Marasi Magazine Issue 35

MIDDLE-EAST NEWS
Dragon Oil takes over BP stake in Egypt’s GUPCO
Dragon Oil, the fully owned exploration and production platform of
Emirates National Oil Company (ENOC), has acquired a stake in The
Gulf of Suez Oil Company (GUPCO Egypt) after obtaining approval
from the Egyptian Ministry of Petroleum and Mineral Resources. As
per the acquisition terms and conditions, Dragon Oil has become the
contractor with Egyptian General Petroleum Corporation (EGPC) in all
oil production and discovery concessions in the Gulf of Suez area. The
move will enhance Dragon Oil’s strategic production and investments
in a number of regions and countries, bringing the company's daily production
to an estimated at 150,000 barrels per day, with the company
aspiring to reach production of 300,000 barrels of oil per day by 2026.
GUPCO Egypt currently produces 60,000 barrels per day from 11
concessions and has a sustainable production target of 75,000 barrels
by 2021. Dragon Oil plans to boost production to levels above that
figure by increasing drilling and investment to maintain this level of
production over the next 10 years.
OSC signs USD 110 Mn loan to
refinance five ships
Saudi Arabia’s International
Maritime Industries inks VLCC
order with Bahri, HHI
Muscat-based Oman Shipping Company (OSC) has
agreed to a new USD 110 million ship financing deal with
banking and financial services company Standard Chartered.
The funds will be used for the refinancing of three
tanker vessels and two very large crude carriers (VLC-
Cs). The new financing facility will enable Oman Shipping
Company to optimize its debt position by reducing overall
borrowing costs and eliminating refinancing risk, while diversifying
the company’s pool of financial partners. The
company’s fleet currently stands at 50 vessels, including
LNG and LPG carriers, VLCCs, tankers, VLOCs and containerships.
Commenting on the agreement, Michael Jorgensen,
Acting Chief Executive Officer of Oman Shipping
Company said, “OSC is growing from strength to strength,
and [this] will help us explore opportunities to expand our
full-service shipping offering yet further.”
Saudi Arabia’s International Maritime Industries (IMI)
recently signed a vessel purchase agreement (VPA) with
the National Shipping Company of Saudi Arabia (Bahri),
and a subsequent sub-contract agreement with South
Korean shipbuilder Hyundai Heavy Industries (HHI), to
build one very large crude carrier (VLCC).
The anticipated 319,000 dwt tanker is to be constructed
at HHI’s Ulsan shipyard and delivered in October
2021. Other agreements related to licensing, technical
services and training were also signed with HHI to
ensure capability building and knowledge transfer.
The project award is said to further strengthen the
business relationship between IMI and its shareholders,
as well as contribute to the development of a localized
maritime industry supply chain infrastructure, technical
expertise for Saudi nationals, and a track record in shipbuilding.
10 SEPTEMBER - OCTOBER 2019