Oil operator Taqa said yesterday a restriction on tax relief in the North Sea contributed to a fall in profits last year.
Abu Dhabi’s state-owned energy firm said net profits were down 14% to £111.2million in 2012 despite turnover increasing by 14% to £4.8billion.
The company said that in addition to the one-off charge restricting tax relief on decommissioning expenditure in the UK North Sea, profits were also hit by lower North American gas prices.
Despite the fall in profits, Taqa said the UK was still one of its key regions worldwide.
It comes after the firm agreed an £818million deal to buy interests in several fields from BP in November, including operated stakes in Harding, Maclure and Devenick plus a non-operated share in the Brae area and associated pipelines.
Chief executive Carl Sheldon said: “Our oil and gas business has performed well, with a strategic acquisition in the UK North Sea securing the long-term future of what has historically been one of our most profitable geographies.”
Ian McRae, operations director at the company’s UK arm, Taqa Bratani, said the North Sea’s place as an important part of Taqa’s business had been confirmed in 2012.
Mr McRae added: “2012 saw the addition of a major second hub to our portfolio following the agreement to acquire BP’s central North Sea assets Harding, Morrone, Maclure and Devenick as well as their interests in the Brae assets.
“Having a hub in the central North Sea in addition to our existing northern North sea portfolio opens up further investment opportunities and ensures our long-term future in the UK North Sea.”
Taqa employs 375 people at its Westhill base, near Aberdeen, but supports more than 2,000 jobs in the area through its contractors.
The operator has 100million barrels of reserves in the UK North Sea and daily production is more than 40,000 barrels. These figures are expected to rise to 191million barrels and more than 60,000 barrels respectively when Taqa’s deal with BP completes.
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