Turkmenistan: Dubai Firm to Obtain Full Stake in Dragon Oil

Dubai's state-owned Emirates National Oil Company (ENOC) is to acquire full control of Dragon Oil, a company operating almost exclusively in the Turkmen portion of the Caspian Sea.

ENOC currently holds 51.5 percent of Dragon Oil's shares. The takeover, valued at $1.14 billion, was first mooted in June.

"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," Saeed Khoory, ENOC's Group Chief Executive, said in a statement released on November 2.

Dragon Oil controls an estimated 84.9 billion cubic meters of gas reserves in the Caspian Sea and produces about 50,000 barrels of oil per day. The company boasts of excellent relations with Ashgabat and a workforce that is 90 percent Turkmen. However, a corruption scandal in early 2009 resulted in the dismissals of several top managers. [For background see the Eurasia insight archive]