The Abu Dhabi National Energy Company PJSC (ADSM: TAQA) announced today that it has begun officially its management of newly acquired BP Netherlands gas exploration and production (E&P) assets, ideally positioning it in the heart of Europe’s burgeoning energy sector.
TAQA made public its intention to acquire BP Nederland Energie B.V. (BPNE) in late 2006, subject to certain conditions being met under a sale and purchase agreement. The sale is now complete, and TAQA – along with its joint venture partners – is now the majority shareholder and operator of the Dutch gas activities. BP Nederland Energie B.V. will continue as TAQA Energy B.V. TAQA’s CEO addressed a town hall meeting of employees and international media representatives today from the company’s new TAQA Energy headquarters located in the The Hague, Netherlands outlining the group’s intentions for the operation.
“The acquisition of these BP E&P assets, and the related creation of TAQA Energy in the Netherlands, is a critically strategic undertaking for TAQA, and we believe that the European Commission will view favourably our entry into the region’s energy sector,” said Peter Barker-Homek, Chief Executive Officer of Abu Dhabi National Energy Company.
“By assuming control of an existing operation with significant interests in the upstream, midstream, and downstream businesses ,” said Barker-Homek, “TAQA has positioned itself well at the center of the ‘Energy Roundabout’ of Europe, ideally located between Europe’s two main demand centers, the UK and Germany.”
Energy experts agree that the Netherlands plays an important role in the northwest European gas market, both as a large producer and as a gas transit country with indirect links to all the major European suppliers. Furthermore, the Dutch government is widely seen to be promoting the country as a “gas hub”.
The newly acquired BP E&P business is composed of onshore and off-shore production assets, including the Piek Gas Installatie (PGI) facility in Alkmaar. Crucially, the operation also consists of gas storage facilities at the Bergermeer field in the Netherlands, linking Dutch and British gas hubs and creating enormous growth opportunities for the entire operation.
TAQA has further ambitions to develop one of the largest and first offshore LNG Regas facilities utilizing the depleted field P15/P18 just off the port of Rotterdam. The company expects to be able to provide LNG Regas at a cost below EUR 0.3 per mmbtu or 1 ct/m3, making it the choice destination for LNG producers targeting the UK and European markets. TAQA has assumed BP's Dutch E&P business with its staff of 120 employees and long-term contractors. It operates assets both onshore and offshore in the Netherlands. The BP E&P business had net production of around 1.8 million cubic meters per day (62 million cubic feet a day) in 2005. TAQA carries an Aa3 and A+ credit rating and was recently presented Emerging Market Deal of the Year and Middle East Corporate Bond of the Year 2006 awards by EuroWeek.
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