In 2014 we completed our transformation from a closely held company registered in the Ras Al Khaimah Free Trade Zone whose shares changed hands from time to time over the counter in Dubai to a public limited company established under the laws of England and Wales and listed on the Oslo Børs in Norway, a country we know well, and where we are well known, through our shareholding in DNO ASA.
The Company currently holds interests in two oil and gas companies: DNO ASA and Foxtrot International LDC. At 31 December 2020, the Company indirectly owned 44.94 percent of the total outstanding shares of DNO ASA and indirectly owned 33.33 percent of Foxtrot International LDC.
DNO was established as long ago as 1971, became the first Norwegian oil company to list on the Oslo Børs in 1981, is affectionately known as the peoples' oil company and has been a dogged survivor as so many other international oil companies, small and large, have disappeared over the decades into other entities. Indeed, DNO has not only survived but has thrived in recent years as it has reached the ranks of the largest listed European independent exploration and production companies. We are pleased that DNO’s ascent has coincided with the period in which we built a significant shareholding and engaged with management in refocusing the company and unlocking value from the existing and expanding asset base.
We were excited to enter a phase of dividend receipts from DNO ASA after several years of helping build that business to a strong financial and operational position. Thus far, we have received three dividend payments from DNO ASA, the first in September 2018, the second in March 2019 and the third in November 2019 together totalling USD 30.6 million. However, DNO suspended its dividend payments in 2020 because of the impact of the severe decline in world oil prices in March 2020. DNO plans to return to its dividend programme when financial conditions allow, although there can be no assurance of this.
Foxtrot International is a privately held exploration and production company active in West Africa and headquarted in Abidjan. Foxtrot International supplies almost three-quarters of Côte d’Ivoire’s total gas production from its offshore CI-27 licence and has recently embarked on an ambitious project to expand gas supply to two new power stations. Cash flow from Foxtrot International is expected to be positive going forward with any future capital investments funded by operating revenue.
RAK Petroleum plc retains a small team of experienced operational, legal, commercial and financial professionals responsible for managing investments, screening new ventures, compliance with regulatory and listing requirements and shareholder relations. In addition, we support DNO ASA and Foxtrot International LDC through board positions and services agreements.
Executive Chairman of the Board of Directors
RAK Petroleum plc