Middle East

Dragon Oil closes in on Petroceltic acquisition

Dubai: Dubai-based Dragon Oil is closing in on the acquisition of Dublin-headquartered Petroceltic for about £491.5 million, a takeover that would help Dragon achieve its aim of diversifying its oil and gas interests away from Turkmenistan. Among its interests, Petroceltic has a large gas project in Algeria. 

Dragon Oil, which is 54% owned by the Dubai government via Enoc’s shareholding, is offering 230 pence a share in cash for Petroceltic, a 28.85% premium to its closing share price on Friday.

The two companies have complementary oil producing and exploration assets in North Africa and Iraq, though Dragon Oil’s principal asset is offshore Turkmenistan in the Caspian Sea. The acquisition would give it exposure to production in Algeria, eastern Europe, and elsewhere. [07/10/14]

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