Abu Dhabi National Energy Company (TAQA), one of the largest listed integrated utility companies in the region, has started a strategic review of its oil and gas operations as it is considering a possible sale of these assets.
The strategic review will weigh up various options for the oil and gas division and the optimal course for its future development while considering the evolution of the global energy sector as it moves towards a cleaner and more sustainable future, according to the company’s statement.
In line with the proposed plan, 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, the company added.
In April, TAQA said it planned to invest $10.8 billion in infrastructure development. The company plans to add about 27 gigawatts (GW) of power capacity by 2030 and expand its renewables portfolio. TAQA has upstream 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 $937 million, with a net income of $145 million. The announcement follows a shift among Abu Dhabi organizations 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 2GW, as part of the UAE’s efforts to increase clean energy capacity.
The company completed a merger with Abu Dhabi Power Corporation (ADPC) in July last year. The deal, effectively a reverse takeover, resulted in ADPC transferring assets worth $32.6 billion to TAQA in return for shares, giving it a 98.6 percent stake in the company.
The merged entity, which has assets worth $54.4, 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 percent of its issued shares.