Dubai: Abu Dhabi National Energy Company PJSC (TAQA) has agreed to buy assets worth over USD 1 billion from BP oil and gas in the UK North Sea.
The investment secures thousands of jobs that TAQA supports in the North Sea, and reinforces the status of TAQA, a company based in Abu Dhabi, as the leading UAE investor in the UK, according to an official release.
It follows a constructive dialogue between the oil and gas industry and the UK Treasury, which resulted in changes to the tax treatment of North Sea assets.
Welcoming the announcement, Prime Minister David Cameron said: "I'm delighted that following my recent visit to Abu Dhabi to spearhead greater commercial ties, TAQA have decided to invest in their North Sea operations. This is a vote of confidence in the UK economy and once again, highlights the North Sea's position as a global energy hub.
"We're committed to making Britain the investment destination of choice and today's announcement shows how recent changes to the North Sea tax regime are helping to create and sustain thousands of jobs in Scotland and across the rest of the UK, ensuring we thrive in the global race".
Hamad Al Hurr Al Suwaidi, Chairman of TAQA, Chairman of Abu Dhabi Department of Finance and Member of the Executive Council of Abu Dhabi Emirate said: "We are pleased to have this opportunity to continue investing in our UK business.
"This investment shows our commitment to the future of the North Sea. It is underpinned by the UK government's commitment to long term fiscal stability."
Carl Sheldon, Chief Executive Officer of TAQA, said this investment is a great strategic fit for TAQA, ensuring growth for their UK business and establishes TAQA as a leading operator in the UK North Sea.
The UK Chancellor of the Exchequer, George Osborne, said oil and gas is one of the UK’s greatest industrial success stories, supporting a third of a million jobs.
The acquisition consists of interests in the Harding (70 percent), Maclure (37.03 percent), and Devenick (88.7 percent) fields in the Central North Sea.
TAQA will also increase its non-operated interests in the Brae area and associated transport infrastructure including the SAGE system, Forties-Brae and Forties-Braemar pipelines.
On completion, the acquisition is expected to increase TAQA's net production by approximately 21,000 barrels of oil equivalent per day (boe/d), and will add a second major development hub to TAQA's UK North Sea business, which is currently centered around the Northern sector.
Leo Koot, Managing Director of TAQA's UK operations, said this transaction will provide them with new exploration and development opportunities in the central sector of the UK North Sea.
First Published: Thursday, November 29, 2012, 15:26