Rak Petroleum, Norways DNO merges

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Emirati firm RAK Petroleum and Norways DNO are set to seek additional Middle East partnerships after agreeing to merge their oil operations under the DNO banner in a deal that has sent shares up by 16 percent.

“There may be an opportunity for a company like DNO in its enlarged form to take the lead in aggregating other MENA (Middle East-North Africa) focused companies whose share prices have been hit by the perception of increased risk,” Bijan Mossavar Rahmani, who is both chairman of the DNO board and RAKs chief executive said.

As part of this new deal, RAK Petroleum will be able to boost its shares in DNO from 30 to 41 percent. RAK will also be able to move its oil and gas acreage, including two producing fields off Oman to a new DNO subsidiary to be managed from Oslo.

It is also learnt that DNO is intending to list the merged company on the London Stock Exchange whole keeping its Oslo listing.

Sources: REUTERS; Arabian Business

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