State-controlled Abu Dhabi National Energy Co (TAQA) announced another purchase of mature North Sea oil assets yesterday in a move analysts said could increase its UK oil output by almost 20 per cent.
TAQA, 75 per cent-owned by the government of Abu Dhabi, said in a statement its unit TAQA Bratani agreed to buy Total’s entire 81 per cent stake in production licences for two blocks in the Otter oilfield.
Otter produces around 8,000 barrels per day (bpd) of oil, lies next to existing TAQA interests and is linked under the sea to the Eider Platform, operated by TAQA Bratani.
TAQA’s oil production so far this year has been running at a little over 35,000 bpd and the acquisition from Total should add in excess of 6,000 bpd, North Sea oil analysts said. TAQA gave no financial details.
The purchase is the latest in a series over the last two years of North Sea oil interests by TAQA, which has concentrated on building up assets in mature offshore fields that other, bigger oil companies have discarded.
Analysts say TAQA has some advantages over larger oil majors because it optimises output from older fields through new technology and will operate much smaller oil fields.