Dragon Oil has agreed to become a full subsidiary of Dubai's national oil company, its majority shareholder, in a deal worth $1.14bn (£693m).

Advisers to the Dublin and London-listed oil and gas producer, which operates in the Caspian Sea, negotiated for five months with Emirates National Oil Company (Enoc), which owns 52 per cent of Dragon shares and has been expected for years to table a take-out bid.