Egypt’s North July offshore block, located northeast of the Gulf of Suez, has become a battleground for Ades International and Dragon Oil, both oil developers of UAE origin.
The two companies are competing alongside Cheiron, an Egyptian independent oil services company, for the development of the potentially oil-rich site, according to a report by Arabian Gulf Business Insight.
Dubai-based Ades International and Dragon Oil (a subsidiary of Dubai’s Emirates National Oil Company) were shortlisted by Egyptian oil authorities, along with Cheiron.
Authorities believe the concession holds promising hydrocarbon deposits and is one of several blocks offered in the country’s recently closed bidding round, which included strategic exploration areas spanning the Mediterranean Sea, Gulf of Suez, and Western Desert.
The North July block falls under the jurisdiction of the Egyptian General Petroleum Corporation (EGPC), which shortlisted the three developers after the bidding window closed in mid-June.
Other key insights on Egypt’s oil sector
Moreover, Egypt holds proven oil and gas reserves of approximately 2.9 billion barrels of oil and 2.2 trillion cubic meters of gas as of the end of 2024, according to Dragon Oil.
To reverse a decline in upstream oil activity and attract new foreign investment, Egypt is offering more exploration and production opportunities.
In May, the government began seeking long-term LNG contracts through 2030 to meet growing demand amid declining local output.
In recent months, Egypt has also offered 12 new onshore and offshore oil and gas concessions to foreign developers.
Several of these have already been awarded.
For example, a consortium of the US giant Chevron and Shell’s BG Group was granted rights to jointly explore the North Samian and Northwest Atoll offshore blocks.
The bidding for the North July block and other concessions closed on June 15, with evaluations and award announcements expected in August.
Unlike Ades, Dragon Oil has a well-established presence in Egypt.
In 2020, it acquired BP’s stake in the Gulf of Suez Oil Company (GUPCO).
The $600 million transaction saw Dragon Oil replace BP as the contractor for several oil production and discovery concessions in collaboration with EGPC.
