Dragon Oil Signs $30M Deal to Drill Wells in Gulf of Suez

UAE-based Dragon Oil, a company owned by the Emirates National Oil Company (ENOC), has recently signed a major agreement with the Egyptian General Petroleum Corporation (EGPC). The deal, valued at $30 million, focuses on drilling two new oil and gas wells in the Gulf of Suez. This agreement highlights Dragon Oil’s ongoing efforts to expand its presence in Egypt and support the country’s energy development goals.

Dragon Oil’s Commitment to Egypt

Eng. Abdulkarim Ahmed Al Mazmi, Acting CEO of Dragon Oil, emphasized the company’s dedication to growth and sustainability in Egypt. Speaking about the agreement, he said, “The signing of this agreement reaffirms Dragon Oil’s commitment to strengthening its strategic presence in the Arab Republic of Egypt. It also supports EGPC’s efforts to develop energy resources in the Gulf of Suez region.”

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel 

The Board of Directors of Dragon Oil, chaired by Saeed Mohamed Al Tayer, has been guiding the company’s strategy for long-term growth and sustainability. This agreement is part of the company’s broader vision to continue investing in key regions while supporting local energy initiatives.

Details of the Dragon Oil Agreement

The new agreement will see Dragon Oil drill two new wells in the Gulf of Suez, one of Egypt’s most significant regions for oil and gas production. The $30 million investment will go toward exploration, drilling, and ensuring the wells meet international safety and environmental standards.

The Gulf of Suez has historically been a vital area for Egypt’s oil production, and the new wells are expected to boost local energy output. This development will help Egypt meet its growing energy needs and strengthen partnerships with international oil companies.

Egypt Signs Additional Energy Deals

Egypt has also been active in signing agreements with other international energy companies. Recently, the country signed two more deals:

1. Parenco Egypt Agreement – Worth $46 million, this deal involves re-awarding the North Sinai offshore area to Parenco Egypt. The agreement includes investments for drilling three new wells. Parenco Egypt is a subsidiary of Egypt Kuwait Holding Company (EKH), and this investment is expected to strengthen Egypt’s offshore oil production.

2. Apache Agreement – Egypt signed a $35 million deal with Apache, a major international oil company. The deal focuses on the Western Desert and includes the creation of five new exploration areas. Under this agreement, Apache will drill 14 new wells, further enhancing Egypt’s oil and gas production capacity.

Importance of These Deals for Egypt

These agreements come at a crucial time for Egypt’s energy sector. The country has been striving to boost its domestic oil and gas production to reduce reliance on imports. By partnering with international companies like Dragon Oil, Parenco Egypt, and Apache, Egypt can access advanced technology, investment, and expertise that help improve exploration and drilling efficiency.

Drilling new wells in the Gulf of Suez, North Sinai offshore area, and Western Desert will not only increase Egypt’s energy output but also create job opportunities for local workers. Additionally, these projects are expected to contribute to economic growth by attracting foreign investments into the energy sector.

Strategic Vision of Dragon Oil

Dragon Oil has been following a strategic vision guided by its board and leadership team. The company aims to strengthen its presence in key regions, including Egypt, while ensuring sustainable and responsible operations. By investing in new wells in the Gulf of Suez, Dragon Oil continues to demonstrate its long-term commitment to the country’s energy development.

Eng. Abdulkarim Ahmed Al Mazmi reiterated that these projects are part of Dragon Oil’s broader strategy to grow sustainably, support local economies, and contribute to regional energy security.

Role of EGPC in Energy Development

The Egyptian General Petroleum Corporation plays a central role in managing the country’s oil and gas resources. By collaborating with international companies, EGPC ensures that Egypt can continue to meet its domestic energy needs while also positioning itself as a key player in the regional energy market.

The partnership with Dragon Oil, along with agreements with Parenco Egypt and Apache, shows Egypt’s commitment to working with trusted partners to explore new energy resources and modernize its energy sector.

Impact on Local Economy and Energy Security

These projects are expected to have a significant impact on Egypt’s economy. The development of new oil and gas wells can lead to:

• Increased local energy production – Meeting domestic demand and reducing imports.

• Job creation – Opportunities in drilling, exploration, and related industries.

• Foreign investment – Strengthening Egypt’s position as a hub for international energy companies.

• Technological advancement – Bringing in international expertise and modern drilling techniques.

By increasing domestic production and collaborating with international partners, Egypt is taking important steps to secure its energy future and support sustainable economic growth.

The signing of the $30 million agreement between Dragon Oil and EGPC marks a significant step for Egypt’s energy sector. Alongside deals with Parenco Egypt and Apache, these projects reflect the country’s commitment to expanding oil and gas production, strengthening partnerships with international companies, and supporting economic growth.

Dragon Oil’s investment in the Gulf of Suez, combined with Egypt’s strategic planning, promises to enhance the country’s energy output and reinforce its position in the regional oil and gas industry. With these developments, Egypt is on a path to meeting its energy needs while attracting foreign investment and advancing sustainable growth.