Dana Petroleum Plc, the U.K. explorer acquired by Korea National Oil Corp (KNOCP). in 2010, plans to expand in west Africa as it seeks to double production over the next five years.
The company, which has assets in the North Sea, Egypt and Africa, aims to produce at least 100,000 barrels of oil equivalent a day by 2016, Chief Executive Officer Marcus Richards said in an interview in London yesterday. The company already has acreage in waters off Morocco, Mauritania and Guinea and is interested in prospects along the west African coast.
“I expect we’ll have more of a balance between the U.K. and the rest of the world,” said Richards, a former executive at BP Plc. (BP/) Britain currently represents about 70 percent of the business and the company is the second-largest holder of offshore acreage in the U.K. after Centrica Plc (CNA), he said.
Dana, which operates independently from KNOC and pays its owner a dividend, plans to invest about $1 billion a year in its existing businesses to increase output. The company has an untapped $900 million lending facility that it could use if it decides to make any acquisitions, Richards said.
The Aberdeen, Scotland-based company won’t use the money to buy production, he said. The company is interested in operating more fields and entering new countries.