RAK Petroleum’s Middle East and North Africa branch will merge into a subsidiary of DNO in exchange for DNO shares.

Helge Eide,the Norwegian firm’sManaging Director said: “The enlarged DNO will be a more robust company with higher production and stable cash flow from a more diversified portfolio.”

A heads of agreement was signed between the oil and gas firms ahead of listing the DNO company on the London Stock Exchange.

DNO is already listed in Norway and was the first Norwegian oil company to be listed on the Oslo Stock Exchange in 1972.