DNO may consider oil mergers

Bloomberg

The start of oil exports from northern Iraq earlier this month has sparked a wave of takeover interest among operators in the area. Heritage Oil agreed to buy Turkey’s Genel Energy for $2.5 billion and Addax Petroleum is in talks regarding a "potential transaction."

"Our growth strategy has so far primarily been organic, but once our finances are more robust there’ll be more focus on other strategies, including mergers and possible acquisitions," Eide said in Oslo. Iraq, Yemen and East Africa are "primary areas of interest."

Eide declined to say whether DNO had been approached by potential bidders.

DNO last month said it may sell assets and cut capital spending after reporting a second consecutive operating loss. The company is conducting a "more selective exploration strategy," Eide said.