Traditional integrated, multi-national oil companies are increasingly worried about the way in which nationalised (or part-nationalised) rivals are encroaching onto their natural territory.
One example is the way in which national oil companies (NOCs) are beginning to take an interest in upstream activities, and acquiring the kinds of technical expertise they used to rely on internationals (IOCs) to provide. Now we also know that the NOCs are outstripping the IOCs in capital spending, thanks to a new piece of research from Evaluate Energy.
According to the report, which surveyed over 50 NOCs and the top seven major IOCs, capital spending by NOCs has grown by 131 per cent from 2005 to 2009, while that by the IOCs has increased only 59 per cent in that time.
… it is now.
Well, sort of.
We are hearing KNOC and its advisers Merrill Lynch swept the market for a 29.9 per cent stake in Dana Petroleum on Friday morning. The trades haven’t printed yet but they will.
Merrill is believed to have bought stock from shareholders who had already pledged to back KNOC’s £18 per share offer for the oil explorer.
KNOC had letters of intent from 48.6 per cent of Dana’s shareholders to accept the offer, which put them in a very strong position to close the deal.
By acquiring stock on Friday it has reaffirmed its to commitment to the deal and signalled that it wants to complete the acquisition of Dana as soon as possible. The reason Dana didn’t buy more shares – ie go above 30 per cent – is that it would have triggered a mandatory offer and that would have reset the takeover timetable.
Shares in Dana are up 4p at £17.91 at pixel time.
Here’s the latest from the FT’s Lex on the decision by KNOC to launch a hostile bid for Dana Petroleum:
Korea National Oil Corporation must want North Sea oil badly. Why else go hostile in its £18-a-share approach for Dana Petroleum, which values the UK-listed exploration and production group at nearly £1.9bn? The astonishing agression from the Asian state entity, which has seen similar deals slip away before because it was too timid in its approaches, has raised the stakes all around.
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South Korea’s national oil company on Friday launched a landmark £1.87bn hostile takeover offer for Dana Petroleum, after shareholders owning almost half of the UK oil explorer offered their support. Miles Johnson, companies reporter, talks to Daniel Garrahan about whether KNOC will pay over the odds.