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Dubai’s Emirates National Oil Company (Enoc) says it will delist Dragon oil with effect from 7 September, after it succeeded in winning the required majority vote from minority shareholders in the Turkmenistan-focused upstream company. Enoc is paying £4bn ($6.2bn) for the 46% stake in Dragon Oil that it did not already own, and access to a 100,000 b/d upstream asset.
The takeover by Enoc, which now becomes a fully integrated upstream-downstream national oil company, has coincided with a slump in oil prices and comes amid questions as to the sustainability of Dragon’s production targets for its key Cheleken asset offshore Turkmenistan. Dragon said in announcing Q2 2015 results on 7 August that production from Cheleken exceeded 100,000 b/d in June and revealed plans for infrastructure upgrades that will sustain production at around that level for the next five years. (CONTINUED - 1084 WORDS)