BP has signed an agreement to sell its interests in Gulf of Suez oil concessions in Egypt to Dragon Oil, a wholly owned subsidiary of Emirates National Oil Company (ENOC).
Under the terms of the agreement, Dragon Oil will buy producing and exploration concessions, as well as BP’s stake in the Gulf of Suez Petroleum Company (GUPCO).
The financial details of the deal were not divulged. However, Reuters reported last month that the prospective deal may value $600m, citing familiar sources.
The divestment is part of BP’s plan to shed more than $10bn of global assets in two years. It comes at a time when the company is focusing heavily on Egypt’s vast offshore gas reserves.
In February, BP commenced production from the second stage of the West Nile Delta development with the Giza and Fayoum fields becoming operational.
The West Nile Delta development includes five gas fields across the North Alexandria and West Mediterranean Deepwater offshore concession blocks.
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In the first stage, the Taurus and Libra fields started production in 2017. In the final stage, which is expected later this year, the fifth resource Raven field will begin production.
BP chief executive Bob Dudley said: “Egypt is a core growth and investment region for BP. In the past four years, we have invested around $12bn in Egypt – more than anywhere else in our portfolio – and we plan another $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.”
The latest deal with Dragon Oil is expected to complete during the second half of this year, subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval.