Petrosilah Petroleum Company plans to invest $55 million into Egyptian oil exploration during fiscal year (FY) 2018/19, Managing Director and Chairman Taher Abdel Rehim has said, according to Egypt Today.

Abdel Rehim said that production from the Abboud well had allowed the company to increase its overall output to 7000 barrels a day (b/d) of crude in April 2018.

The company plans to boost its output further to 7500 b/d over the upcoming two months, Al Shorouk Newspaper reported.

Petrosilah plans to drill six development wells and two exploratory wells in several areas in Fayoum during 2018/2019, with investments worth $20 million, Abdel Rehim highlighted.

The company succeeded in decreasing operating costs from $13 per barrel to around $5 per barrel. This was done by halting the import of chemicals used to liquefy crude oil which costed around $4.5 million per year.

Petrosilah is a joint venture between US’ Merlon International and the Egyptian General Petroleum Corporation (EGPC).

Yorktown Partners announced that it will sell Merlon International, an oil and gas company focused on exploration and production in Egypt’s Western Desert region, banking sources told Reuters.

The two unnamed sources said that the company was hoping to raise up to $400 million through the sale.