Abu Dhabi's TAQA to buy UK Central North Sea assets from BP

Abu Dhabi National Energy Co. (TAQA) agreed to buy a package of UK Central North Sea oil and gas fields from BP PLC for $1.06 billion along with anticipated future payments that BP said could exceed $250 million over 3 years.

TAQA agreed to buy BP’s operated interests in Maclure, Harding, and Devenick fields and its nonoperated interest in Brae complex and Braemar field. The future payments depend on oil prices and production. Marathon Oil UK Ltd. operates the Brae complex (OGJ, Oct. 15, 2012, Newsletter).

Subject to third-party and regulatory approvals, BP and TAQA expect the transaction will close during second-quarter 2013. TAQA said the acquisition will provide 21,000 boe/d of production in 2013 and 91 million boe of reserves.

“This investment is a great strategic fit for TAQA, ensuring growth for our UK business and establishes Taqa as a leading operator in the UK North Sea,” said TAQA Chief Executive Carl Sheldon.

BP is divesting nonessential assets, and some of the proceeds will help BP pay cleanup costs and liabilities associated with the April 2010 Macondo deepwater well blowout and oil spill in the Gulf of Mexico off Louisiana.

“This transaction is in line with BP’s strategy to focus on a smaller number of higher-value assets with long-term growth potential,” said BP Chief Executive Bob Dudley.

Including the TAQA deal, BP has sold about $37 billion in assets since early 2010, and its target is to sell a total of $38 billion during 2010-13.

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