One of Scotland's most successful home-grown oil-exploration companies is being merged and its headquarters moved from Edinburgh to London.
Capricorn Energy, formerly known as Cairn Energy, is becoming part of Tullow Oil.
Cairn was founded in 1981 by ex-rugby international Sir Bill Gammell.
It was successful in finding a large oil field in India, but not with controversial drilling near Greenland. It has since withdrawn from both countries.
An agreed merger with Tullow Oil will see the joint company, listed on the London Stock Exchange, focus on their current assets in Africa and new opportunities for drilling on the continent.
Tullow has operations in Gabon, Ivory Coast and Kenya.
Capricorn was successful drilling for gas in Senegal and sold its stake there, with its focus now on Mauritania and onshore in Egypt.
Its portfolio also includes prospects in the UK North Sea, Israel and Mexico.
The BBC reports that the combined company, through an all-share deal, is being valued at £657million.
It will have production of an estimated 100,000 barrels of oil per day, and identified reserves of 343million barrels, mostly oil.
Both the chairman and chief executive roles are being taken by Tullow Oil bosses. The chief financial officer will be from Capricorn.
Capricorn's chief executive, Simon Thompson, steps down after 11 years, and has a temporary role of steering the merger process, which is expected to cost around £40million.
Meanwhile, KCA Deutag has announced it is acquiring the onshore drilling division of Saipem
The Aberdeen-based buyer is paying £440million while Saipem gains a 10% stake in KCA Deutag.
The Italian engineering company wants to focus on offshore drilling.
The Saipem unit operates in 13 countries with about 4,000 people and with 83 land rigs. The Scottish firm has 110 rigs and more than 8,000 people operating in 20 countries.
Markets
Brent crude futures have been slipping back after climbing to nearly $125 a barrel this week.
Earlier today, they were down 2.08% at $113.97 a barrel.
Prices have slumped following a report of reassurances from Saudi Arabia over production. A meeting of oil-producing countries later today is expected to pave the way for output increases.
The fall in oil prices gathered pace after it was reported that Saudi Arabia may be prepared to raise oil production in the event of a sharp drop in Russia's output.
The UK's top share index, the FTSE 100, had a disappointing end to its shortened trading week on Wednesday, closing down 74 points at 7,532.
The London Stock Exchange is closed today and tomorrow, but Asian share markets fell this morning on widespread investor worries over high inflation and the recession threat.