Apache Corp. Discovers Gas in Egypt's Desert
Why this is here: The new gas discovery's proximity to Apache’s existing operating areas is expected to reduce costs, as it allows the company to utilize current infrastructure and production facilities.
Apache Corp. and Egyptian General Petroleum Corp. discovered gas in Egypt’s South Kalabsha desert area. The discovery occurred after drilling the SKAL-1X exploration well. Initial tests show daily production of approximately 736,000 cubic meters of gas and 2,700 barrels of condensate.
Egypt’s Ministry of Petroleum stated the discovery reflects incentives introduced to encourage exploration and investment. Apache expanded exploration activities near existing concessions due to these measures. The ministry noted the location near existing infrastructure will lower costs and speed up production.
Egypt launched new incentives in August 2024 to boost resource exploration and increase production. Apache’s investments in Egypt’s oil sector rose to $2.7 billion in 2024, up from $2 billion in 2023. The company plans to drill 34 exploration and development wells in 2026 with an estimated $150 million investment.