Page 7 - MEOG Week 27 2022

MEOG FINANCE & INVESTMENT MEOG

TAQA decides to retain most

of its oil and gas assets

UAE AFTER skirting around a review process over upstream assets in the Netherlands is based on
the past two years, Abu Dhabi National Energy the nature of the assets and the relatively small
Company (TAQA) has decided against divesting contribution the assets make to TAQA group
the bulk of its oil and gas assets, while continu- earnings,” Thabet said, adding: “our midstream
ing its drive towards more renewable and clean assets, including our two gas storage facilities,
energy. will be retained.”
While it will still sell its upstream assets in the In March last year, the company said it would
Netherlands, TAQA will retain its entire portfo- rely on oil and gas for power generation and
lio of assets in Canada, the UK and the Kurdistan “become a champion for low-carbon power and
Region of northern Iraq. water”, pledging to invest over $10bn in the UAE
In a filing with the Abu Dhabi Securities to achieve this.
Exchange (ADX), the company said: “As part of It intends to focus mainly on solar photo-
the review, the company had been exploring the voltaic (PV) to increase the share of power pro-
potential sale of certain of its oil and gas assets. It duced from renewable sources from the current
has been concluded that TAQA’s oil and gas port- 5% to more than 30% by 2030 and will improve
folio will be retained, except for the upstream desalination efficiency by increasing the role of
assets in the Netherlands where discussions are reverse osmosis to 66% by 2030.
ongoing.” This will increase TAQA’s UAE generation
TAQA CEO and managing director Jasim capacity from 18 GW to 30 GW while it also
Husain Thabet was quoted as saying: “We have adds around 15 GW of international capacity.
concluded that retaining the vast majority of The company’s only asset in its home region
the portfolio will deliver the best value for the is the operated 47.4% stake it holds in the Atrush
company and its stakeholders,” adding that the production-sharing contract (PSC) in Iraqi
oil and gas side of the business had contributed Kurdistan.
15% of total revenue and earnings during 2021. Middle East Oil & Gas (MEOG) understands
The company’s Dutch assets include the Ber- that this was never intended to be part of TAQA’s
gen II production area, the Bergen Drying Facil- divestment and would be ring-fenced given the
ity and production facilities at the P15 and P18 asset’s significant potential.
concessions. Oil production from Atrush during Q1 this
It also operates the Bergermeer and Peak Gas year was reported by TAQA’s Canadian partner
Installation gas storage facilities, but these are to in the field ShaMaran Petroleum at 38,812 bar-
be retained. rels per day (bpd), up just a few hundred barrels
“Our decision to seek a buyer for the compared to Q1 2021.™

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