CAIRO: The Gulf of Suez Petroleum Company (Gupco) will receive by the end of this year a marine drilling rig to drill up crude from the Red Sea. The drilling rig will cost as much as $50 million (LE 387 million) and will be constructed by Balayeem Petroleum, Petrobal. A senior official at Petrobal said Gupco aims to increase crude oil production by 10,000 barrels a day and boost its production of natural gas by using the new drilling rig. Gupco is expected to start production from its Saqqara Oil Field during the second half of 2007 to produce 1.4 million cubic meters (48 million cubic feet) of natural gas. The official noted that the new drilling rig would be delivered as part of a deal with Petrobal on the manufacturing of rigs to increase Gupco's production and reserves in its concession in the Red Sea. Gupco started production in Egypt in 1965 as a joint venture between the Egyptian General Petroleum Authority and British Petroleum Company.
