The tiny international oil company DNO ASA on Tuesday announced plans to sell a stake in its Norwegian subsidiary with the eventual aim of making it the Nordic country's second-largest offshore oil exploration and production company.
DNO said it plans to raise between 427 million and 538 million (US$70-88 million, euro52.7-66.4) kroner though the private placement of shares this month, and then wants to list Det Norske Oljeselskap AS as a separate company on the Oslo stock exchange within a year.
A news release said DNO intends to keep at least an 80 percent stake in the new company. The company's shares rose about 2 percent to 11.65 kroner (US$1.91; euro1.44) in afternoon trading on the Oslo stock exchange,
"Det Norske Oljeselskap will embark on an aggressive growth strategy and create long term shareholder values," the statement said.
State-controlled Statoil ASA is taking over the oil division of its smaller domestic rival Norsk Hydro ASA in a deal to be completed later this year, despite concerns that the new StatoilHydro would be too dominant on the Norwegian continental shelf.
DNO said its ambition is to become the new second oil company in Norway, a major exporter of oil and natural gas from its offshore fields.
Earlier this year, Norwegian Petroleum Safety Authority rejected DNO's application to drill an oil well off Norway, saying the company was too small to have the staff and competence for such an operation.
According to DNO's 2006 annual report, it had 33 permanent staff at the end of the year.
The Oslo-based company also has interests in Norwegian offshore fields operated by other companies, including a 15 percent stake in the Goliat field off northern Norway, one of the largest finds in a decade.
DNO also has oil projects in Yemen, Kurdish-controlled areas of Iraq, Mozambique and Equatorial Guinea.
http://www.dno.no
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