U.S. oil firm Apache reports new gas discovery in Egypt’s western desert

Africa

U.S. energy company Apache has announced a new onshore natural gas discovery in Egypt’s Western Desert, strengthening a recent wave of exploration successes in the region.

The announcement, made on March 24 by Egypt’s Ministry of Petroleum and Mineral Resources, follows the drilling of the SKAL-1X exploration well in the South Kalabsha block. Early tests indicate the well could produce about 26 million cubic feet of natural gas per day, alongside 2,700 barrels of condensates.

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The discovery was made in partnership with the state-owned Egyptian General Petroleum Corporation (EGPC), which collaborates with Apache on exploration and production activities. The SKAL-1X well is situated near Apache’s existing operations, a factor officials say will help accelerate development, reduce capital expenditure, and offset natural declines in mature fields. No specific production timeline has been announced.

“The initial results are promising and contribute to Egypt’s ongoing efforts to bolster domestic energy production,” the ministry said in a statement.

The find comes amid a broader trend of successful drilling in the Western Desert. In January 2026, the petroleum ministry reported that four exploration wells, including Sultan S-1X RC, Alex NW-1X, and EAS Z-3, had yielded a combined output of approximately 4,500 barrels of oil per day and 2.6 million cubic feet of gas. These efforts involved joint ventures such as Khalda Petroleum—a partnership between EGPC and Apache—as well as other operators including Tharwa Petroleum and Borg El Arab Petroleum.

Further discoveries in February 2026 added roughly 34 million cubic feet of gas and more than 5,200 barrels of oil and condensates per day, according to ministry data cited by Xinhua.

Egypt’s Western Desert has long been a hub for exploration, attracting foreign investment and partnerships with state-owned companies. Authorities see new discoveries as essential to meeting rising domestic energy demand and supporting the country’s ambitions as a regional energy exporter.

Analysts note that proximity to existing infrastructure allows operators to bring new wells into production faster, helping to stabilise supply and reduce costs. Apache’s SKAL-1X discovery is expected to complement these efforts, although officials caution that further appraisal and development work is required before full-scale production begins.

The announcement reflects a wider strategy by Egypt to expand gas production, particularly as regional and global energy markets face uncertainty. Recent discoveries, alongside ongoing development of mature fields, are intended to strengthen energy security while providing a platform for export growth in liquefied natural gas (LNG) and other energy products.

With multiple operators active in the Western Desert, continued discoveries are likely to reinforce Egypt’s status as a key energy player in North Africa. Apache’s latest find underscores both the potential of the region and the importance of collaboration between international companies and state entities in unlocking new energy resources.

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