Minister of Petroleum and Mineral Resources Tarek El Molla emphasized the importance of increasing exploration and discovery activities during general assemblies of Gulf of Suez Petroleum Company (GUPCO), Agiba, and Pharaonic Petroleum companies to adopt the amended budget for the fiscal year (FY) 2021/22 and approve the proposed budget for 2022/23.

He pointed out that intensifying these activities and drilling wells will help ramp up production rates of crude oil and natural gas to compensate for the natural decline in wells. The current rise in international oil prices encourages international companies to pump more investments and the intensify drilling exploratory and development wells within the framework of targeted production programs.

The minister also highlighted the importance of continuing to apply modern technologies, following the highest standards of safety and environmental protection in a cost-effective manner. He emphasized that digital transformation is one of the petroleum sector’s priorities to support decision-making.

Agiba Petroleum Company Chairman Ahmed Mustafa stated that the planned investments in the 2022/23 budget amount to around $553.5 million. Additionally, a production of 40,000 barrels of oil per day (bbl/d) and 18.5 million cubic feet of gas per day (mcf/d) is planned. He pointed out that the year 2021/22 witnessed the achievement of four discoveries which  added 14.5 million barrels of oil equivalent (mmboe) to the company’s reserves, and three exploratory wells were placed on production with an average of 4,600 bbl/d and 5.3 mcf/d.

Meanwhile, Pharaonic Petroleum Chairman Hossam Zaki reviewed the terms of the proposed plan for the year 2021/22, which is planned to reach 435 mcf/d of natural gas and 9,400 bbl/d of condensate. He pointed out that the company plans to drill the “Osiris” exploratory well to assess gas reserves in the Ras El Bar concession area during the next fiscal year, which are estimated at 368 billion cubic feet (bcf) and 21 mmbbl of condensate.