Related: Dragon Oil announces 19% production increase | Dragon Oil confirms staff took money
Emirates National Oil Company (ENOC) has confirmed that it is planning to secure control of the Dubai-based but London listed exploration and production company Dragon Oil.
Dragon Oil reported an approach from an unnamed company and news agency Reuters reported that ENOC, the Dubai state-owned energy company, has stated it was behind the takeover bid.
ENOC already owns 52% of Dragon Oil and reports suggest that it plans to pay around US$1.1-$1.5 billion to secure the company.
“It (ENOC) is currently considering an offer price that would represent a modest premium to Dragon Oil plc’s closing share price as of 3 June 2009,” Reuters reported an ENOC statement as saying.
Companies such as Royal Dutch Shell and BP have unsuccessfully tried to buy Dragon Oil in the past and it is thought that ENOC will have to increase its initial offer significantly if it is to be successful.
Dragon Oil are having a good 2009 with production up 19% and the company stated that they were in a strong financial position with a cash balance of $833 million with no debt at the end of the first quarter of 2009.
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