Dragon Oil is moving its technical, financial and administrative functions from Dublin to Dubai following the acquisition of 69.4 per cent of its share capital by the Maktoum family, who are the rulers of the Arab state.

Dr Oliver Waldron, the deputy chairman of Dragon, said the move, expected to be completed by June 30th, was being made for "reasons of convenience". Dubai was two hours' flying time from Dragon's primary asset and operations in Turkmenistan and was a big international trading centre, he said.

"It is really a question of reducing the overheads and saving money and this difficulty remains for all producers," he said.