Dragon Oil has announced the start of a US$200 million share buyback programme that it said would return cash to its shareholders
The company will buy back $200 million worth of shares, up to 5 per cent, which would return some of the large profits it has generated from raising production and higher oil prices to shareholders.
It has also insisted that it would remain committed to expanding its operations.
Dragon Oil chief executive Abdul Jaleel Al Khalifa said in a statement, “With a solid track record of delivering organic growth in production and reserves from our key asset, we are well positioned to pursue our diversification strategy and to return value to our shareholders.”
The firm, which is majority-owned by Dubai’s Emirates National Oil Company, said it remained committed to its diversification strategy of acquiring new assets outside of Turkmenistan.
It added that it had accumulated a cash pile of $1.6 billion at the end of March, which would allow it to actively pursue other opportunities in the region following conclusion of the buyback programme.
