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BP has agreed to sell its interests in the Gulf of Suez oil concessions in Egypt to Dragon Oil, the Dubai-based oil and gas company

28524134082 0419ba1e80 zIn the past two years, BP has started four new gas projects in Egypt. (Image source: BP Images/Flickr)

Under the terms of the agreement, Dragon Oil will purchase producing and exploration concessions, including BP’s interest in the Gulf of Suez Petroleum Company (GUPCO). Dragon Oil is a wholly-owned subsidiary of the Emirates National Oil Company (ENOC).

The deal, which is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval, is expected to complete during the second half of 2019 and is part of BP’s plan to divest more than US$10bn of assets globally over the next two years.

Bob Dudley, BP chief executive, said, “Egypt is a core growth and investment region for BP. In the past four years, we have invested around US$12bn in Egypt – more than anywhere else in our portfolio – and we plan another US$3bn investment over the next two years.”

“We look forward to continuing to broaden our business here, working closely with the government of Egypt as we develop the country’s abundant resources,” he added.

Hesham Mekawi, regional president, BP North Africa, commented, “We continue to bring on new developments and deliver important gas supplies for the country. We remain on track to triple our 2016 net production from Egypt by 2020.”

“As we grow our business here, we also keep our portfolio under review. We believe Dragon Oil is well-placed to operate these mature assets, delivering further value for Egypt,” he concluded.