Egyptian oil firm GUPCO invests $516mn in exploration and infrastructure upgrades

Egyptian Gulf of Suez Petroleum Company (GUPCO) plans to invest $516.5mn during FY 2026/27 in exploration, development activities and operating expenditure, alongside key infrastructure upgrades, Economy Plus reported on February 24, quoting the company’s chairman, Abdel Wahab El-Moghori. 

The company’s investment programme includes replacing the oil pipeline between Ras Bakr and Ras Shukeir and undertaking a comprehensive upgrade of the Morgan-36 offshore platform. The company aims to increase average output from 65,000 barrels per day (bpd) to 75,000 bpd through drilling new exploration and development wells and implementing well workover programmes to maximise recovery from existing fields.

GUPCO is an operating company formed by the Egyptian General Petroleum Corporation (EGPC) and UAE Dragon Oil. It was originally a joint venture between Egypt and BP (LSE:BP), but the UK supermajor sold its entire stake to Dragon Oil in 2020.

Earlier, the Minister of Petroleum and Mineral Resources, Karim Badawi, held talks with representatives of international technology and oilfield services companies operating in Egypt to discuss an integrated mechanism for advancing drilling technologies and field development. The initiative forms part of a five-year plan to boost domestic crude oil and natural gas production.

Badawi said the ministry has made significant progress in preparing new contractual and technical models designed to accommodate advanced technologies such as horizontal drilling and hydraulic fracturing. The updated frameworks are intended to encourage foreign partners to expand the use of modern production techniques. 

Days ago, the EGPC announced plans to drill 66 wells, including eight exploratory wells, with total investments exceeding EGP 8bn during FY 2026/27, as part of efforts to strengthen reserves and raise output.