STOCKHOLM (Dow Jones Newswires), Sep. 5, 2011
Norwegian oil company DNO International said Monday it has signed a definitive agreement to merge RAK Petroleum's oil and gas operating companies into the Norwegian company, completing talks that started in July of this year.
Under the proposed transaction with United Arab Emirates-based RAK Petroleum Public Company Limited, DNO will issue RAK Petroleum shares at NOK9.50 a share, valuing DNO at $1.64 billion, against a value of the RAK Petroleum assets of $250 million.
"By combining our two companies' assets and people, the enlarged DNO International will be positioned not only to extract greater value from the existing exploration and production properties but to play an even more active role in the Middle East and North Africa or MENA region," DNO Managing Director Helge Eide said in a statement.
He added that DNO is committed to further expanding its operations in the Kurdistan Region of Iraq.
Copyright (c) 2011 Dow Jones & Company, Inc.
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