Taqa on the prowl to buy more North Sea fields

Dubai : Abu Dhabi National Energy Company, the power and oil producer known as Taqa, is looking for more acquisitions to boost crude supplies after paying $631 million (Dh2.31 billion) for North Sea fields.

"We're interested in acquiring more assets with the idea to develop the area around those fields and develop them as hubs," Paul van Gelder, managing director of Taqa's European businesses, said on Tuesday. He declined to comment on potential targets.

Taqa completed the purchase of deposits from Royal Dutch Shell Plc's UK unit and ExxonMobil Corporation's Esso Exploration and Production UK Ltd., Taqa said in a statement yesterday.

The largest international oil producers are selling smaller, ageing fields as output wanes to free up resources for bigger finds.

Companies such as Taqa are relying on new technology to extend the life of deposits discarded by the majors.

Taqa bought the Tern, Eider, Cormorant North and South, Kestrel and Pelican fields in the North Sea and will be sole operator of the deposits.

Taqa also bought a minority stake in a field operated by Dana Petroleum Plc as well as transport systems, it said.

"The financial commitment we are making today will extend the productive life of these fields and, when combined with our existing UK and Dutch North Sea base, brings us one step closer to our strategy of building a diverse global portfolio of energy businesses," chief executive Peter Barker-Homek said.

Investment plan

Taqa aims to spend $740 million (Dh2.6 billion) developing the assets over the next three years, van Gelder said.

The newly acquired fields are set to boost output from Taqa's UK and Dutch North Sea fields to about 45,000 barrels of oil and daily oil equivalents to 40,000 barrels a day.