Investment promised for UK fields
After agreeing the deal with Shell and ExxonMobil to buy UK Northern North Sea assets Abu Dhabi’s Taqa has pledged to invest in the fields and to prolong their production life.
Taqa Bratani sighed the sale and purchase agreement yesterday with Shell and Exxon Mobil to acquire the Tern, Eider, Cormorant North and South and Kestrel and Pelican fields in the UK Northern North Sea for an undisclosed sum.
And Peter Barker-Homek, chief executive of Taqa, which is a subsidiary of the Abu Dhabi National Oil company, pledged: “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.”
Aberdeen’s John Wood Group has been appointed as duty holder to manage the assets on behalf of Taqa, with responsibility for operations and maintenance at the fields.
“These fields are an excellent fit with our operational objectives and potentially can be significantly improved by our own expertise and that of our partners, Wood Group, who are widely recognised as a global market leader in the enhancement of oil and gas production in mature fields. This is further evidence of our long-term commitment to Europe and will build on our asset optimization successes in The Netherlands and UK to-date,” Taqa’s chief executive stated.
He said Taqa regarded itself as one of the next generation North Sea E&P companies which is prepared to invest in existing assets.
With the acquisition, Taqa adds average daily production of around 40,000 boe/d and boosts its European reserves base which currently stands at 38 m boe of proven and probable reserves, while its production is 23,000 boe/d.
Closure of the deal is expected to take place in the fourth quarter this year, subject to regulatory consents.