Subsidiary of the Emirates National Oil Company will purchase producing and exploration concessions, including BP's interest in the Gulf of Suez Petroleum Company
Energy giant BP has agreed to sell its interests in Gulf of Suez oil concessions in Egypt to Dubai-based Dragon Oil.
Under the terms of the agreement, Dragon Oil, a wholly-owned subsidiary of the Emirates National Oil Company (ENOC), will purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO).
The deal, which is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval, is expected to complete during the second half of 2019 and is part of BP’s plan to divest more than $10 billion of assets globally over the next two years.
Bob Dudley, BP chief executive, said: “Egypt is a core growth and investment region for BP. In the past four years we have invested around $12 billion in Egypt – more than anywhere else in our portfolio – and we plan another $3 billion investment over the next two years. We look forward to continuing to broaden our business here, working closely with the government of Egypt as we develop the country’s abundant resources.”
In the past two years, four new gas projects in Egypt have begun production for BP. In February, BP announced the start of production from the second stage of the West Nile Delta development – which includes five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks – producing from the Giza and Fayoum fields.
The first stage, producing from the Taurus and Libra fields, started up in 2017. The final stage, developing the Raven field, is expected to begin production late this year.
When fully onstream in 2019, combined West Nile Delta production is expected to reach up to 1.4 billion cubic feet per day (bcf/d), equivalent to about 20 percent of Egypt’s current gas production. All the gas produced will be fed into the national gas grid.
BP currently produces, with its partners, close to 60 percent of Egypt’s gas production through the joint ventures the Pharaonic Petroleum Company (PhPC) and Petrobel (IEOC JV) in the East Nile Delta as well as through BP’s operated West Nile Delta fields.