Register for MEED’s 14-day trial access 

UAE-based Dana Gas has made an onshore gas discovery in Egypt’s Nile Delta area, according to a statement from the company.

The discovery was made by the drilling of the North El-Basant 1 exploratory well, and initial well results indicate estimated reserves of 15-25 billion cubic feet of gas.

Production from the reserve is expected to exceed 8 million cubic feet a day (cf/d) once the well is connected to the national network.

The North El-Basant 1 exploratory well was the fourth well in a campaign of 11 development and exploration wells.

The campaign is being executed as part of the company’s $100m investment programme to support domestic gas production, increase reserves and meet growing energy demand.

Earlier this year, Dana Gas completed the drilling of three wells, adding 10 million cf/d.

The programme is expected to increase long-term production and add approximately 80 billion cubic feet of recoverable gas reserves, according to Dana Gas.

Dana Gas expects to start drilling the fifth well in the programme, the Daffodil exploration well, in the first week of January 2026.

Richard Hall, the chief executive of Dana Gas, said: “The latest drilling success reinforces the value of our investment programme in Egypt and highlights the significant remaining potential within the Nile Delta.”

He added: “By increasing local gas production, the programme will help reduce Egypt’s reliance on imported liquefied natural gas (LNG) and fuel oil and is expected to generate more than $1bn in savings for the national economy over time.”

Previously, Dana Gas signed an agreement with state-owned Egyptian Natural Gas Holding Company (EGas) to secure additional acreage under improved fiscal terms, and to accelerate drilling activity.

Hall said: “We appreciate the strong cooperation from EGas and the ministry, and we remain committed to delivering the majority of our planned programme next year.

“Regular and timely payments from our partners are crucial to sustaining our investment programme in Egypt."

In November, a new gas discovery was made in Egypt’s Western Desert region by Khalda Petroleum Company, a joint venture of state-owned Egyptian General Petroleum Corporation and US-headquartered Apache Corporation.

Egypt also started gas production from the West Burullus field in the Mediterranean Sea, after connecting the first wells to the national gas grid.

The country is currently pushing to increase gas production in order to meet domestic demand and reduce its import bill.