The Abu Dhabi National Energy Company PJSC (TAQA) says that its wholly owned subsidiary, TAQA Energy B.V. (TAQA Energy), has reached an agreement with Netherlands based Life Sciences and Materials Sciences company Royal DSM N.V., to purchase 100% of the share capital of its wholly owned subsidiary DSM Energie Holding B.V. (DSM Energy). The intended acquisition 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 B.V. (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% is natural gas. The enterprise value of the transaction is EUR 285 million (USD 404 million). Most of the value is assigned to interests in the midstream assets.

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 today 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."

Tags: The Abu Dhabi National Energy Company PJSC (TAQA)