In a landmark development, the Egyptian General Petroleum Corporation has inked a commercial agreement with Dragon Oil Company, a government-owned entity based in Dubai, to export additional crude oil from the North Safa and Al Wasl fields to the global market. The agreement was signed during the Egypt Energy Show (EGYPES 2024) in Cairo. It underscores a strategic collaboration aimed at leveraging the success of Dragon Oil’s production initiatives and enhancing the economic interests of both parties.
The signing ceremony was attended by Tarek El-Molla, Egypt’s minister of petroleum, and Saeed Mohammed Al Tayer, chairman of the board of directors of Dragon Oil Company.
Economic interests
Dragon Oil’s successful production efforts in the North Safa and Al Wasl fields could yield an additional average production of 10,000 barrels per day. Therefore, they will contribute significant economic benefits for both entities. This partnership aligns with the Egyptian Ministry of Petroleum’s commitment to raising production and cooperation rates to address global challenges, emphasizing sustainable implementation strategies and ambitious plans.
Investment and production plans
Dragon Oil plans to invest $500 million in Egypt this year to drill new wells. In addition, it aims to maintain a production rate of 61,000 barrels of oil per day. Moreover, Dragon Oil aims for a 33 percent increase in production next year.
Notably, Dragon Oil acquired BP Egypt’s rights in 2020, valued at $850 million. This further solidified its partnership with the Egyptian General Petroleum Corporation. The strategic collaboration positions Dubai’s oil company as a key player in Egypt’s oil and gas sector, with promising prospects for future growth and development.
Read: BP plans to inject $1.5 billion in new investments in Egypt
EGYPES 2024
Dragon Oil and the Egyptian General Petroleum Corporation signed the agreement against the backdrop of EGYPES 2024. The show is a premier event with over 450 exhibiting companies and 12 country pavilions, including the UAE pavilion. The show facilitates discussions on global trends in the oil and gas industry. Moreover, it emphasizes energy stimulation, securing supplies, and reducing emissions.
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