Taqa new North Sea operator

Abu Dhabi National Energy Company (Taqa) yesterday announced its British investment arm Taqa Bratani Limited took over the control of North Sea Brent System pipeline and facilities as the new operator from Shell UK Exploration and Production.

Shell has been operating and controlling the facilities since 1970s and now the control has gone to Taqa Bratani with effect from August 1, according to an official announcement made in UK.

"This is an excellent fit with Taqa's growing North Sea portfolio and underlines our commitment to being a major player among the energy producers for the UK.

"This is the latest step in our North Sea activity programme, which this year already has seen Taqa increase production from our operated assets, initiate drilling and near-field exploration," announced Leo Koot, Managing Director of Taqa Bratani.

"Operating the Brent System is a serious undertaking. Taqa has recruited experienced staff and installed first class IT and systems infrastructure to enable us to advise and liaise with our Brent System Partners."

The Brent System is a joint venture between the 21 companies, each owning a share in the system. It consists of a proportion of the processing systems and structure on the Taqa operated Cormorant Alpha platform as well as the 150km pipeline connecting Cormorant Alpha to the BP operated Sullom Voe Oil Terminal in the Shetland Islands. Taqa owns a 24 per cent share in the terminal.

Taqa Bratani's development programme for its operated assets consists of a capital expenditure commitment of £500 million (Dh3 billion) to be made over the next three years.

Brent became the benchmark North Sea crude oil, used for pricing around two thirds of the physical crude oil traded on the world's spot markets, but the oilfield has matured and production has fallen this year to 100,000 barrels per day (bpd).

To make the benchmark more liquid, three other North Sea crude oil grades are now also used to calculate the daily market price.

The North Sea benchmark is used in settling Brent crude oil futures traded on the Intercontinental Exchange (ICE). The Brent System is responsible for transporting around 100,000 bpd of oil from around 20 North Sea oilfields, accounting for about 37 per cent of the Sullom Voe Terminal input and around eight per cent of United Kingdom offshore oil production, Taqa said in a statement.

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