Oil development and production company Dragon Oil has announced that it has employed a major accountancy firm to assist in an internal investigation into financial irregularities.
The company, partly owned by Emirates National Oil Company (ENOC), have offered few details of the alleged irregularities, but in a statement Dragon Oil said that the investigation would focus on former senior managers its marketing and contracts department and be carried out by KPMG (Dubai) in conjunction with the company’s own internal audit department.
Dragon Oil’s chief executive Dr Abdul Jaleel Al Khalifa underlined how seriously the company were taking the allegations.
“This matter is completely unacceptable,” he said. “Having identified the possibility of these irregularities, the board is moving swiftly to investigate and will take actions to ensure that purchasing procedures are operating properly and that appropriate actions are taken.”
“An initial review suggests that the matter will not have a material impact on the financial position of the company. Dragon Oil remains committed to executing its strategy of developing its oil and gas production activities and field infrastructure and to diversifying its asset portfolio,” he added.
The statement also said that Dragon Oil was reviewing all procurement procedures and was postponing its annual results, due in early March, until the initial investigation was completed. The company also pledged to update shareholders on progress being made in the investigation before the end of March.
