Taqa to consider sale of oil and gas assets after strategic review

Drilling underway at the Bergermeer gas storage - an underground natural gas storage in the Alkmaar region north of Amsterdam in the Netherlands. Taqa has upstream assets in the UK North Sea, the Netherlands, Canada and the Kurdistan Region of Iraq. Courtesy: TaqaShow less

Abu Dhabi National Energy Company, also known as Taqa, is considering a possible sale of its oil and gas assets after a strategic review.

"The review will assess strategic options for the oil and gas division and the optimal course for its future development while taking into consideration the evolution of the global energy industry as it transitions towards a cleaner and more sustainable future," the company said on Wednesday.

"All options will be considered, including the sale of some or all the assets, or the retention and development of the assets within the Taqa Group," a statement added.

In April, Taqa said it planned to invest Dh40 billion in infrastructure development. The company plans to add about 27 gigawatts of power capacity by 2030 and expand its renewables portfolio.

Taqa has upstream and midstream assets in the UK North Sea, the Netherlands, Canada and the Kurdish region of Iraq.

The company's total portfolio in the first half of the year included more than 124,000 barrels of oil equivalent per day, which generated revenue of Dh3.4 billion ($937 million), with a net income of $145m.

The announcement follows a shift among Abu Dhabi organisations towards cleaner energy.

Taqa, along with partners, is developing one of the world's largest solar plants at Al Dhafra with a total capacity of 2 gigawatts, as part of the UAE's efforts to increase clean energy capacity.

The company completed a merger with Abu Dhabi Power Corporation in July last year. The deal, effectively a reverse takeover, resulted in ADPC transferring assets worth Dh120bn to Taqa in return for shares, giving it a 98.6 per cent stake in the company.

The merged entity, which has assets worth Dh200bn, said it still expects to complete a public offering to diversify its share base, subject to market conditions and shareholder approval.

Taqa has also allowed foreign investors to own up to 49 per cent of its issued shares.