Dragon Oil, a wholly owned subsidiary of the Government of Dubai, has signed a commercial marketing agreement with the Egyptian General Petroleum Corporation (EGPC) to export their shares of the additional crude oil produced from the North Safa and Al-Wasl fields in the Gulf of Suez. The agreement was signed during the Egypt Petroleum Show (EGYPS) 2024, which is the largest oil and gas event in North Africa and the Mediterranean region.
The agreement marks a milestone for both Dragon Oil and EGPC, as it is the first time that the two parties will jointly market their crude oil in the global market. The agreement covers the quantities of production from the North Safa and Al-Wasl fields, which are part of the Gulf of Suez Oil Company (GUPCO) concessions that Dragon Oil acquired from BP in 2019. The two fields are expected to produce an additional average of 10,000 barrels per day in the coming period, which will enhance the value and presence of the Egyptian crude oil in the international market.
Saeed Mohammed Al Tayer, Chairman of the Board of Directors of Dragon Oil, said, “The commercial marketing agreement signed at EGYPS 2024 is the result of the fruitful partnership between Dragon Oil and the Egyptian General Petroleum Corporation, and it is also an introduction to the upcoming investment projects that benefit both countries.”
Alaa Al-Batal, CEO of EGPC, said, “The agreement reflects the strong cooperation and mutual trust between EGPC and Dragon Oil, and it will contribute to increasing the revenues of both parties and achieving their strategic objectives.”
A strategic move for Dragon Oil in Egypt
The agreement is also a strategic move for Dragon Oil, which is keen to strengthen its presence and expand its investments in the Egyptian market. The company has been actively involved in the exploration and development of the oil fields in the Gulf of Suez, as well as supporting the growth and innovation of the Egyptian oil and gas sector.
Ali Rashid Al-Jarwan, CEO of Dragon Oil, said, “Dragon Oil is working to continue its growth and expansion in the Egyptian market in 2024 through intensifying the exploration, development of fields and reparation of wells to increase the production from the oil fields in Gulf of Suez. The company aims to reach production rates of 65,000-70,000 barrels per day, compared to an average of 60,000 per day in 2021.”
Dragon Oil has also established several initiatives and partnerships to foster the entrepreneurial ecosystem and the human capital development in Egypt, such as:
- The Dragon Oil Innovation Hub, which is a platform that supports the startups and innovators in the oil and gas sector, and provides them with mentorship, funding, and access to the company’s resources and expertise.
- The Dragon Oil Scholarship Program, which is a program that offers scholarships and internships for the Egyptian students and graduates who are interested in pursuing careers in the oil and gas industry, and provides them with training and exposure to the latest technologies and best practices.
- The Dragon Oil CSR Program, which is a program that supports the social and environmental causes in Egypt, and focuses on the areas of education, health, environment, and community development.
A positive outlook for the Egyptian oil and gas industry
The agreement is also a positive sign for the Egyptian oil and gas industry, which has been witnessing a remarkable recovery and growth in recent years, thanks to the reforms and incentives implemented by the Egyptian government and the Ministry of Petroleum and Mineral Resources. The industry has attracted significant investments and partnerships from local and international companies, and has achieved several achievements and discoveries, such as:
- The Zohr gas field, which is the largest gas field in the Mediterranean Sea, and has a production capacity of 3.2 billion cubic feet per day.
- The Nooros gas field, which is the second largest gas field in the Mediterranean Sea, and has a production capacity of 1.2 billion cubic feet per day.
- The West Nile Delta project, which is a mega project that consists of five gas fields, and has a production capacity of 1.4 billion cubic feet per day.
- The Atoll gas field, which is a deepwater gas field in the North Damietta offshore concession, and has a production capacity of 350 million cubic feet per day.
The Egyptian oil and gas industry has also been hosting and participating in various events and exhibitions, such as the EGYPS 2024, which is a platform that showcases the latest developments and opportunities in the industry, and facilitates the networking and collaboration among the stakeholders and the experts.
