Dragon Oil Strengthens Its Presence In Egypt With New Agreement For Gulf Of Suez Investments

Dragon Oil, a subsidiary of the Emirates National Oil Company (ENOC) owned by the Dubai government, has entered into a new agreement with the Egyptian General Petroleum Corporation (EGPC). This partnership aims to boost exploration and production in the Gulf of Suez. The deal involves an investment of approximately USD 30 million, which includes plans to drill at least two new wells.

The collaboration is part of a strategic initiative between Egypt's Ministry of Petroleum and Dragon Oil. It focuses on expanding operations, enhancing production, and increasing exploration activities in the Gulf of Suez. Eng. Abdulkarim Ahmed Al Mazmi, Acting CEO of Dragon Oil, highlighted that this agreement underscores their commitment to strengthening their presence in Egypt and supporting EGPC's efforts in developing energy resources.

The agreement was formalised at EGPC's headquarters in Cairo. Eng. Salah Abdelkarim, CEO of EGPC, and Eng. Tayeb Huwair, Chief Operating Officer at Dragon Oil, signed the contract. The signing ceremony was attended by Egypt’s Minister of Petroleum Eng. Karim Badawi and several senior officials from both organisations.

Eng. Abdulkarim Ahmed Al Mazmi stated: "The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt and supporting EGPC’s efforts to develop energy resources in the Gulf of Suez region, in line with the company’s vision for growth and sustainability."

This initiative aligns with Dragon Oil's broader strategy to expand within regional markets. It aims to solidify its position as a key player in the oil and gas industry. The move is consistent with directives from the UAE government, particularly Dubai's leadership, to invest in global energy projects with a focus on Egypt.

The agreement includes drilling two new wells for oil and natural gas in East El-Hamd area. This reflects Dragon Oil's ambition to explore additional resources that will help meet rising energy demands.

Eng. Al Mazmi further emphasised that this step is part of Dragon Oil’s broader strategy to expand in regional markets and strengthen its position as a leading player in the oil and gas sector, aligning with UAE government directions.

This collaboration marks a significant step towards enhancing energy resource development in the Gulf of Suez region while supporting Egypt's energy sector growth objectives.

With inputs from WAM