Taqa Energy signs new deal with Cirrus

Abu Dhabi: The Abu Dhabi National Energy Company (Taqa) said yesterday its wholly-owned subsidiary, Taqa Energy B.V., had signed a farm-in agreement with Cirrus Energy Corporation with respect to three licences and one unit area in the Dutch North Sea.

Cirrus is a Canada-based oil and natural gas company, exclusively focused on international exploration and development opportunities in lower-risk environments.

"In this agreement, Taqa will acquire interests ranging from 15 per cent to 30 per cent in three blocks and one field. In return, Taqa will fund the well exploration costs with amounts ranging from 15-30 million euros [Dh80-Dh160 million]," Taqa said in a filing at the Abu Dhabi Securities Exchange (ADX), where it is listed.

The news, however, failed to lift Taqa's shares on a bearish ADX. Taqa's stock was down 4.56 per cent in afternoon trade yesterday at Dh2.30 a share.

Taqa is targeting a 49.1 per cent increase in its production capacity, aiming to produce 82,000 barrels per day (bpd) equivalent by the end of 2009, its chief executive officer said recently.

Raising output

Peter Barker-Homek said Taqa, which aims to become by 2012 a $60 billion company in terms of its assets, is going to undertake projects across its global oil producing assets to lift output. These include a carbon sequestration project in The Netherlands for enhanced oil recovery.

He also said the company will focus on its North Sea offshore asset where there is potential for a sizeable increase in output.

He added that from a current capacity of 55,000 bpd oil equivalent, the production capacity of Taqa would initially be increased to 62,000 bpd through enhanced oil recovery initiatives. A further 20,000 bpd production increase is expected by the end of 2009, said Barker-Homek.