Abu Dhabi National Energy Company (Taqa) said yesterday it had bought six offshore oilfields in the North Sea as the company pushed ahead with an aggressive investment drive to become one of the world's largest energy firms.
Taqa Bratani, a wholly owned subsidiary of Taqa, signed a sale and purchase agreement with Shell UK and Esso Exploration and Production UK to add nearly 40,000 barrels of oil equivalent (boe) to its existing energy reserves, Taqa said in a statement published through Abu Dhabi Securities Exchange.
"The agreement is to purchase the equity pertaining to operating licences for six offshore fields and two non-operated sub-sea tie-backs situated in the Northern North Sea," the government-controlled company said.
It said the sale includes all equity, associated infrastructure and production licenses relating to the two companies' interest in Tern, Eider, Cormorant North, south Cormorant, Kestrel and Pelican fields and related sub-sea satellite fields.
"The fields' average daily production in the region of 40,000 boe represents a significant increase to Taqa's existing European footprint," it said without specifying the deal value.
Taqa's combined European upstream operations had proven and probable reserves of nearly 38 mboe as at March 31, an average production of around 2.3 mboe/d. The statement said that conditional on the closing of the transaction, Taqa has engaged John Wood Group, a major international energy services company, as operating and maintenance contractor and duty holder.
It noted that the transaction remains subject to regulatory approvals and third party consents.
Closing of the deal is expected to occur within the fourth quarter, it added.
"The announcement brings us one step closer to our stated strategy of building a global energy company with an equal distribution of assets in North America, Europe and the Middle East," Taqa Chief Executive Officer, Peter Barker-Homek, said. "We believe that the North Sea offers significant potential for companies like Taqa and we will be making a significant investment over the coming years to extend the productive life and commercial viability of these assets."