Eni Reports 2 Trillion Cubic Feet Discovery Near Existing Production Hubs in Egypt

Italian energy company Eni has announced a substantial new gas and condensate discovery in Egypt’s Eastern Mediterranean, with preliminary estimates indicating approximately 2 trillion cubic feet of gas initially in place and 130 million barrels of associated condensates.

The find, made through the Denise W 1 exploration well in the Temsah Concession, is expected to support accelerated development thanks to its proximity to existing production infrastructure.

According to an official Eni press release issued on Tuesday, the discovery well is located about 70 kilometres offshore in water depths of 95 metres and lies less than 10 kilometres from established facilities.

This positioning is anticipated to enable a fast-track development programme, leveraging synergies with the nearby Temsah field, which has been producing gas since 2001. The reservoir consists of high-quality gas-bearing sandstone with roughly 50 metres of net pay, similar to the characteristics of the adjacent producing field.

The announcement reinforces Eni’s long-standing commitment to supporting Egypt’s national objectives of expanding hydrocarbon reserves and boosting domestic gas production to enhance the country’s energy security.

Officials at Eni described the discovery as further validation of the company’s strategy of rejuvenating mature producing assets through targeted near-field exploration and infrastructure-led approaches.

The Denise W 1 well was drilled following a binding agreement signed in July 2025 between Eni, the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS) for a 20-year renewal of the Temsah Concession.

Eni operates the Denise Development Lease within the concession with a 50 per cent working interest, while bp holds the remaining 50 per cent.Operations are conducted through Petrobel, the joint-venture company established between Eni and EGPC.

Eni has maintained a presence in Egypt since 1954 and operates a diversified portfolio spanning exploration, development and production activities. In 2025, the company reported equity production of 242,000 barrels of oil equivalent per day from its Egyptian assets.

The new discovery is expected to contribute to sustaining and potentially increasing this output in the coming years. Industry analysts view the find as timely for Egypt, which has been working to strengthen its role as a regional gas hub.

The country has invested heavily in expanding its natural gas infrastructure, including liquefied natural gas export terminals and domestic power generation capacity. Additional gas reserves from the Denise W discovery could help meet growing domestic demand while supporting export ambitions to Europe and other markets.

The proximity of the new reservoir to existing pipelines, processing facilities and platforms in the Temsah area is likely to reduce development costs and timelines significantly compared with greenfield projects. Eni indicated that detailed appraisal work will now be undertaken to refine reserve estimates and optimise development plans.

This latest success builds on Eni’s track record of exploration achievements in Egyptian waters. The company has previously made several notable discoveries in the Mediterranean, contributing to the country’s emergence as an important gas producer in the region.

The Temsah Concession itself has been a cornerstone of Eni’s operations in Egypt for decades, and the renewal agreement secured last year provided the necessary stability for continued investment. Egyptian energy officials have welcomed the announcement as a positive step toward achieving national energy goals.

The discovery aligns with broader government efforts to attract international investment and modernise the hydrocarbon sector amid global energy transition pressures. For Eni, the find represents continued progress in its upstream portfolio at a time when the company is balancing traditional hydrocarbon activities with investments in renewable energy and low-carbon technologies.

The Italian major has repeatedly emphasised its dual focus on securing energy supply while advancing sustainability objectives. The development is also expected to generate economic benefits for Egypt, including potential job creation during the construction and operational phases of any future production facilities.

Local content requirements and partnerships with Egyptian entities are likely to play a key role in the project’s execution. While full field development plans are still being formulated, the technical similarities to the producing Temsah field suggest that production could be brought online relatively quickly once appraisal and engineering studies are completed. This would help maintain momentum in Egypt’s gas sector and support the country’s aim of increasing exports through existing infrastructure.

The discovery comes amid fluctuating global energy markets, where reliable gas supplies remain critical for both energy security and the transition away from higher-emission fuels.