Cairo – Mubasher: The UK-based oil and gas company BP Plc said it would sell its stake in the Gulf of Suez oil concessions in Egypt to Dubai-based Dragon Oil.

The value of the transaction has not been revealed yet, Egypt Oil & Gas reported.

Upon the agreement, Dragon Oil will buy production and exploration concessions, including BP’s stake in the Gulf of Suez Petroleum Company (GUPCO).

In May, sources told Reuters that BP was about to sell the Egyptian assets to Dragon Oil for more than $600 million.

Saeed Al Tayer, vice chairman of Dragon Oil, has welcomed the agreement signed with the British company to acquire BP’s interests in GUPCO that currently produces 63,000 barrels per day (bpd) through 11 concessions and exploration areas.

The deal is subject to the Egyptian Ministry of Petroleum and Mineral Resources’ approval and is due completion in the second half of 2019, according to Emirate News Agency (WAM).

This transaction comes as part of BP’s plan to divest over $10 billion of assets globally over the next two years.

For his part, CEO of Dragon OilAli Rashid Al Jarwan said that the deal will boost the company's production and investments in a number of countries, including, Turkmenistan, Iraq, and Afghanistan.