After weeks of heated talks, Dragon Oil (DGO) has accepted a revised offer from its majority shareholder, Dubai-based Emirates National Oil Company (ENOC). ENOC, which already holds around 54 per cent of the Turkmenistan driller, has increased its offer price to 750p. That follows an originally unspecified bid that was bumped up to 735p a share in May.
The improved offer, which values Dragon at around £3.7bn, has been recommended by the independent committee of the board. But ENOC still requires majority support from the oil company’s minority shareholders, who hold about 23 per cent of its shares in issue. The three largest minority shareholders control around 14 per cent of the company.
Dragon Oil is registered in Ireland, headquartered in Dubai and maintains the core of its operations in Turkmenistan. The driller also has some interesting prospects in southern Iraq that are, for now, well away from the mujahedeen. The loftier offer is well timed, given that Dragon’s production just hit its plateau rate of 100,000 barrels a day. The company now expects to maintain this rate for a minimum of five years.
