Dubai-controlled downstream outfit Emirates National Oil Company (Enoc) took full control of independent player Dragon Oil after it has agreed to buy the remaining 48% of the exploration and production company valued at $3.88 billion.
Enoc said in June it was considering an offer for Dragon as the company sought to expand its presence internationally and to build on its ambition to become a major integrated oil and gas company.
“This acquisition is an exciting development for Enoc and represents a major step in Enoc’s strategy of building a vertically integrated oil and gas group with a strong upstream position,” said Saeed Khoory , group chief executive of Enoc.
The state-run refiner and marketer is mainly interested in Dragon’s deposits in Turkmenistan, which it will use to make up for dwindling supplies in the emirate, and to meet rising domestic demand.
“Dragon Oil’s assets will significantly enhance Enoc’s reserves and production. By achieving full control of Dragon Oil, Enoc will be able to achieve greater operational flexibility to progress the development of the assets further.”
Dragon’s main assets are in the Cheleken Contract Area, where it owns two offshore oil and gas fields, Dzheitun and Dzhygalybeg.
The company’s proved and probable oil reserves stood at of 645 million barrels and 3.2 trillion cuft of gas resources. Dragon Oil produces about 42,808 barrels per day (bpd) from the Cheleken Contract Area this year.
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