Taqa to raise oil output by 49% through project in Netherlands

Abu Dhabi: The Abu Dhabi Energy Company (Taqa) is targeting a 49.1 per cent increase in its production capacity, aiming to produce 82,000 barrels per day (bpd) of oil equivalent by the end of next year, its CEO said late on Sunday.

Peter Barker-Homek said Taqa is going to undertake projects across its global oil producing assets to lift production.

These include a carbon sequestration project in the Netherlands for enhanced oil recovery.

As well, he said, the company will focus on its North Sea offshore asset where there is a potential for a sizeable increase in output.

"We have two explor-ation blocks in the Netherlands. We also want to grow our asset base in the North Sea which we want to be worth $20 billion by 2016 at the latest from $5 billion at present," Barker-Homek said.

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 technology.

Unaffected by meltdown

A further 20,000 bpd production increase is expected by the end of next year, said Barker-Homek.

Barker-Homek also said that Taqa is closely looking at the prospect of getting into liquefied natural gas (LNG) business.

Separately, he said Taqa did not have any exposure to the bankrupt US investment bank - Lehman Brothers.

"We had a small credit facility with them of $50 million which was not drawn upon," said Barker-Homek.

Taqa's shares rose 3.42 per cent on Monday on the Abu Dhabi Securities Exchange, closing at Dh2.37 a share.