Norwegian oil operator DNO has further boosted its stake in Aberdeen-based Faroe Petroleum.
The Oslo firm said in a stock market announcement that it now holds a 28.7% share in the UK and Norway-focussed oil explorer.
It’s after DNO managed to acquire a 27% stake in Faroe over three transactions last week, however the firm stated it was not making a bid for the firm.
Britain’s takeover code says that a firm publishing a “no intention to bid statement” needs to wait at least six months before crossing the 30% ownership threshold.
Despite DNO’s claims, John Scrimgeour, executive director of the Energy Institute at Aberdeen University, said Faroe should be braced for a takeover.
DNO purchased the shares at £1.25 each which Faroe said “undervalued” the firm and its prospects.
The Norwegian firm returned to North Sea operations last year, following a six-year hiatus to focus on its Middle East operations.
DNO said last week that it intends to “support Faroe Petroleum management’s growth focussed North Sea strategy”.
Recommended for you
Read the latest opinion pieces from our Energy Voice columnists
- How to solve Europe’s energy trilemma
- Standardising specifications: a new approach
- OPINION: Victim’s son fears another Piper Alpha is ‘just around the corner’
- OPINION: Contractor lawyers in demand as firms reluctant to return to bloated workforces
- OPINION: Are Electric Vehicles changing BP’s business model?