The Abu Dhabi National Energy Company PJSC (Taqa) has announced that its wholly owned subsidiary, Taqa Energy BV, has reached an agreement with Netherlands-based life sciences and materials sciences company Royal DSM NV to purchase 100 per cent of the share capital of its wholly owned subsidiary DSM Energie Holding BV (DSM Energy). 

In another announcement the UAE company said Taqa Energy BV had acquired a 15 per cent interest in North Sea assets from the L11b Group, comprising Chevron Exploration and Production Netherlands BV, DSM Energie BV and EBN, for an undisclosed amount. 
The deal is part of a transaction between the L11b Group and the L8-D Field Group, comprising Taqa Energy, Cirrus Energy Nederland BV, DSM Energie BV, Energy06 Investments BV, EWE AG and EBN.

15pc interest
The acquisition consists of a 15 per cent interest in the L8-D Unit, L11b-A production platform, which services the L8-D gas field, and a pipeline connection to the Noordgastransport (NGT) pipeline.  The remaining 85 per cent interest was acquired by the other members of the L8-D Field Group.
Following the acquisition, the L8-D Field Group has appointed Taqa Energy as operator to the L11b-A production platform with effect from 1 August 2009.  Cirrus Energy Nederland BV is the L11b licence operator.  First production is expected to begin before the end of the year.
The intended acquisition of DSM Energie Holding is expected to close in Q3 2009, subject to regulatory approvals and notifications.
Under the terms of the transaction, Taqa Energy will acquire non-operated interests in the pipeline company Noordgastransport BV (NGT), three other pipelines and 20 producing oil and gas fields in the Dutch North Sea.  Further, the assets will provide Taqa Energy with an additional daily production of approximately 5,000 barrels of oil equivalent (boe) (2008 average) of which 85 per cent is natural gas.  The enterprise value of the transaction is 285 million euros ($404 million).  Most of the value is assigned to interests in the midstream assets.

Taqa strategy
Commenting on the announcement, Paul van Gelder, Taqa Energy managing director, stated: “Building on our European operations forms a key pillar of Taqa’s strategy to create a diversified, global energy company.  The transaction we have announced will increase our production and enhance our footprint in the North Sea, while generating low risk, stable cash flows.  In addition, the interest in the NGT pipeline compliments our existing portfolio with Bergermeer Gas Storage in development and will help establish Taqa as a key pan-European midstream player.”
DSM Energy participates as non-operator in the exploration and production of oil and gas on the Dutch Continental Shelf with stakes of up to 25 per cent.  The company is also involved in the transportation of oil and gas through its ownership of pipelines.