Shell and its partners have discovered crude oil in the Velox-1X exploration well in the North Cleopatra block offshore Egypt, at a total depth of 6,500 metres, marking a departure from the major gas discoveries that have defined the region until now, including Zohr, Leviathan and Tamar.

The well, located in the Herodotus basin, points to deep Mesozoic reservoirs holding thermogenic oil rather than the biogenic gas found in neighbouring fields, a distinct petroleum system reaching far deeper than existing regional gas discoveries. Because crude oil is priced directly against Brent rather than sold to Egypt’s state gas buyer at capped domestic rates, the find gives Egypt a potentially more valuable and more flexible resource, exportable via floating production and storage vessels without needing new pipelines or liquefaction capacity. Any oil produced could also feed the recently expanded MIDOR refinery in Alexandria, cutting Egypt’s fuel import bill.

The North Cleopatra block is held by Shell as operator with a 36% stake, QatarEnergy and Chevron with 27% each, and Egyptian state company Tharwa Petroleum with 10%. The Velox-1X well was completed ten days ahead of schedule using a seventh-generation drillship.

Turning the find into confirmed reserves will take years: the consortium plans production tests followed by appraisal wells in 2027, ahead of a field development plan and final investment decision expected between 2028 and 2029. Engineers will need to contend with high-pressure, high-temperature conditions at depth and salt layers that complicate seismic imaging of the reservoir below.

Source: energynews.pro