Aug. 27 (UPI) -- Norwegian energy company DNO lashed out Monday at regional counterpart Faroe Petroleum for brushing off a request for more board representation.
DNO in early August called for a general meeting at Faroe to consider placing Chairman Bijan Mossavar-Rahmani and Managing Director Bjørn Dale on the board of directors at Faroe Petroleum. As competitors in Norway, Faroe said the move would represent a conflict of interest.
DNO holds a 28.23 percent stake in Faroe. On Monday, it said it was withdrawing the request for the general meeting. In its statement, the company noted "with deep disappointment Faroe Petroleum's repeated peremptory and disdainful attitude to such representation for, and therefore greater engagement with, its largest shareholder."
DNO in April acquired another 8.5 million shares in Faroe for $14.8 million, which represented 2.3 percent of the outstanding shares in Faroe at the time.
In mid-August, Faroe said it suspected DNO's chairman was trying to take over the company without making an explicit offer to all of its shareholders. DNO's statement on Monday said Faroe was being "increasingly hostile."
Faroe had no public response to DNO's statement on Monday.
DNO focuses heavily on operations in the Kurdish north of Iraq. In explaining its move on Faroe, DNO said it was supporting the company's growth strategy that's focused on the North Sea.
Faroe reported production averaged 12,402 barrels of oil equivalent per day during the first half of the year, at the low end of its guidance range. Graham Stewart, the company's chief executive, said it was a strong player in Norway with an estimated 42 million barrels of oil equivalent in its portfolio.
Pointing to a high level of success for its assets in the Kurdish north of Iraq, DNO paid out its first dividend in 13 years in mid-August. Second-half revenue of $289 million represented an 83 percent increase from the same period last year.