Page 10 - MEOG Week 24 2021

MEOG FINANCE & INVESTMENT MEOG

Amid transition, UAE’s TAQA

receives Chinese interest

UAE ABU Dhabi has attracted interest from state- it would “focus on commercially viable oppor-
owned China Southern Power Grid Co. (CSG) tunities to reduce exposure to the hydrocarbon
as it seeks to sell a 10% stake in major utility Abu sector”.
Dhabi National Energy Co. (TAQA). Middle East Oil & Gas (MEOG) understands
Speaking to Bloomberg last week, sources from sources close to the company that it intends
said that CSG was in discussions with banks to to ring-fence the 47.4% stake it holds in the pro-
finance its acquisition of around 10% of TAQA, duction-sharing contract (PSC) for the Atrush
which could be worth in excess of $4bn based on block in the Kurdistan Region of northern Iraq.
its current market capitalisation. While TAQA rarely makes comments about
TAQA announced plans in March to reduce Atrush, its Canadian junior partner in the PSC,
its reliance on oil and gas for power generation ShaMaran Petroleum, gives regular updates, last
and “become a champion for low-carbon power week saying that cumulative production from
and water”, pledging to invest over $10bn in the the field had reached 45mn barrels of oil.
UAE to achieve this. It intends to focus mainly It added that new development well CK-17
on solar photovoltaic (PV) to increase the share had been drilled to its total depth and comple-
of power produced from renewable sources from tion works were ongoing ahead of coming online
the current 5% to more than 30% by 2030, and within the next few weeks.
will improve desalination efficiency by increas- Last year, UAE’s state-owned Abu Dhabi
ing the role of reverse osmosis to 66% by 2030. Power Corp. (ADPower) transferred most of its
Ahead of the announcement of its transition water and electricity generation, transmission
strategy, the company was reported to be consid- and distribution assets to TAQA in an assets-for-
ering the sale of its Canadian and UK North Sea shares transaction, giving ADPower nearly 99%
assets and admitted as much in the plans, saying of TAQA’s issued share capital.™

P10 www. NEWSBASE .com Week 24 16•June•2021