Abu Dhabi's Taqa Operates Brent System.

The UK arm of the Abu Dhabi National Energy Co., Taqa Bratani Ltd, on Aug. 1 took over as operator of the North Sea Brent system's pipeline and facilities. It replaced Shell UK Exploration and Production, which had held the position since the mid-1970s.

Brent became the benchmark North Sea crude oil, used for pricing around two thirds of the physical crude oil traded on the world's spot markets, but the oilfield has matured and production has dwindled this year to just over 100,000 b/d. Brent is used in settling paper Brent traded on the Intercontinental Exchange (ICE).

A company note on Aug. 2 quoted Taqa Managing Director Leo Koot as saying the new role was an excellent fit with Taqa's growing North Sea portfolio and underlined the company's commitment to being a major player among the energy producers in the British North Sea, adding: "This is the latest step in our North Sea activity programme which this year already has seen Taqa increase production from our operated assets, initiate drilling and near-field exploration".

The Brent system is owned by 21 firms. It is part of the processing systems and structure on the Cormorant Alpha platform, operated by Taqa, as well as a 150-km pipeline tying Cormorant Alpha to the BP-operated Sullom Voe Oil Terminal in the Shetland Islands. Taqa owns 24% of that terminal. The Brent System is responsible for transporting around 100,000 b/d of crude oil from about 20 oilfields. Koot on Aug. 6 said Taqa's UK arm had already amassed more than $2bn in North Sea assets since its creation in 2005 and planned further growth, hoping it would raise its UK North Sea output steadily from about 45,000 b/doe, split roughly into 80% crude oil and 20% gas, adding: "A realistic target for us, we would hope by 2012, would bebetween 50,000 and 60,000 b/doe. There are a few northern North Sea exploration licences around. We are looking to take those on"

Taqa on July 29 said it had agreed to buy DSM Energy, a unit of Dutch-based Royal DSM NV for 285m. This was to add 5,000 b/doe to Taqa's North Sea production. It said 68% of the transaction's value will be assigned towards DSM Energy's interests in midstream assets. Taqa was to buy 40% in Noordgastransport BV, one of the Netherlands' major gas pipelines. With the stake in Noordgastransport, the deal was to Taqa non-operating interests in three pipelines and 20 oil and gas fields. The deal was to be finalised by end-September. Taqa planned to boost its North Sea production to 80,000-100,000 b/doe in two to three years. Royal DSM said the sale will help the company focus more on its life and material science operations.

Taqa Energy BV on Aug. 4 said it had bought 15% in North Sea assets from the L11b Group, made up of Chevron E&P Netherlands BV, DSM Energie BV and EBN. The deal was 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. The deal consisted of 15% in the L8-D Unit, L11b-A production platform servicing the L8-D gas field, and a pipeline link to the Noordgastransport (NGT) pipeline. The remaining 85% was acquired by the other members of the L8-D Field Group. After the acquisition, the L8-D Field Group appointed Taqa Energy as operator of the L11b-A production platform from Aug. 1. Cirrus Energy is the L11b licence operator. The platform's first output is expected before end-2009.

Taqa North in Canada in July 2009 bought 10,000 hectares near Fort Nelson, in the province's remote north-eastern corner. The land is estimated to contain more than 1.2 TCF of recoverable shale gas. It said Horn River could serve as a beachhead for the company as it looked to other North American shale plays. Extracting shale gas requires significant technological expertise, which Taqa is hoping to acquire.

Nigerian Exports Vulnerable To Violence: NNPC, as well as the foreign and local oil producers, have been sold out of crude oil since late 2003. Shell, Chevron, Total, Agip and other operators in the Niger Delta, a highly volatile area, are worried that violence may recur later in 2009.

The Nigerian Association of Petroleum Explorationists has been warning since 2005 that violence in the Niger Delta was increasing operating costs in onshore and shallow-water fields from a little over $2/b to more than $8.5/b. The crisis in the Niger Delta has meant that drilling operators, suppliers and other contractors have doubled their charges in the onshore and shallow waters. Companies devote almost 10% of their operating costs to the oil communities" in that region.

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