Denise W 1 exploration well. Photo courtesy of Egyptian cabinet.
The newly drilled Denise W 1 exploration well is also expected to produce 130,000 barrels of condensate daily. It is located in Egypt’s Temsah Concession, 70 kilometres offshore in a 95-meter depth of water and less than 10 kilometres from existing infrastructure, the Temsah gas field, allowing operational and development efficiency.
The Denise field follows an agreement signed in July 2025 for a 20-year renewal of operation in the Temsah Concession area with the Egyptian General Petroleum Corporation (EGPC) and the Egyptian Natural Gas Holding Company (EGAS).
Eni is the operator of the Denise Development Lease and holds a 50 percent contractor working interest, while British Energy Giant British Petroleum (BP) holds the other 50 percent.
It’s worth noting that contract working interest in the oil and gas sector means a percentage of ownership in the oil and gas well lease, which allows the firm to explore, drill, and produce oil and gas from the property.
The percentage holder is also accountable for a portion of leasing, drilling, operation, and maintenance costs for the well.
Furthermore, this discovery comes amid rising energy demand in Egypt, with the country looking to increase its domestic energy production, secure more LNG shipments, and adjust its supply flows amid rising energy prices due to the US-Israeli war on Iran, which has caused disruptions in supply chains and rerouting of vessels, and pushed global prices of crude oil and petroleum products to new high record levels.
Egypt’s domestic production stands at almost 4.1 billion cubic feet per day, while its demand is around 6.2 billion cubic feet per day.
Egypt has implemented a backup plan to secure natural gas and petroleum products, to ensure grid stability and sufficient power supply for the expected six to seven percent rise in local electricity consumption this summer.
The government has recently increased local fuel and gas prices by 14 percent to 30 percent as global crude prices surged. It also introduced several measures, such as a temporary closure time of 9 pm for one month, to reduce energy consumption.
Earlier this week, the Export-Import Bank of the United States (EXIM) approved more than $2 billion in export credit insurance to facilitate US liquefied natural gas exports to Egypt, which are scheduled to arrive between 2026 and 2027.
While EGAS inked a $500 million agreement to develop the Harmattan gas field in the Mediterranean with Arcius Energy the week prior, a BP and Adnoc subsidiary’s Joint Venure, on the sidelines of Egypt Energy Show 2026.
Moreover, the Ministry of Petroleum and Mineral Resources will also continue drilling over 100 exploratory wells in 2026 for LNG, and develop existing wells under a five-year strategy to maximize resources and secure new reserves.
The ministry will also settle all remaining arrears and payments owed to oil and gas production partners, estimated at around $1.3 billion, by the end of June 2026, down from around $6.1 billion in mid-2024.
Eni, which contributes around 40 percent of Egypt’s natural gas production, is planning on investing around $8 billion into the country over the next five years.
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