DSM Energy to be acquired by Taqa for Dh1.5b

An agreement has been arrived at by Abu Dhabi National Energy Co (Taqa) on the acquisition of DSM Energy, the energy unit of Netherlands-based Royal DSM NV, for
285 million euros (Dh1.5 billion), said Taqa on Wednesday.

It has appeared that 5,000 barrels of oil equivalent per day (boed) would be added by this acquisition, to Taqa's North Sea production of about 50,000 boed.

A petroleum company's oil and gas production is measured via the industry standard of Boed. As of now, nearly 50,000 boed is produced by Taqa's North Sea operations via its subsidiaries Taqa Bratani and Taqa Netherlands.

A spokesman for Taqa said via an email: "Sixty-eight per cent of the transaction value will be assigned towards DSM Energy's interests in midstream assets."

He further said that a 40% stake in Noordgastransport, one of the Netherlands' major natural gas transmission pipeline systems, would also be acquired by Taqa.

The deal, in addition to the stake in Noordgastransport BV, also gives Taqa non-operating interests in three pipelines and 20 oil and natural gas fields.

Though Taqa did not comment on its planned capital expenditures, saying the deal is yet to be completed; it did say that the acquisition will be financed through existing credit lines.