Eni, the Italian multinational energy company, marked a significant milestone on 10 October as it initiated drilling operations for the Orion-1X exploration well in the Northeast Ha’py exploration license, situated in the offshore Nile Delta. 

The Saipem Santorini drillship, equipped with state-of-the-art technology and expertise, is currently engaged in operations in a challenging water depth of 730 metres. This endeavor is part of Egypt’s ambitious plan to propel its energy sector forward by drilling up to 35 new gas exploration and development wells in the East Mediterranean, offshore Egypt, within the next two years.

The Orion-1X well is a crucial component of this strategic initiative, targeting a Cretaceous four-way dip structure with immense potential. Preliminary assessments suggest that the prospect holds an estimated 10 trillion cubic feet (Tcf) of natural gas and 400 million barrels (MMbbl) of valuable liquids, solidifying its status as a highly prospective asset.

Energean is a partner in the Northeast Ha’py exploration license, holding a 30% interest. In an effort to optimize its portfolio and strengthen its position, Energean is currently in the final stages of negotiating a deal to farm out 11% of its working interest in the license. This strategic move underscores the collaborative nature of the industry and the shared commitment to realizing the full potential of Egypt’s offshore resources.

The Orion-1X well and the broader drilling campaign represent a monumental investment with a staggering budget of US$1.8 billion allocated to support these endeavors. Leading global energy giants, including Eni, Chevron, ExxonMobil, Shell, and bp, have taken the helm in driving this initiative forward.

With the prospect of significant gas and liquid reserves, this project could be a game-changer for Egypt’s energy landscape and the broader East Mediterranean region.