Genel Energy Confirms Designs on Norway's DNO

Another leader of Genel Energy has stated his opinion that Norway's DNO is a possible takeover target.

"DNO is our natural partner so it makes a lot of sense if we can take them into Genel," Mehmet Sepil, CEO of Genel Enerji, told Reuters.

Genel Energy, formed by the combination of Vallares Plc and Turkey's Genel Enerji, has made no secret of its plans to make acquisitions with its $2.2 billion in cash.

But Sepel said on Sunday that the company is not in detailed talks with anyone as it completes its own merger, which is expected to be completed around 21st November.

Sepil said he would remain with the new company but would not be involved in the day-to-day management.

"We are interested in a few companies, (but there are) no detailed talks at this point", he added.  "I'm sure in the next few months you'll see a lot of announcements coming from us."

Tony Hayward said in late October he that was interested in buying DNO and its Kurdish oil licences.

DNO chief executive Helge Eide said last week that the company was ready to pursue its own acquisitions as it integrates the Gulf assets of Dubai-based RAK Petroleum. The company is producing 50,000 barrels per day of crude at its Tawke field in Iraq's northern Kurdish region and will boost output capacity to 100,000 bpd next year.

DNO's stock surged 21 percent on Friday on reports that Exxon Mobil had completed a deal with the Kurdistan Regional Government for six exploration blocs.

"The Exxon story was probably great news for everybody but not for us," Sepil said. "I really wished they had come six months later."

(Source: Reuters)

Comments are closed.