LONDON/ABU DHABI — UAE energy giant TAQA's billion dollar vote of confidence in Scottish oil and gas has been further strengthened by a new report which says some $70 billion of investment in the sector is expected by 2016. TAQA's announcement it was to buy BP assets in the North Sea worth over $1 billion not only secures thousands of jobs, but it also reinforces the Abu Dhabi-based company's status as the leading UAE investor in the UK. The new report, published by Scottish Enterprise shows that prospects for the sector remain strong over the next five years, with a number of major field developments already under way or planned. It highlights that over the period to 2016, a total of $70 billion in capital is expected to be invested and identifies 86 new fields currently under development, or on which work could begin on before 2016. These include the $4 billion development of the Laggan and Tormore gas/condensation fields in the West of Shetland area. In addition, major new investments are currently under way on 12 existing fields, such as Forties and Schiehallion. Scottish Government Energy Minister Fergus Ewing, on a visit to Scottish Enterprise's offices in Aberdeen, said “the Scottish Oil and Gas strategy, developed by industry, the Scottish Government and Scottish Enterprise, lays out a plan to help the industry go from strength to strength, and rising capital investment – reaching $13.6 billion in 2011 and expected to rise to $18.5 billion in 2012 – demonstrates the confidence investors and the industry have in Scotland.” “With more than half of the value of the North Sea's oil and gas reserves yet to be extracted, up to 24 billion recoverable barrels with a potential wholesale value of $2.4 trillion, I am sure the oil and gas sector will remain an enormous economic resource for decades to come. — SG
