Page 6 - AsiaElec Week 24 2021

AsiaElec ACQUISITIONS AsiaElec

As transition kicks off, UAE’s

TAQA receives Chinese interest

CHINA 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,
and “become a champion for low-carbon power last week saying that cumulative production
and water”, pledging to invest over $10bn in the from the field had reached 45mn barrels of oil.
UAE to achieve this. It added that new development well CK-17 had
It intends to focus mainly on solar photo- been drilled to its total depth and completion
voltaic (PV) to increase the share of power pro- works were ongoing ahead of coming online
duced from renewable sources from the current within the next few weeks.
5% to more than 30% by 2030, and will improve Last year, UAE’s state-owned Abu Dhabi
desalination efficiency by increasing the role of Power Corp. (ADPower) transferred most of its
reverse osmosis to 66% by 2030. water and electricity generation, transmission
Ahead of the announcement of its transition and distribution assets to TAQA in an assets-for-
strategy, the company was reported to be consid- shares transaction, giving ADPower nearly 99%
ering the sale of its Canadian and UK North Sea of TAQA’s issued share capital.™
assets and admitted as much in the plans, saying

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