Eni has announced a gas and condensate discovery in Egypt, following the successful drilling of the Denise W-1 exploration well in the Temsah Concession, located offshore in the Eastern Mediterranean. Preliminary estimates indicate about 2 Tcf (57 bcm) of gas initially in place (GIIP) and 130 mbl of associated condensates (Eni press release, 07/04/2026).
The drilling of Denise W-1 follows the binding agreement signed in July 2025 with Egyptian General Petroleum Corporation and Egyptian Natural Gas Holding Company (EGAS) for a 20-year renewal of the Temsah Concession. The Denise W-1 well is now being prepared for testing. Once completed, additional wells will be drilled and an offshore production platform will be constructed before the field can be brought online. Eni operates the project with a 50% working interest, alongside UK-based BP, which holds the remaining 50%, through their joint venture Petrobel.
The announcement comes as Egypt is affected by the Middle East conflict, while the country relies heavily on gas imports from the region, mainly from Israel, which has faced production cuts. The Egyptian Prime Minister stated in March 2026 that the conflict had nearly tripled Egypt’s natural gas import bill, from USD560m to USD1.65bn per month (Euronews, 07/04/2026).
According to our data, Egypt’s gas production has been declining rapidly since its peak in 2021 at 71 bcm (-14%/year), reaching 45 bcm in 2024. This decline is mainly due to reduced output from the country’s largest gas field, Zohr gas field. Gas production had previously grown rapidly following the commissioning of the Zohr field in 2017 (+7%/year over 2017–2021). Egypt has been importing increasing volumes of natural gas from Israel since 2020. The country became a net gas importer in 2023, with imports doubling in 2024 to reach 13 bcm (Enerdata Global Energy Research).