Egypt, Dragon Oil sign agreement to export additional crude oil

CAIRO - 22 February 2024: The Egyptian General Petroleum Corporation signed a commercial agreement with Dragon Oil Company, wholly owned by the Government of Dubai, to export the additional crude oil produced from the North Safa and Al Wasl fields, one of the components of the Gulf of Suez mixture, to the global market for the first time.

 

The Egyptian Minister of Petroleum, Tarek El-Molla, witnessed the signing of the agreement along with Saeed Mohammed Al Tayer, Chairman of the Board of Directors of Dragon Oil Company, who led a high-level delegation that included a number of senior officials from various departments of Dragon Oil, during the activities of the extended Egypt Energy Show “EGYPS 2024”, taking place from 19 to 21 February in Cairo.

 

The signing of the agreement comes after the success of Dragon Oil Company in starting production from the two fields, with an additional average production expected to reach 10 thousand barrels per day during the coming period, which will achieve many economic interests for both parties and enhance the value and presence of Egyptian crude in the global market, especially with Dragon Oil and the Egyptian Ministry of Petroleum’s keenness to raise production and cooperation rates in order to face current global challenges, in line with comprehensive and sustainable implementation strategies and ambitious plans adopted by Dragon Oil to support supply chains, energy transition, reduce emissions, and decarbonization from the oil and gas industry.

 

Saeed Mohammed Al Tayer expressed his happiness at being present at the Egypt Energy Exhibition and Conference “EGYPS 2024” and inaugurating the Dragon Oil pavilion, as part of the company’s efforts to deepen economic cooperation relations with Egypt under the guidance and vision of Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to increase and deepen bilateral and economic relations with the Arab Republic of Egypt.

 

Al Tayer stressed that the participation comes within the framework of close cooperation and distinguished fraternal relations between Egypt and the United Arab Emirates, and reflects strong economic and investment relations between the two countries, which have reached a high level of coordination and consultation with the support of the wise leadership of the two countries, including joint projects in the energy sector.

 

This year's EGYPS 2024 Energy Show, which is held under the slogan "Energy Stimulation... Securing Supplies, Energy Transition, and Reducing Emissions," witnessing the participation of more than 450 exhibiting companies and 12 country pavilions, including the UAE pavilion. It will also witness 80 discussion sessions with more than 300 speakers, including the CEO of Dragon Oil, and the company's managers who will participate in various discussion sessions that address current global trends in the oil and gas industry, most notably prices, supplies, energy transition, emissions reduction, decarbonization of the oil and gas industry, and hydrogen production.

 

Dragon Oil Egypt, owned by the Emirates National Oil Company, is considered one of the first joint companies for petroleum production in Egypt. Its founding and beginning of work in Egypt dates back to the sixties of the last century, with the company focusing on the field of research, exploration and petroleum production in the Gulf of Suez, within implementation strategies, comprehensive and sustainable, with ambitious plans, training programs, and programs for continuous development to reach the desired goals according to a vision capable of meeting the company’s aspirations for its activities in Egypt.

 

On another note, Dragon Oil, a fully-owned exploration, development, and production company by the National Petroleum Company "ENOC," plans to invest $500 million in Egypt this year to drill new wells and maintain a production rate of 61,000 barrels of oil per day, according to Ali Al Jarwan, the company's CEO. 

 

He added that his company increased production from the North Safa field in the Gulf of Suez region to 6,000 barrels of oil per day this year.

 

The company aims to increase production by 33 percent to reach 8,000 barrels next year. Dragon Oil acquired 100 percent of BP Egypt's rights in a deal valued at $850 million in 2020, becoming a partner with the Egyptian General Petroleum Corporation in all oil production and exploration concessions in the Gulf of Suez, according to Asharq Bloomberg.