Bloomberg reported that Abu Dhabi National Energy Company plans to spend at least USD 600 million over the next 2 years doubling its North Sea oil output.

Mr Alex Salmond Scottish First Minister said that the oil, gas and utility company known as TAQA wants to increase North Sea production to 80,000 barrels a day from the current daily level of 40,000 barrels.

Mr Salmond said that “They definitely have their eye on acquisitions. TAQA will invest in new fields and they also want increasing oil flow from their existing fields.”

Mr Leo Koot executive of TAQA said that TAQA which was set up in 2005 has spent USD 1 billion on capital expenditure in the North Sea over the past 3 years. It operates 4 platforms and has stakes in other fields. It plans to invest at broadly the same level in the next 2 years as in 2010 and 2011.

Mr Salmond said that TAQA hasn’t stated publicly its future North Sea production targets. The Scottish government supports changes to the North Sea tax structure associated with recovering oil from smaller fields such as those operated by TAQA. Taxation falls under the remit of the UK government in London.

He said that we’ve agreed that we’ll facilitate approaches to the UK government to bring this about. We can’t afford to leave energy under the sea or under the ground.

Mr George Osborne UK Chancellor of the Exchequer increased North Sea oil taxes in his annual budget in March to raise an additional EUR 2 billion in revenue, prompting companies such as Statoil, Norway’s biggest energy producer to freeze development plans.

(Sourced from Bloomberg)