Page 13 - MEOG Week 03 2023

MEOG NEWS IN BRIEF MEOG

POLICY projects had been defined for the first time The deal is opposed by Capricorn’s three
in two decades, adding that more than 4,000 biggest investors, who say that it undervalues
Exploration talks with 3 persons were engaged in the exploration Capricorn.
sector.
Investment manager Madison Avenue,
countries upstream oil and gas sector were combining Capricorn’s biggest shareholder, has already
He said specialized associations of
cast its vote against the board and plans to
The head of exploration at National Iranian knowledge and experience, adding: “Such vote against the NewMed merger, managing
Oil Company (NIOC) has said talks have been associations are scientifically important and partner Eli Samaha told Reuters.
held with three countries for implementation therefore they can help the Directorate of The timing of the shareholder votes means
of oil and gas exploration projects. Exploration materialize its objectives.” that any resulting shake up could leave a
“That has been done for improving Fakour said that monitoring modern new board bound by the earlier vote on the
interactions,” Mehdi Fakour said at a technologies and their application along with deal - a point that has come in for criticism
symposium with upstream oil and gas setting up communications channels between from Palliser and Legal & General Investment
associations. associations, knowledge-based companies and Management (LGIM).
Noting that amplified cooperation in universities were among approaches expected Most of the shareholders to have publicly
exploration was a major objective of NIOC’s by the NIOC Directorate of Exploration. opposed the deal with NewMed, the biggest
energy diplomacy, he said: “Currently Noting that absorbing elite within stakeholder in the huge Leviathan gas field in
11 major and 300 minor projects have associations was much easier than within the Mediterranean, are hedge funds.
been planned by the NIOC Directorate of state-owned companies, he said: “This issue In Monday’s unusually strongly worded
Exploration.” can be seen as great potential in setting up pre-announcement of its intention to vote
He referred to augmented budget technology and innovation network within against Capricorn’s leadership, long-term
allocation to oil and gas projects, Fakour associations.” investor LGIM said its vote was “an unusual
said: “In terms of budget allocation, we are SHANA step” based on grave concerns.
standing at a high level. For the first time, we “The decision to hold the company’s
have managed to achieve the second rank meeting (on the merger) before the
in drilling among NIOC subsidiaries and COMPANIES shareholder requisitioned meeting (on the
directorates.” board) appears to be a direct attempt to
He said that the budget allocated by L&G to vote against undermine due process,” LGIM said.
NIOC to the Directorate of Exploration’s “The process to date raises serious
drilling activities was more than that of Capricorn merger questions about the ongoing suitability
other companies. He added that the NIOC and fitness of the entire board ... to serve as
Directorate of Exploration came second Asset manager Legal & General plans to take directors of a listed company.”
to National Iranian South Oil Company the rare step of voting to oust energy group The asset manager added that its
(NISOC) in terms of drilling budget Capricorn’s senior leadership and halt its concerns touched on governance, process,
allocation. planned merger with NewMed, according to a future strategy, executive compensation,
“Among NIOC directorates, the company document seen by Reuters. environmental risks and valuation. It also said
Directorate of Exploration has received the Capricorn shareholders will vote on the Capricorn’s response to its concerns was to
most credit, thereby giving impetus to further NewMed deal on the morning of Feb. 1 before suggest that LGIM sells its stake.
exploration activities in the country,” he said. voting in the afternoon on activist investor A spokesperson for Capricorn, which
Fakour said significant exploration seismic Palliser’s proposal to overhaul the board. published a shareholder presentation on

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