International Finance
Oil & Gas

BP’s sale of GUPCO stake marks the end of a 50-year partnership

The company will sell its stakes to Dragon Oil for more than $600 million, according to industry sources

British multinational oil and gas company BP is close the sale of its stake in Gulf of Suez Petroleum Company (GUPCO). The sale of its stakes in GUPCO would mark the end of BP’s 50-year-old partnership. The company will sell its stakes to Dubai-based Dragon Oil for more than $600 million, according to industry sources.

However, BP spokesperson declined to comment on the sale.

The proceeds from the sale will help BP in fulfilling its goal of selling more than $5 billion worth of assets. The decision comes after its acquisition of BHP’s onshore oil and gas assets for its $10.5 billion in the US last year.

Dragon Oil is a  privately held and wholly owned subsidiary of Emirates National Oil Company (ENOC). The company said that it plans to widen its international operation while boosting its production to 300,000 barrels of oil equivalent per day by 2025, Reuters reported.

Sources said that GUPCO produces more than 70,000 barrels per day of oil and 400 million cubic feet per day of gas. The Ministry of Petroleum in the Egyptian authority has granted an approval on the GUPCO sale. However, the approval came after it objected to BP’s agreement with SDX Energy, which focused on North African oil and gas projects. The company was planning to buy some of BP’s Egyptian assets.

According to Reuters, Dragon Oil produces 90,000 barrels per day in its asset in Turkmenistan’s Cheleken field. The company also has a 100 percent interest in East Zeit Bay block.

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