Dublin and London-listed oil producer Dragon Oil has abandoned its takeover bid for rival Petroceltic due to weak market conditions.

In October, Dragon Oil announced it was in discussions regarding a “possible offer” for Irish listed company Petroceltic.

The oil producer, which is backed by Dubai’s state oil company and produces in Turkmenistan, said that the offer was of the order of 230 pence sterling per share in cash, or £492 million (€627 million) in total.

“Dragon Oil now confirms that, in the light of prevailing market conditions, it no longer intends to make an offer for Petroceltic,” the company said in a statement.