Dubai’s Dragon Roars In To Egypt With BP Purchase

Dubai state firm sees 70% hike in global output with $500mn purchase of BP’s 71,000 b/d Gulf of Suez subsidiary. A $13bn war chest makes further expansion likely.

Dragon Oil, a wholly-owned subsidiary of Dubai’s Emirates National Oil Company’s (Enoc), this week agreed to pay an estimated $500mn for BP’s Gupco subsidiary, which manages the firm’s 12 concessions containing 45 fields in Egypt’s mature Gulf of Suez oil province.

Output was 71,000 b/d for 2017-18, 11% of Egypt overall output, down from 72,500 b/d for 2016-17 and 78,000 b/d for 2011-12. Net output to BP is around 40,000 b/d.

The Gulf of Suez is where Egypt’s oil production began in 1910; BP has produced there since the mid-1960s. The region long accounted for almost all Egypt output. But, having peaked at 800,000 b/d in the mid-1980s, the Gulf of Suez slumped to 240,000 b/d for 2018 versus 360,000 b/d for the Western Desert ( MEES, 8 March ). (CONTINUED - 967 WORDS)

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table Dragon Oil Upstream Assets