Dragon Oil has agreed to become a full subsidiary of Emirates National Oil Company (Enoc), Dubai’s national oil company, its majority shareholder, in a deal worth £1.14bn.

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