Egypt has confirmed the discovery of at least eight million barrels of oil in the East Crystal-1 well in the Gulf of Suez, the petroleum ministry announced on Wednesday. The exploratory well was drilled by UAE-based Dragon Oil, through the Gulf of Suez Petroleum Company (GUPCO). The drilling of the East Crystal-1 well was carried out by Dragon Oil, a wholly owned subsidiary of the Emirates National Oil Company (ENOC). The drilling was conducted through the joint venture company, GUPCO. The ministry said the discovery falls within the Ministry of Petroleum and Mineral Resources' strategy to boost local oil and gas production, aiming to reduce import costs. Initial testing of the 16-foot-thick Hawara layer showed a daily production of over 2,000 barrels of crude oil. The underlying honey layer, which is more than 100 feet thick, is yet to be tested, the ministry said. The ministry also confirmed that the expected stock before drilling, at about eight million barrels, was confirmed through the drilling of the new well, located in the integrated concession area of the Gulf of Suez, with expectations that this quantity could be exceeded. GUPCO plans to drill two more wells to develop the discovery, which is expected to add more than 5,000 barrels of crude oil per day to production. The East Crystal-1 well is the second successful exploration well drilled using the latest seismic survey technology, known as Ocean Bottom Node (OBN) seismic exploration. The first was the S. El-Wasl-1 well. Dragon Oil completed its acquisition of BP's stake in GUPCO's concession areas in 2020.
