Egypt's Wanda gas well begins production in Western Desert as country battles supply decline
Khalda Petroleum starts producing 40 million cubic feet per day from newly discovered Wanda well following $2.3 million pipeline investment, as Egypt struggles with declining domestic output and rising import costs.
Egypt's Wanda gas well begins production at 40 million cubic feet per day
Egypt's Ministry of Petroleum and Mineral Resources has announced that the newly discovered Wanda deep natural gas exploration well in the Western Desert has commenced commercial production at an initial rate of 40 million cubic feet per day.
The well, drilled to a depth of 15,000 feet by Khalda Petroleum Company, a joint venture between the Egyptian General Petroleum Corporation and Apache Corporation, showed positive natural gas-bearing structures during electrical logging. Production testing subsequently confirmed commercial viability at the 40 million cubic feet per day rate.
To accelerate development, Khalda Petroleum constructed a 10-kilometre production pipeline at an investment of $2.3 million, linking the well directly to existing infrastructure. The rapid development reflects Egypt's urgent need to boost domestic hydrocarbon production amid declining output and surging import costs.
Addressing Production Decline
The Wanda discovery comes as Egypt faces significant challenges in its natural gas sector. The country's production has declined sharply from approximately 59 billion cubic meters annually in 2023 to about 42 billion cubic meters in 2025, losing nearly 17 billion cubic meters of annual production capacity.
This decline has forced Egypt to rely increasingly on imports. During the first quarter of 2026, natural gas imports rose 36% year-on-year to approximately 6 billion cubic meters, up from 4.4 billion cubic meters in the same period of 2025. In 2025 alone, Egypt imported a record 8.92 million tons of LNG, with 91% coming from the United States.
The financial burden is substantial. Egypt has allocated approximately $10.7 billion for natural gas and LNG imports for fiscal year 2026/27, representing a 26% increase from the estimated $8.5 billion in the current fiscal year.
Western Desert Resurgence
The Wanda well contributes to a broader resurgence in Western Desert production, which accounts for approximately 18% of Egypt's total gas output. The region's production increased to 888 million cubic feet per day in April 2026, the highest monthly figure since May 2023, after reaching a three-year high of 868 million cubic feet per day in the first quarter of 2026.
Apache Corporation's total crude oil and gas production in Egypt reached approximately 211,000 barrels of oil equivalent per day in 2024. The company plans to drill 34 exploration and development wells in 2026 with investments estimated at around $150 million.
Strategic Investment Programme
The discovery aligns with Egypt's broader strategy to revitalise domestic production. The country plans to drill 101 oil and gas wells in 2026 as part of a $5.7 billion investment programme approved in 2025 to drill 480 wells over five years.
In August 2024, Egypt introduced new incentives to stimulate exploration and development, increase output, and reduce the gap between domestic supply and demand. These policy measures have encouraged companies to accelerate their exploration activities and development timelines.
The ministry stated that the discovery reinforces ongoing exploration efforts in the Western Desert and strengthens Egypt's domestic natural gas supply, supporting the country's strategy to reduce dependence on costly imports while meeting growing energy demand.
