North Sea operator Taqa took a big hit on US production to post a £416million loss for 2013 – despite seeing output from its UK assets rise.
The Abu Dhabi-owned energy group saw production in the North Sea rise 12% year on year to 47,000 barrels despite suffering a lengthy shut-in at Cormorant Alpha.
But an impairment charge of more than £528million, incurred largely through the fall of gas prices from North America, saw the company post losses compared to last year’s £107million profit.
The Emirati group, which bought the Harding, Maclure and Devenick fields fields from BP in a $1billion deal in 2012, said the acquisitions had been performing well, with fourth quarter production at a record 68,400 barrels of oil equivalent per day.
The company said it expected first oil from the Morrone field in the North Sea to be produced later this year, while output has now begun at the 30million barrel Cormorant East field.
But increasing costs in the North Sea saw operating expenses rise to more than £825million, and revisions to reserve levels and production shortfalls in the USA added up to a loss.
Despite the reverse in profits, outgoing chief executive Carl Sheldon – who steps down next month – took heart from the record production levels from the firm.
“TAQA has grown into Abu Dhabi’s leading international operator of strategic national energy infrastructure,” he said.
“We achieved record levels of oil and gas production, while underlying revenues from our power and water business rose strongly. The company is well positioned to take advantage of the unique opportunities ahead.”
Recommended for you
