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Dragon Oil planning acquisitions next year: ceo
Posted on Friday, 12 October 2018 07:33
Dubai-headquartered upstream oil and gas exploration, development and production company Dragon Oil is planning to take to the acquisition trail in 2019, according to the firm’s chief executive.
Speaking in an interview with Reuters, Ali Rashid al-Jarwan said the firm intends to spend around USD 500.00 million on the purchases to continue its international expansion.
He added that it will target other oil and gas assets in a bid to make the company more profitable, efficient and sustainable.
However, the chief executive stopped short of naming any potential targets or confirming whether it is already in talks with prospective candidates for acquisition, although he did identify Africa, specifically the northern part of the continent, as a likely destination.
According to Ali Rashid al-Jarwan, Dragon Oil’s strategy specifies that it hopes to produce 300,000 barrels of oil equivalent per day by 2025.
The firm is a wholly-owned subsidiary of the Emirates National Oil Company and its principal producing asset is the Cheleken Contract Area in the Caspian Sea.
It also partners with other companies on assets in Iraq, Algeria, Egypt and Afghanistan, as well as offshore Tunisia.
Dragon Oil employs close to 1,900 people and has oil and condensate 2P reserves comprising 663.00 million barrels.
The company previously traded on the London and Irish stock exchanges, until Emirates National Oil Company paid GBP 1.83 billion to take it private in early September 2015.
Zephyr, the M&A database published by Bureau van Dijk, shows that the most valuable deal targeting an oil and gas extraction company to have been announced worldwide this year is Energy Transfer Equity’s USD 27.00 billion purchase of Energy Transfer Partners.
This was followed by two USD 10.50 billion deals – BP American Production Company taking over Petrohawk Energy and the Williams Companies acquiring Williams Partners.
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