Cairn Energy's emergence as a potential suitor for Dong Energy's North Sea assets makes sense, according to an analyst who covers the UK independent -- provided it issues stock to make the purchase. "It currently makes sense to use paper to buy assets as the market seems to be often paying more for upstream assets than the industry," GMP First Energy analyst Stephane Foucaud told International Oil Daily. Denmark's Dong announced in November that it planned to get out of its oil and gas business so that it can focus on its offshore wind activities. A price tag of some $2 billion has been mooted for its upstream assets.
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