Dragon Oil's output up by 9pc
Friday October 23 2009
DRAGON Oil said its average daily production rate increased 9pc in the third quarter after four new wells were put into production between July 1 and September 30.
The oil exploration company boosted production from its 58 wells by 46,060 barrels of oil per day after it invested $56m (€37.4m) in the quarter. Dragon Oil is perhaps the most cosmopolitan company on the Irish stock exchange. Based in Dubai, it is listed on the Dublin and London stock exchanges, but is incorporated in Bermuda. It is led by a Saudi Arabian, but does most of its business in the Caspian Sea off the Turkmenistan coast. Most of the oil is then routed through Iran to international markets.
"During 2009, we have made considerable progress on development planning and sourcing additional rigs in the challenging environment of the Caspian Sea region," chief executive Abdul Jaleel Al Khalifa said.
Bank of America Merrill Lynch dropped Dragon Oil as a client this summer because of its ties with Iran. As the beneficiary of a $45bn US government bailout, Merrill Lynch no longer advises companies with links to countries such as Iran which is building atomic bombs against the wishes of the US. Dragon Oil is now being advised by London-based HSBC.
- Thomas Molloy
Irish Independent
