BP submitted a request for the Ministry of Petroleum to receive its approval to sell the company’s stake in the Gulf of Suez Petroleum Company (GUPCO) to Dragon Oil Company, petroleum sources told Al Borsa Newspaper.
The Ministry of Petroleum will issue the approvals after Dragon Oil confirms its commitment to the new terms of agreement with BP in GUPCO’s concessions, the source noted.
The measures that are taken in this type of transaction are based on the security of the acquiring company’s activities and its ability to commit to payments and development plans, the source pointed out.
BP was close to selling GUPCO’s stake to Dragon Oil, which is a subsidiary of Dubai’s Emirates National Oil Company (ENOC), for over $600 million, Reuters previously reported.