Q3 roundup for RAK Petroleum and Taqa

RAK_1Taqa and Rak Petroleum have announced record net profits for the third-quarter.

RAK Petroleum, which currently owns a 30 per cent stake in DNO International announced a record net profit of US$25mn for the third quarter after earnings were boosted by DNO's earnings.

Bijan Mossavar-Rahmani, Chairman of the Board of Directors and Chief Executive Officer of RAK Petroleum said DNO's merger was on track to close in early 2012 with integration planning already underway. After the successful conclusion of merger, RAK Petroleum will up its stake to 42.8 per cent stake in DNO.

Earnings boosted by DNO

The impact of RAK's association with DNO can be seen in the company's profits which on a stand-alone basis, recorded an operating profit of US$9mn.

"RAK Petroleum shareholders can be pleased that DNO International is contributing its second profitable quarter to our results and that its more positive share price reflects, in part, the market's favorable outlook for the merger," commented Mossavar-Rahmani.

RAK operated fields offshore the Sultanate of Oman produced a daily average of 8,144 barrels of oil and condensate in addition to 35.4 million cubic feet of gas and 620 barrels of LPG during the quarter.

Operations

Turning to operations, Mr Mossavar-Rahmani noted that RAK had commenced deepening of the Saleh-5 well offshore Ras Al Khaimah in July as a first step toward that field's redevelopment.

Following drilling difficulties, the company temporarily suspended the well to meet scheduled commitments at the West Bukha and Bukha fields of Block 8, Oman in which LG International is a 50 per cent partner.

The rig is being redeployed and is expected to return to Saleh at the end of 2012 following a three-well drilling program.

At Block 31 onshore Oman, the Wadi Jiffra well was spudded in August and reached total depth of 3,250 metres with positive gas indications during drilling. The well has been temporarily suspended pending permit for use of oil-based mud and to evaluate a sidetrack to access updip potential.

Taqa net profit doubles

Abu Dhabi National Energy Co (Taqa) reported that its third-quarter net profit more than doubled compared to last year as higher crude oil prices and increased production helped increased earnings.

Taqa third quarter net profit hit US$146.2mn compared with US$60mn a year ago, the company said in a statement. Its oil and gas revenues rose 68 per cent to US$740mn.

Demand for fuel and power

"Global demand for fuel and power continues to grow, with Middle Eastern markets, in particular, demonstrating attractive supply/demand dynamics," chief executive Carl Sheldon said in the statement.

The company is a major shareholder in the Dutch Bergermeer field, Europe's biggest gas storage facility with capacity of 4.1 billion cubic metres, and is also involved in an offshore gas production project in the Dutch North Sea.

"The recently announced WesternZagros deal in the Kurdish region of Iraq is an example of us growing our footprint in the IMENA region and entering new countries with attractive market dynamics, in line with our stated strategy," added Sheldon.

It already runs power plants in Morocco, Saudi Arabia, Ghana, India, the Caribbean and the US, and now wants to expand its operations into other MENA markets.

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