Dragon Oil, a key player in upstream exploration and production fully owned by the Dubai Government, has officially commenced crude oil production in Egypt. Additionally, the company has announced its plans to undertake the drilling of seven new wells over the next two years.
The Al Wasl field (North Safa), the company’s first oil discovery in Egypt, was put into production at an initial rate of 3,000 barrels of crude oil per day, the company said in a statement on Tuesday.
Discovered in 2021, the field represents one of the largest oil discoveries in the Gulf of Suez during the last two decades, with an oil reserve exceeding 95 million barrels.
The company said it will intensify oil exploration and expansion in the Gulf of Suez by developing fields and repairing wells to boost crude output and expand further in the Egyptian market.
Dragon Oil seeks to permanently expand the scope of petroleum discoveries in Egypt over long-term periods, especially since the Egyptian market is currently considered one of the most economically promising markets in the Middle East.
Dragon Oil confirmed it is investing $200 million to develop the Al Wasl oil field, with plans to drill more wells to more than double the daily output by 2026.
The project includes establishing a new offshore production platform and extending a production line and an electricity line to operate oil production pumps, in addition to a water injection project to maintain high production rates.
The company aims to complete the development work of the Al Wasl field “as soon as possible” by connecting the second well south of Belayim 293-6 with the production line this month to boost the platform’s production to 6,000 barrels of crude oil per day.
According to the plan agreed upon with the Egyptian authorities, Dragon Oil will drill seven new wells during the next two years, aiming to reach 15,000 barrels per day of crude oil production from the Al Wasl field.
