DNO to Request Seats on Faroe Board

DNO to Request Seats on Faroe Board
DNO ASA reveals that it will request seats on the board of Faroe Petroleum plc.

Norwegian oil and gas operator DNO ASA, which retains indirect interests in North Sea assets through its 28.23 percent stake in Faroe Petroleum plc, revealed Thursday that it will request seats on the board of the company.

Faroe Petroleum announced Thursday that its board “acknowledges receipt of a request from DNO ASA that a general meeting of the company be convened for the purposes of considering a shareholder resolution to appoint Bijan Mossavar-Rahmani, executive chairman of DNO, and Bjorn Dale, managing director of DNO, to the board”. 

The company said the board is “very concerned that DNO has taken this action” and stated that the board “intends unanimously to recommend that shareholders vote against DNO’s proposed resolutions”.

“As a competitor to Faroe on the Norwegian Continental Shelf, the board believes it would be inappropriate for directors proposed by DNO to be appointed to the board of Faroe given the potential conflicts of interest between Faroe and DNO,” Faroe said in a company statement.

“The board believes that the addition of the executive chairman and managing director of DNO to the board would not serve the interests of Faroe’s shareholders as a whole or that of the company,” Faroe continued.

Founded in 1971, DNO holds stakes in licenses in the Kurdistan region of Iraq, Norway, Oman, the United Kingdom and Yemen. Faroe Petroleum, which was formed in 1997, holds interests in licenses across Norway, the UK and Ireland.


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