DUBAI, UAE – Emirates National Oil Co. (ENOC) confirms it is in talks to potentially acquire Dragon Oil, operator of the Cheleken Contract Area fields in the Turkmen sector of the Caspian Sea.
ENOC’s proposal values Dragon’s share capital at around £3.6 billion ($5.55 billion).
The company says it would fund the acquisition from its existing cash resources. It already owns 53.9% of Dragon’s shares.
ENOC plans to become a fully integrated global oil and gas company, by combining its downstream strengths with Dragon Oil’s upstream operating experience.
Saif Al Falasi, group CEO, said: “We believe the proposal is full and fair and provides an excellent opportunity for Dragon Oil’s shareholders…There is great uncertainty in the sector and we believe, as a long-term and supportive shareholder, that Dragon Oil has achieved as much as is possible through its existing upstream strategy.
“Moreover, Dragon Oil stands to benefit significantly from being part of the integrated platform that ENOC offers…Our strategic vision is to become a leading oil and gas company by expanding our presence in international markets and establishing an exploration and production portfolio.”