Egypt-UAE venture investing $516m to boost oil output

A joint Egyptian-Emirati venture plans to invest nearly $516 million during fiscal 2026-27 to raise crude production by roughly 15%, Gulf of Suez Petroleum Company (Gupco) said. The offshore-focused explorer and producer, which reported output peaking at about 65,000 barrels per day (bpd) at the end of 2025, aims to lift production to 75,000 bpd by the close of the 2026-27 fiscal year, the company announced via comments published on the Egyptian cabinet’s website. The fiscal year begins on July 1.

"Includes drilling exploratory and development wells to boost crude output from around 65,000 bpd to 75,000 bpd at the end of the term," Gupco chairman Abdul Wahab El-Maghawry said, according to the cabinet statement.

Context and recent activity

Gupco, established in 1965, is a joint venture between the Egyptian General Petroleum Corporation (EGPC) and Dubai-based Dragon Oil. Dragon Oil acquired British Petroleum’s stake in the company in 2020. The firm concentrates on offshore production in the Gulf of Suez, where it has been steadily increasing output in recent years.

• Peak production: about 65,000 bpd at the end of 2025.
• Target after investment: 75,000 bpd by end of fiscal 2026-27 — an increase of nearly 15%.
• Planned investment: nearly $516 million during 2026-27.
• Previous investment: roughly $226 million in January 2025 for five developmental wells in the North Safa and Al‑Wasl fields.
• Recent discovery: the East Crystal-1 exploration well, with initial testing showing more than 2,000 bpd.

The 2026-27 investment programme is set to fund both exploratory and development drilling aimed at converting recent discoveries and existing reserves into sustained production gains. Gupco has already undertaken substantial activity: in January 2025 it drilled five development wells in the North Safa and Al‑Wasl fields with an investment of roughly $226 million, and early last year announced a new discovery at the East Crystal‑1 exploration well with initial testing indicating more than 2,000 bpd.

Gupco’s revised output ambition of 75,000 bpd exceeds a previously announced target of 70,000 bpd, signalling a more aggressive growth push backed by the near $516 million capital plan. The investment will be implemented over the 12‑month fiscal period beginning July 1, and is focused on accelerating production through a mix of exploration to add new barrels and development drilling to lift flows from known fields.

Outlook

If Gupco reaches its stated goal, the company will add roughly 10,000 bpd to current output levels, a near‑term increase of about 15% from the end‑2025 baseline. Achieving that rise will depend on the success of the planned exploratory and development wells and the pace of field tie-ins in the Gulf of Suez. For the Egyptian market and Gupco’s shareholders — EGPC and Dragon Oil — the plan represents a sizeable capital commitment and a clear bet on near‑term production growth from offshore assets.