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Tue 2 Dec 2014 09:26 AM

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Dubai's Dragon Oil drops $785m bid for Irish rival

Company backed by ENOC says it has abandoned bid due to 'prevailing market conditions'

Dubai's Dragon Oil drops $785m bid for Irish rival
(Photo for illustrative purposes only)

Dubai-based Dragon Oil, an energy exploration, development and production company, has announced that it has dropped a bid for rival firm Petroceltic.

The company, which has Emirates National Oil Company (ENOC) as its majority shareholder and produces in Turkmenistan, said in a statement that it has abandoned plans for a buyout of the Dublin-headquartered company.

The original offer was of the order of 230 pence sterling per share in cash, or £492 million ($785 million) in total.

"Dragon Oil now confirms that, in the light of prevailing market conditions, it no longer intends to make an offer for Petroceltic," the company added.

Oil- and gas-producer Petroceltic previously said it was waiting for ENOC to sign off on a formal offer before the possible buyout went any further.

Petroceltic International is an oil and gas exploration and production company and has operations in North Africa, the Mediterranean Basin and the Black Sea.

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