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Released June 10, 2019 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)-- BP plc's (NYSE:BP) (London, England) plan to divest itself of $10 billion in global assets over the next two years continues with an agreement to sell its mature interests in Gulf of Suez oil concessions in Egypt to Dragon Oil, the Dubai-based oil and gas company.
The deal, with an estimated value of $600 million, will see Dragon 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). BP's ongoing asset sale is to help cover the costs of acquiring BHP Billiton plc's (NYSE:BHP) (Melbourne, Australia) U.S. shale assets last year at a cost of $10.5 billion. Industrial Info is tracking nearly $33.5 billion in active projects involving BP worldwide, including about $19 billion worth that are under construction. For additional information, see November 15, 2018, article - BP Adds to Oil Production, Tweaks Refineries with Nearly $34 Billion in Projects.
"Egypt is a core growth and investment region for BP," said Bob Dudley, BP chief executive. "In the past four years, we have invested around $12 billion in Egypt-- more than anywhere else in our portfolio--and we plan another $3 billion 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."
Hesham Mekawi, regional president of BP North Africa, added: "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."
In recent years, production has started at four new gas projects in Egypt for BP, and in February the company confirmed the start of production from the second stage of the West Nile Delta development, which has five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks. The first stage started producing in 2017 from two fields, Taurus and Libra. The next two, Giza and Fayoum, with eight wells, is currently producing around 400 million cubic feet of gas per day (mmscfd) and is expected to ramp up to a maximum rate of approximately 700 mmscfd. The fifth field, Raven, is expected to start production later this year at 450 mmscfd, gradually increasing to its maximum capacity of 900 mmscfd.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
The deal, with an estimated value of $600 million, will see Dragon 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). BP's ongoing asset sale is to help cover the costs of acquiring BHP Billiton plc's (NYSE:BHP) (Melbourne, Australia) U.S. shale assets last year at a cost of $10.5 billion. Industrial Info is tracking nearly $33.5 billion in active projects involving BP worldwide, including about $19 billion worth that are under construction. For additional information, see November 15, 2018, article - BP Adds to Oil Production, Tweaks Refineries with Nearly $34 Billion in Projects.
"Egypt is a core growth and investment region for BP," said Bob Dudley, BP chief executive. "In the past four years, we have invested around $12 billion in Egypt-- more than anywhere else in our portfolio--and we plan another $3 billion 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."
Hesham Mekawi, regional president of BP North Africa, added: "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."
In recent years, production has started at four new gas projects in Egypt for BP, and in February the company confirmed the start of production from the second stage of the West Nile Delta development, which has five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks. The first stage started producing in 2017 from two fields, Taurus and Libra. The next two, Giza and Fayoum, with eight wells, is currently producing around 400 million cubic feet of gas per day (mmscfd) and is expected to ramp up to a maximum rate of approximately 700 mmscfd. The fifth field, Raven, is expected to start production later this year at 450 mmscfd, gradually increasing to its maximum capacity of 900 mmscfd.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Our European headquarters are located in Galway, Ireland. Follow IIR Europe on: Facebook - Twitter - LinkedIn For more information on our European coverage send inquiries to info@industrialinfo.eu or visit us online at Industrial Info Europe.
