Cheiron from Egypt announced the discovery of oil in the Geisum and Tawila West concessions in the Gulf of Suez, as the country seeks to increase its energy production. Cheiron stated in a statement that this discovery was made by oil and gas companies through the exploration well GNN-11, which currently produces over 2500 barrels per day.

The company stated that the total oil production of the concession has reached 23000 barrels per day, compared to 4000 barrels per day before the development of the GNN oilfield. Cheiron holds 60% of the working equity in the concession, while Kuwait's foreign oil exploration company holds the remaining 40% of the shares.

The new discovery in Nubia confirms the exploration potential of the northern part of the concession, and Cheiron and Kufpec plan to drill at least three more exploration wells in the concession area, the company said.

In a broader sense, this discovery also indicates that although the Gulf of Suez is a relatively mature hydrocarbon province, it still has enormous remaining exploration potential. Egypt is the third largest economy in the Arab world and has been seeking to increase natural gas production to meet growing domestic demand and exports to Europe.

In 2022, Egypt's natural gas exports reached $8.4 billion, a year-on-year increase of 171%, due to the energy crisis in Europe driving up demand for this fuel. In December, Egypt discovered a large gas field with a potential reserve of 3.5 trillion cubic feet of natural gas near its northeastern Mediterranean coastline. This discovery occurred in Nargis, one of the four offshore exploration blocks in which American oil company Chevron and Egyptian oil company Tava have operating interests.

According to data from the International Energy Agency, due to the surge in demand in Europe, the global trade in liquefied natural gas reached a high of $450 billion in 2022. Despite the increase in demand, the supply of liquefied natural gas only increased by 5.5% last year, mainly due to the maintenance of large export terminals and the free port liquefied natural gas factory located in Texas, one of the world's largest centers for subcooled fuel exports.Editor/XingWentao