In October 2019, four months after entering the Gulf of Suez, Dragon Oil announced that it would invest a billion dollars until 2024 to develop its assets there, in order to boost its production of oil.
On February 16, Dragon Oil, a subsidiary of the UAE state oil company ENOC, discovered an oil deposit in the Gulf of Suez. It is the first time that the company has got its hands on oil in this region, which it entered in June 2019, after acquiring mature assets from BP.
According to the Emirati public news agency Wam which published the news, the discovery would be one of the largest in the basin in the last 20 years, with a possible size of nearly 100 million barrels. The well test work should make it possible to locate the public on the exact size of the perimeter. Moreover, no additional technical information was provided on the discovery.
Once in production, the perimeter will be an important step for Egypt towards its project of achieving oil self-sufficiency.
Dragon Oil plans to increase its oil production from the current 160,000 barrels per day to 300,000 barrels per day by 2026 and has placed Egypt, Iraq and Turkmenistan at the heart of this plan. The company is also present in Algeria and Tunisia.