exploration campaign in the region.

The exploration, conducted at a water depth of approximately 820 feet (250 meters) below sea level in the offshore Nile Delta, confirmed the presence of a gas-bearing reservoir. However, further evaluation is needed to ascertain the size and recoverable potential of the discovery. Shell has enlisted Stena Drilling's mobile offshore drilling unit for the ongoing drilling campaign.

Shell Egypt's Vice President and Country Chair, Khaled Kacem, expressed the importance of this discovery, stating, "This discovery is an important step forward for Shell Egypt, bolstering our growth aspirations and ongoing commitment as a key partner in Egypt’s energy landscape." He emphasized the company's dedication to a safe and efficient exploration campaign, with the ultimate goal of progressing to the development phase of the block.

In September, Shell subsidiary BG International Limited entered into a farm-out agreement with Kuwait Foreign Petroleum Exploration Company (KUFPEC), where KUFPEC acquired a 40 percent stake in the North East El-Amriya block, leaving Shell with a 60 percent stake and continuing as the operator.

KUFPEC CEO Mohammad Salem Al-Haimer expressed satisfaction with the expanded partnership, highlighting KUFPEC's strategy to enhance its offshore assets and exploration activities in Egypt. He mentioned KUFPEC's existing activity in the region, having been awarded the North Ras Kanayes Offshore block in the Mediterranean Sea in 2020.

The proximity of Block 3 to Shell's existing assets and other exploration blocks in the area is expected to accelerate the company's offshore ambitions, contributing to Egypt's energy supply needs.

The release also revealed that Shell Egypt and its partners initiated drilling activities in the Nile Delta Blocks 3 and 4 in August. The exploration project includes three consecutively drilled wells.

In a separate announcement, KUFPEC Egypt Limited, a subsidiary of KUFPEC, disclosed a new oil discovery in the Geisum and Tawila West Concession in the Gulf of Suez, Egypt. The GNN-11 exploration well, drilled into a fault block to the east of the GNN oil field development, encountered 165 feet of good quality vertical net pay in the Nubia formation. This marks the first time the Nubia has been found to be oil-bearing in the GNN area of the concession.

The successful production from the GNN-11 well, currently producing over 2,500 barrels of oil per day, has significantly boosted gross oil production from the asset. The activities are overseen by Cheiron through its PICO GOS affiliate, holding a 60 percent working interest and operating the concession, with KUFPEC maintaining the remaining 40 percent interest. The PetroGulf Misr Joint Operating Company manages the field operations.