x Abu Dhabi, UAEThursday 20 July 2017

Dragon Oil misses production forecast

Oil production at Dragon Oil, which is majority-owned by a Dubai state energy firm, increased 11 per cent in the first half.

Oil production at Dragon Oil, which is majority-owned by a Dubai state energy firm, increased 11 per cent in the first half compared to last year but still failed to meet forecasts, the company announced today. Financial results for the firm are not due for another month, but the disappointing figures could undermine the position of shareholders faced with a takeover by Emirates National Oil Company (ENOC). ENOC currently owns 52 per cent of Dragon and is actively considering buying out the remaining shares.

Production growth fell in the second quarter from stronger rates recorded earlier in the year due to unexpected drilling difficulties at the company's fields in Turkmenistan, said Abdul-Jaleel al Khalifa, the chief executive. "Good progress was made with securing rigs to support our long-term drilling programme," he said. "But due to changes in the 2009 drilling programme and certain operational issues, the average production for the first half of 2009 was below our expectations."

The company produced the equivalent of 42,808 barrels of oil per day in the first half, up from 38,482 barrels per day in the first half of last year. The company will hold to a goal of increasing production by 15 per cent every year between now and 2011, he said. Dragon's stock fell 6.75 pence or 2 per cent on the London stock exchange, to £3.185. cstanton@thenational.ae