DNO International and RAK Petroleum have signed definitive documents to merge RAK Petroleum's oil and gas operating companies into DNO International in exchange for DNO International shares.
The merger is part of DNO International's strategy to expand its operations in the MENA region, while securing a more diversified asset base through the acquisition of existing reserves and production.
Currently, DNO International's working interest production averages 45,000 barrels per day of oil equivalent.
RAK Petroleum's MENA operating subsidiaries' immediate production contribution will be 7,500 barrels per day of oil equivalent, increasing DNO International's capacity to 15,000 barrels per day.
DNO International managing director Helge Eide said that the new entity will be present in five MENA countries, and the firm will further expand its operations in the Kurdistan region of Iraq.