Abu Dhabi National Energy Company to Sell Its Oil Wells in North America

crude oil pumps
Image Source: Martin Lopatka, CC BY-SA 2.0

The government-run Abu Dhabi National Energy Company, commonly known as Taqa, is planning to sell some of its higher-cost oil wells in North America after reporting a record loss of $5.2 billion in 2016.

Owning around 6% of the crude reserves in the world, Abu Dhabi is merging government-owned firms since 2014 in an effort to cut costs and help address the slide in oil prices. During the downtrend, Taqa has written off assets, cut costs, sold businesses, and laid off workers at its oil wells after experiencing some losses.

But according to Taqa acting COO Saeed Hamad Al Dhaheri, his company’s oil and gas business in Europe and North America has become cash-flow positive after two years of cutting costs. Now, it wants to invest more in the hydrocarbon business in Alberta, Canada and is not planning to delist its stock from the Abu Dhabi exchange nor studies possible mergers. Al Dhaheri said:

“There are no current plans to sell any of our assets or exit from any of our existing markets. Taqa will continue to review our assets in order to evaluate options to optimize the portfolio and it may sell some oil and gas assets in the U.S. and in Canada outside of central Alberta.

“We are looking to sell some wells and deploy that capital to core assets, and we are still committed to our core business in North America.”