ENOC to buy out Dragon Oil
Dubai based ENOC to buy remaining shares it didn't previously own
Dubai-based Emirates National Oil Company (ENOC) has agreed to fully acquire Dragon Oil in a US $1.15 billion deal.
ENOC agreed to pay $7.47 a share for the 48.5% stake in Dragon Oil it previously did not own.
“ENOC is delighted to have agreed to fully acquire Dragon Oil. This acquisition is an exciting development for ENOC and represents a major step in ENOC's strategy of building a vertically integrated oil and gas group with a strong upstream position,” said Saeed Khoory , group chief executive.
“Dragon Oil's assets will significantly enhance ENOC's reserves and production. By achieving full control of Dragon Oil, ENOC will be able to achieve greater operational flexibility to progress the development of the assets further,” he added.
The main asset of Dragon Oil is the Cheleken contract area, in Turkmenistan’s Caspian Sea section. ENOC has agreed not to accept any offers for its Dragon Oil shares for a 12 month period.
Dragon Oil is an independent oil development and production company whose shares are traded under a dual primary listing on the Irish and London Stock Exchanges. Dragon Oil operates oilfields located in the Cheleken Contract Area Offshore Turkmenistan, in the Caspian Sea.