Dragon Oil to invest USD 650 mn in Egypt over five years
INVESTMENT WATCH- Dragon Oil to invest USD 650 mn in Egypt over the next five years: UAE-based oil and gas company Dragon Oil plans to invest an additional USD 650 mn in Egypt over the next five years by acquiring operating assets in the Western Desert, COO Tayeb Huwair told Hapi Journal without disclosing which units the company is interested in purchasing. The new investments would bring the company’s total capital in the country to USD 1.5 bn.
Company targets 17% increase in oil production: The company plans to increase its production to around 70k bbl/d over the next three years, up from 60k bbl/d currently, Huwair said.
The investment plan comes just over a month after the company wrapped up its USD 500 mn acquisition of BP’s Gulf of Suez assets. BP and Dragon Oil reached an agreement over the acquisition last summer, making the latter the state-owned Egyptian General Petroleum Corporation’s (EGPC) partner contractor in the Gulf of Suez Petroleum Company, a JV that was set up by BP and EGPC to undertake exploration and production operations in the area. Dragon Oil is wholly owned by Emirates National Oil Company.
CORRECTED- 18 February 2019
Dragon Oil plans to invest over the next five years by acquiring assets in the Western Desert and not the Western Sahara.