Al Arabiya Net _ UAE's Dragon Oil intends to pump new investments worth $500 million into Egypt during 2027, as part of its plan to enhance oil and gas activities and increase production from its current concession areas, alongside studying new investment opportunities in the Egyptian market.
The company aims to raise production in Egypt to 70 thousand barrels per day by 2028
The company's Chief Growth and Business Development Officer, Farid Al Hashmi, stated in an interview with “Al Arabiya Business” that Dragon Oil's production in Egypt currently amounts to approximately 65 thousand barrels per day from the Gulf of Suez fields, targeting an increase to 70 thousand barrels per day by the beginning of 2028, supported by expansion in development and exploration activities.
The company operates in partnership with the Petroleum Corporation with a 50% stake for each party
The company operates in Egypt through the Gulf of Suez Petroleum Company (GUPCO) in partnership with the Egyptian General Petroleum Corporation with a 50% stake for each party.
Dragon Oil had acquired the stake of the British company “BP” in the Gulf of Suez assets for approximately $500 million, before completing the transaction in early 2020.
The company looks forward to new opportunities in the Mediterranean and the Western Desert
Al Hashmi explained that the company is studying expansion opportunities in the Mediterranean and Western Desert regions alongside enhancing its current activities in the Gulf of Suez, within the framework of a strategy aimed at diversifying its asset portfolio and strengthening its presence in oil and gas production in Egypt.
He added that Dragon Oil is monitoring a number of investment opportunities and potential acquisitions that may allow it to enter new concession areas, pointing out that the company is still in the stage of studying and evaluating these opportunities before making any investment decisions.
The company is currently executing new survey works in the southern part of the Gulf of Suez
He revealed that the company is currently executing new survey works in the southern part of the Gulf of Suez after completing survey works in the northern region, with the aim of identifying new exploratory opportunities that support plans to increase production during the coming years.
He emphasized that these works come within the company's efforts to enhance reserves, raise the efficiency of operational processes, and capitalize on the petroleum potentials available in its areas of activity.
A plan for production growth in Egypt, Iraq, and Turkmenistan
At the level of its global operations, Al Hashmi said that Dragon Oil aims to achieve annual growth ranging between 15% and 20%, with a focus on the key markets in which it operates, forefronted by Egypt, Iraq, and Turkmenistan.
He added that the company's total production in the three countries currently amounts to approximately 160 thousand barrels per day, while it targets raising it to about 250 thousand barrels per day during the upcoming period through expansion in exploration and development activities and capturing new investment opportunities.
He pointed out that the Egyptian market represents a fundamental pillar in the company's growth strategy, in light of the opportunities it provides to increase production and expand petroleum activities.
Dragon Oil is one of the exploration and production companies wholly owned by Emirates National Oil Company (ENOC), and manages operations in a number of major oil and gas markets in the Middle East and Central Asia.
