TAQA buys BP assets in North Sea for US$1.1 billion

BP-north sea

The Abu Dhabi National Energy Company (TAQA) has bought a number of BP assets oilfields in the North Sea for more than US$1.1 billion

BP said in a statement that the sale would generate future payments that, dependent on oil price and production, would be expected to exceed US$250mn.

The purchase of the BP assets has increased Taqa’s worldwide crude production by 21,000 bpd to more than 60,000 bpd.

“This investment shows our commitment to the future of the North Sea. It is underpinned by the UK government’s commitment to long-term fiscal stability,” said Hamad Al Hurr Al Suwaidi, the chairman of Taqa.

BP is selling to the state-controlled power and oil company its interests in the Maclure, Harding and Devenick fields, which it currently operates, and minority interests in the Brae and Braemar fields.

BP chief executive Bob Dudley in the statement, "This transaction is in line with BP's strategy to focus on a smaller number of higher-value assets with long-term growth potential.”

The Abu Dhabi company is also buying into pipeline infrastructure and the deal will be completed by the end of Q2 2013.

Taqa already holds substantial assets in the North Sea, where it operates under its Taqa Bratani subsidiary.

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