Saif Al Falasi, Group Chief Executive of ENOC commented,'As majority shareholders in Dragon Oil we believe there is a need to refocus the Turkmenistan operations and ensure field life sustainability. My initial view is that Dragon Oil should target a more sustainable and de-risked Turkmenistan production profile of c. 90,000 barrels per day over the near term in lieu of its stated target of 100,000 barrels per day.
As we see it, there are operating challenges associated with sustaining production at Dragon Oil's forecast levels. Mitigating these operating issues will likely require additional investments. That's why I don't see a need for Dragon Oil to maintain a dividend profile in the near term. These are difficult decisions for any publicly listed company and we see this as another reason for delisting Dragon Oil.
I personally have great respect for the Board and Management of Dragon Oil, who have done an excellent job of taking the company to where it is today, but I now want to enable Dragon Oil to draw upon ENOC's financial and operating strength to overcome these challenges.'