By Sam Bridge
ENOC subsidiary acquires BP's stake in The Gulf of Suez Oil Company
Dragon Oil Ltd, the exploration and production platform of Emirates National Oil Company (ENOC), said on Monday it has acquired BP’s stake in The Gulf of Suez Oil Company (GUPCO Egypt).
The deal has been concluded after obtaining the approval from the Egyptian Ministry of Petroleum and Mineral Resources, the company said in a statement.
It added that under the terms and conditions of the acquisition, Dragon Oil has become the contractor with Egyptian General Petroleum Corporation (EGPC) instead of BP in all oil production and discovery concessions in Gulf of Suez area where GUPCO is the contractor.
Dragon Oil said the completion of the acquisition will enhance its strategic production and investments in a number of regions and countries of the world such as Turkmenistan, Iraq and Afghanistan, bringing its daily production estimated at 150,000 barrels per day.
GUPCO Egypt currently produces 60,000 barrels per day from 11 concessions and sustainable production target of 75,000 barrels by 2021.
Dragon Oil said it plans to boost the production to levels above 75,000 barrels per day by increasing drilling and investment activities during the next 10 years.
"This important deal for Dragon Oil follows the recent successes of investment in the Egyptian oil sector," it added.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.