Qarun Petroleum Company plans to allocate $190m investments in its budget of fiscal year 2017/2018 to be used in drilling 14 development and exploratory wells in its concessions in order to increase production and compensate the natural declining ratio, reported Al Borsa.

Qarun Petroleum’s CEO, Mohsen El Nouby, stated that the company’s average production reached 37,000b/d of oil within the first half of fiscal year 2016/2017. Thus, the company’s production exceeded the planned production by 11%.

El Nouby added that Qarun Petroleum drilled an exploratory well and it is currently assessing it. The company expects the well to produce crude oil, which will change how the concession is perceived. This will further encourage the foreign partner to drill extra wells.

El Nouby concluded that Qarun Petroleum is putting expenses rationalization as a priority in its fiscal year plans.

According to the company’s website, Qarun Petroleum Company (QPC) was established on August, 13th 1995, as an operating company for EGPC and the group consisting of Phoenix Resources Company of Qarun, Apache Oil Egypt Inc, and GNR Seagull at Qarun area of the Western Desert covered by the concession agreement.