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Chevron (NYSE:CVX) and Eni (NYSE:E) said on Sunday they made a “significant” gas discovery offshore Egypt in the Eastern Mediterranean sea that is set to be fast-tracked to production with existing infrastructure.
The Nargis-1 well is part of Egypt’s Nargis offshore concession operated by Chevron (CVX), which holds a 45% stake; Eni (E) also holds a 45% share, and Egypt’s Tharwa Petroleum owns 10%.
The well was drilled to a total depth of more than 5K meters, with the reservoirs intercepted in a 140-meter gross pay zone, Egypt’s gas regulator said, adding that reserves estimates are being assessed for the discovery.
Chevron (CVX) said it is “encouraged and excited by the success of this first exploration well which encountered high-quality reservoirs,” according to Clay Neff, president of Chevron International Exploration and Production.
After a decade of record high capital expenditure, Chevron (CVX) is “now among the best-positioned global energy companies to grow production and invest in new technologies,” Vladimir Dimitrov writes in an analysis posted recently on Seeking Alpha.