Abu Dhabi National Energy Co. (TAQA) might sell some of its oil and gas interests in North America to raise capital for its core business, its COO told Reuters on April 19.
The loss-making company, 75%-owned by the Abu Dhabi government, has been hit by low oil prices.
“It is possible we may look to dispose of some oil and gas properties in the U.S and ... Canada,” Saeed Hamad al Dhaheri said, without naming specific assets but excluding its operations in Central Alberta.
TAQA’s North American oil and gas business is based in Calgary with some of its properties in its South Area extending into Montana, North Dakota and Wyoming in the U.S.
In the U.S., TAQA also has a gas-fired power station in New Jersey and a wind farm in Minnesota.
“In Canada, we have identified Central Alberta as a geographic region which we want to further invest in,” he said, adding that certain assets that fall outside central Alberta might be sold.
TAQA, which made a loss of 18.55 billion dirhams ($5.1 billion) in 2016, has cut 1,400 jobs since 2014 and currently the company’s headcount stands at 2,200, he said.
Earlier this month TAQA said that the Abu Dhabi Water & Electricity Authority (Adwea) raised its stake to 74% from 52.38% after granting TAQA land valued at 18.7 billion dirhams that could potentially offset accumulated losses.
At the company’s annual general meeting on April 19, TAQA’s chairman Saeed Mubarak al-Hajeri told shareholders that TAQA has no plans to sell the land.
Shareholders also voted for three new board members who will join the four existing members of the company’s board.
An official with the National Hydrocarbons Commission (CNH), the regulator that runs the auctions, said the joint venture auctions have not been canceled.
Chevron in July kicked off the sale of its central North Sea oil and gas fields Alba, Alder, Captain, Elgin/Franklin, Erskine and Jade as well as the Britannia platform and its satellites.
In reply to a question about the contracts, known in the oil and gas industry as "farm-outs," President Andres Manuel Lopez Obrador said the country would not offer more for the time being.