TAQA pays US$404m for Dutch oil company DSM Energy
Abu Dhabi energy giant continues 2009 spending spree with acquisition
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The Abu Dhabi National Energy Company (TAQA) has announced that it has acquired DSM Energie Holdings (DSM Energy) of the Netherlands for US$404 million.
Under the terms of the deal TAQA subsidiary, TAQA Energy, will acquire non-operated interests in the pipeline company Noordgastransport (NGT), three other pipelines and 20 oil and gas fields in the Dutch North Sea.
The assets will provide TAQA with an additional daily production of approximately 5,000 barrels of oil equivalent (boe) of which 85% is natural gas.
"Building on our European operations forms a key pillar of TAQA's strategy to create a diversified, global energy company,” Paul van Gelder, MD of TAQA Energy said.
“The transaction 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," he added.
DSM Energy is a subsidiary of Dutch company Royal DSM and participates as non-operator in the exploration and production of oil and gas on the Dutch Continental Shelf with stakes of up to 25%.
The company is also involved in the transportation of oil and gas through its ownership of pipelines.