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FINANCIAL NEWS
Dubai- Dragon Oil to invest $870m through 2012
23 Feb 2010
(MENAFN) Dubai-based Dragon Oil Plc said that it has allocated $870 million for investment in oil and gas projects through 2012 to boost its production, Bloomberg reported
The London-listed explorer said that it targets annual output growth of 10 percent to 15 percent between 2010 and 2012. It plans to spend $250 million on oil infrastructure to raise production by 15 percent this year.
Dragon has been seeking projects in the Middle East, North Africa and Central Asia to expand outside of Turkmenistan, using part of the $1.1 billion in cash it had as of December 31.
The company’s shareholders in December rejected a takeover bid from Dubai state-owned Emirates National Oil Co, which already holds 51.5 percent of the explorer.
Dragon plans to drill 11 wells this year, up from 8 last year, after missing a 15 percent production growth target last year. Output rose 9 percent to an average 44,765 barrels a day in 2009 and reached 50,000 barrels of oil a day at the turn of the year.
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