North African explorer Sea Dragon Energy has acquired a 12.75 per cent stake in an oil block in the Gulf of Suez, offshore Egypt
Egypt’s Pico International Petroleum holds a 37 per cent interest in the same South Ramadan concession, while General Petroleum Company (GPC) occupies the remaining 50.25 per cent operating ownership.
The 26.2 sq km concession, which is located in 27 metres of water, has produced 3.75mn barrels of light oil until now.
The concession is located between the Ramadan field containing 550mn barrels of oil and the Saqqara field, estimated to contain 80mn barrels of light oil.
Sea Dragon Energy’s 10-year contract is worth US$23mn, which includes development of a new well and facility upgrades, the company said.
The energy firm’s chief executive officer Paul Welch said, “Securing an interest in this concession underpins our focus on developing reserves and expanding production within the Gulf of Suez.
“The capital raised from the recent sale of our Upper Egypt assets will be redeployed into an area where we had considerable success and understand the geology well. I look forward to reporting on the development of this concession in the coming months.”
