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Scottish vote for independence may harm UAE’s TAQA

Scottish vote for independence may harm UAE’s TAQA
TAQA
TAQA
1.50% 3.38 0.05
Scotland is set to vote for its independence from the United Kingdom this Thursday, putting the UAE’s Abu Dhabi National Energy Company (TAQA), which operates five oil and gas production platforms, at a risk of experiencing hurdles in its operations as well as taxation problems in the country.

The upcoming referendum vote has prompted investors to sell shares for Scottish companies and to worry about the implications of the potential Scotland split-off, reported CNBC.

"If you have investments in the UK, you should be very much concerned,” CNBC quoted Deutsche Bank macro strategist Oliver Harvey as saying, adding that “A 'yes' vote has big implications for UK growth and big implications for investments. And if you have assets in Scotland, all of the sudden they're not under the same tax or regulatory regime."

This split could require setting up of a new regulatory and taxation regime in Scotland, oil experts and executives have said, highlighting that such a step could be disruptive for the industry.

TAQA operates in Scotland through Cormorant Alpha, Eider, North Cormorant, Tern Alpha and Harding. Combined, these five platforms produce around 61,500 barrels of oil equivalent per day during H1-14.

According to The National, Taqa also operates the Brent pipeline, which links the Cormorant Alpha platform to the BP-operated Sullom Voe Terminal and carries nearly 90,000 barrels per day of oil, covering nearly 10% of the UK’s total oil production.

It is worth noting that TAQA has declined to comment on the potential impacts of the vote. However, it has referred inquiries to UK Oil & Gas and the industry trade authority, The National reported, adding that the UK government body had emphasized the need for cooperation between Scotland and the central government in London on regulation and taxation issues.



By:  Nada Adel Sobhi