Dragon Oil misses production forecast

Oil production at Dragon Oil, which is majority-owned by a Dubai state energy firm, increased 11 per cent in the first half compared to last year but still failed to meet forecasts, the company announced today.

Financial results for the firm are not due for another month, but the disappointing figures could undermine the position of shareholders faced with a takeover by Emirates National Oil Company (ENOC). ENOC currently owns 52 per cent of Dragon and is actively considering buying out the remaining shares.

Production growth fell in the second quarter from stronger rates recorded earlier in the year due to unexpected drilling difficulties at the company’s fields in Turkmenistan, said Abdul-Jaleel al Khalifa, the chief executive.