Abu Dhabi National Energy Company (Taqa) has acquired DSM Energy of the Netherlands for Dh1.5 billion to help boost its North Sea production.

The company announced the acquisition yesterday in a disclosure to Abu Dhabi Securities Exchange (ADX).

The acquisition comes following Taqa subsidiary, Taqa Energy, concluding an agreement with life and materials sciences company Royal DSM to purchase 100 per cent shares of its wholly-owned subsidiary DSM Energie Holding (DSM Energy).

According to Taqa, the acquisition is expected to close within the third quarter, subject to regulatory approvals and notifications, and most of the value is assigned in midstream assets.

Under the agreement, Taqa Energy will acquire non-operated interests in the pipeline company Noordgastransport (NGT), their three other pipelines and 20 producing oil and gas fields in the Dutch North Sea. The assets will also provide Taqa with an additional daily production of 5,000 barrels of oil equivalent, of which 85 per cent is natural gas.

Taqa, known for its aggressive international acquisitions of assets in the energy sector, has already announced a spending of $1.5bn (Dh5.51bn) in the next six to nine months that includes investments in Iraq and on North Sea production. The company intends to boost oil output from its North Sea fields over three years to 60,000 barrels per day from about 40,000 bpd.

About investments in Iraq, Peter Barker-Homek, Chief Executive Officer of Taqa, said there will be an initial investment of more than $200m and later the company may pursue opportunities in the country's gas and pipelines sectors.

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