Merlon, an American company working in research and exploration in Egypt, allocated around $100m to implement production and development operations in its concession area in Fayoum in the next fiscal year 2016-2017 (FY), compared to $85m in the last FY, Al Mal News reported. Chairman of PetroSilah, Taher Abdel Rahim, attributed the increase in the investment budget of Merlon by $15m to the rise in the volume of costs and expenses.
Abdel Rahim further stated that the company’s production rates are roughly at 10,500b/d, and are expected to increase to 11,000b/d within days.
The chairman added that the decline in oil prices globally to be at $50 per barrel has created a state of disruption especially for the global oil companies working in other countries, adding, however, that the company’s rates were not affected by this drop.
PetroSilah Petroleum Company is responsible for the execution of the research and exploration operations. Its total production capacity exceeded 8m barrels of crude oil since its establishment.