Dragon Oil, owned by Emirates National Oil Company (ENOC), has completed the acquisition of BP’s concession in the Gulf of Suez, Egypt, with the approval of the Ministry of Petroleum and Mineral Resources.
The company announced on Monday its plans to invest $1bn over five years to boost and extend their production.
Under the terms and conditions of the purchase, Dragon Oil became the partner of the Egyptian General Petroleum Corporation (EGPC) instead of BP in all oil production and discovery concessions in the Gulf of Suez, where the Gulf of Suez Petroleum Company (GUPCO) operates on behalf of the EGPC and the contractor.
The completion of the purchase will enhance the strategic production of the company and its investments in a number of regions and countries of the world such as Turkmenistan, Iraq, and Afghanistan, bringing the daily production of the company estimated at 150,000 barrels per day, as this production is part of the strategy of Dragon Oil to reach the production of 300,000 barrels equivalent per day by 2026.
GUPCO Egypt currently produces 60,000 bpd through 11 concession areas while its sustainable target is of 75,000 bpd by 2021.
Dragon Oil plans to boost production to levels above 75,000 barrels per day (bpd) by increasing drilling activity.
This important deal for Dragon Oil follows the recent successes of investment in the Egyptian petroleum sector, which had a positive impact in attracting international companies to invest in the Egyptian petroleum sector and was the main motive for entering into this deal.
Egypt is considered attractive for investment, and Egypt and the UAE have friendly relations.