The Gulf of Suez Petroleum Company (GUPCO), a joint company between the Dubai government-owned Dragon Oil and the Egyptian General Petroleum Corporation, has inked a $41 million agreement to establish an offshore oil platform to develop the North Safa field in Egypt.

The agreement was reached with the Engineering for the Petroleum & Process Industries (ENPPI), Petrojet, and the Petroleum Marine Services Company (PMS), according to a press release on Thursday.

Under the agreement, 10-km-long production lines will be installed to raise the production from 10,000 barrels per day (bpd) to 15,000 bpd.

The Chief Human Resources Officer at Dragon Oil, Badria Ahmed Khalfan, said: "The agreement translates Dragon Oil's effective role as a partner committed to strengthening the ties between the UAE and Egypt through mutually beneficial expansion plans that contribute to creating long-term value for all stakeholders."

Khalfan added: "This agreement also comes within the company’s strategic planes to foster its growth and expansion in the Egyptian market through intensifying the exploration, developing the fields, and repairing the wells to increase the production from the oil fields in Gulf of Suez."

It is noteworthy to mention that Dragon Oil, an upstream exploration and production platform, has recently announced its first oil discovery in the Gulf of Suez in Egypt, which is expected to comprise about 100 million barrels in reserves.