Dragon Oil, a Dubai-based company owned by the Emirates National Oil Company, has announced a major new oil discovery in Egypt’s Gulf of Suez. The find happened in the North-East Ramadan Concession, with the well reaching deep into promising rock layers, and it could boost production by thousands of barrels per day starting in 2026.
Details of the New Discovery
The well, named Crystal NER-1X, was drilled to a depth of 13,425 feet from an offshore platform. It hit a 224-foot column of oil-bearing rock in the Honey Sand formation, showing strong signs of high-quality crude.
Early tests suggest the well could produce around 3,000 barrels of oil each day once connected to existing pipelines. This success builds on data from a 2020 seismic survey that mapped out hidden oil pockets in the area.
Dragon Oil started this exploration push in early 2020, and this is the latest win in a string of finds. The company has already drilled two other wells in the same concession this year, both exceeding production goals.
Strong Partnership with Egypt
Dragon Oil worked closely with Egypt’s General Petroleum Corporation and the Gulf of Suez Petroleum Company on this project. This teamwork has been key to navigating the complex offshore environment and using advanced drilling tech.
The company’s CEO, Abdulkarim Al Mazmi, praised the joint efforts between teams in Dubai and Cairo. He noted that the discovery supports Egypt’s goal to ramp up local oil output and cut down on imports.
This find comes after Dragon Oil signed a new deal in September 2025 to invest $30 million in drilling at least two more wells in the Gulf of Suez. That agreement aimed to explore the East El-Hamd area, showing the company’s growing role in Egypt’s energy scene.
Impact on Production and Economy
The new well could add significant output to Dragon Oil’s operations in Egypt, where the company already produces from several fields. Estimates from similar discoveries suggest reserves might reach tens of millions of barrels, helping stabilize Egypt’s energy supply.
Egypt’s oil sector has seen a wave of activity in 2025, with total production hitting about 600,000 barrels per day nationwide. This discovery aligns with the government’s push to attract foreign investment, which has brought in over $1 billion in deals this year alone.
Here are some key facts about recent oil finds in the Gulf of Suez:
- January 2025: Dragon Oil discovered 8 million barrels in the East Crystal-1 well.
- February 2022: The company’s first major find in the area, estimated at 100 million barrels.
- September 2025: New investment pact for additional drilling, targeting 5,000 more barrels per day.
Looking Ahead for Dragon Oil
Dragon Oil plans to finish testing and sampling in the coming weeks, then link the well to production lines by early 2026. A third well in the concession is set for drilling in the first quarter of next year.
This progress fits into broader trends, like Egypt’s recent natural gas discoveries in the Western Desert and Mediterranean, valued at billions. Such finds help the country meet growing energy needs and export more to neighbors.
The company also operates in Iraq and Turkmenistan, with investments topping $1 billion since 2012. In Egypt, Dragon Oil took over assets from BP in 2019, expanding its stake in the Gulf of Suez.
| Year | Discovery | Estimated Reserves (Million Barrels) | Daily Production Potential (Barrels) |
|---|---|---|---|
| 2022 | First Gulf of Suez Find | 100 | 5,000+ |
| 2025 (Jan) | East Crystal-1 | 8 | 2,000+ |
| 2025 (Nov) | Crystal NER-1X | 50 (projected) | 3,000 |
| Future (2026) | Planned Wells | TBD | 5,000 additional |
Broader Energy Trends in the Region
Egypt’s Ministry of Petroleum and Mineral Resources backs these efforts to increase local production. The Gulf of Suez remains a hot spot for oil, with over 20 years of untapped potential thanks to new tech like 3D seismic imaging.
This discovery could ease global oil market pressures, especially with ongoing demand growth in Asia and Europe. It also highlights how Middle Eastern firms like Dragon Oil are key players in African energy projects.
As Egypt eyes more exploration in 2026, including a Mediterranean drilling campaign targeting 12 trillion cubic feet of gas, the sector looks set for growth. Dragon Oil’s success might inspire similar investments elsewhere.
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