These irregularities involve possible improper conduct between certain former senior managers in the Company’s Marketing and Contracts Departments. The Internal Audit Department and KPMG (Dubai) have been engaged to assist in this in-depth assessment.
The Board is investigating these irregularities and is undertaking a thorough review of all Company procurement procedures. The Board is taking appropriate legal advice on all matters associated with the investigation. The relevant authorities have been informed or are in the process of being informed of the investigation.
Final results of the investigation and any resulting actions may ultimately take some time to complete. However, the Board expects to be in a position to update shareholders on progress being made in the investigation before the end of March.
The announcement of Preliminary Results for the year ended 31 December 2008 was due to be published on 4 March 2009. However, as a result of the identification of these alleged irregularities, the Board has decided to delay the publication of these results until it has had the opportunity to consider the initial results of the investigation and is in a position to determine the impact, if any, the investigation will have on the Company’s financial position.
Dr. Abdul Jaleel Al Khalifa, Chief Executive Officer commented, “This matter is completely unacceptable. Having identified the possibility of these irregularities, the Board is moving swiftly to investigate the possible irregularities and will take actions to ensure that purchasing procedures are operating properly and that appropriate actions are taken.”
“An initial review suggests that the matter will not have a material impact on the financial position of the Company. Dragon Oil remains committed to executing its strategy of developing its oil and gas production activities and field infrastructure and to diversifying its asset portfolio,” Al Khalifa added.
Thursday, February 26- 2009 @ 15:49 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.