Dragon Oil is planning to increase its investments in Egypt through acquiring some operating assets in the Western Desert in the next five years, according to Hapi Journal report citing Tayeb Huwair, COO (Non-Operating Assets) at Dragon Oil.
Through this acquisition, Huwair pointed out that the company’s investments in Egypt will increase by $650 million, up from $850 million, to reach about $1.5 billion.
Huwair mentioned that the company’s total production of crude oil is estimated at 150,000 barrels per day (bbl/d) from its concessions in Egypt, Iraq, and Turkmenistan. However, the company plans to increase its production to around 300,000 bbl/d by 2024.
He also noted that Dragon Oil’s current production rate in Egypt is approximately 60,000 bbl/d, and the company intends to increase that production level in the next three years to reach 70,000 bbl/d.
For the West Mediterranean deepwater bid rounds, launched by the Ministry of Petroleum and Mineral Resources, Huwair remarked that Dragon Oil is studying the possibility to participate.
Furthermore, Dragon Oil affirmed that they will continue working with the Gulf of Suez Petroleum Company’s (GUPCO) operation team.
In October 2019, the ministry announced that Dragon Oil signed a concession agreement with BP to operate in the Gulf of Suez. Accordingly, Dragon Oil became the Egyptian General Petroleum Corporation’s (EGPC) partner in all exploration and production (E&P) operations in the Gulf of Suez, where GUPCO operates on behalf of Dragon Oil.