Abu Dhabi’s TAQA mulls selling overseas oil, gas assets: sources

Abu Dhabi National Energy Co. (TAQA) is considering whether to sell its overseas oil and gas assets to another Abu Dhabi state-owned entity as the company shifts its focus to power generation and water production, Reuters reported, citing unnamed sources with knowledge of the matter.

Sources named International Petroleum Investment Co (IPIC), investment firm Mubadala, and Abu Dhabi National Oil Co. (ADNOC), as three potential state-owned buyers, without providing any details on the value of the sale.

However, TAQA’s oil and gas assets were valued at AED 30.10 billion by the end of 2015, according to its annual report. The report had also mentioned an agreement with a "related party" to allow that unnamed party to buy all oil and gas assets in North America and Iraqi Kurdistan, in addition to other assets in Europe, at an agreed price.

"TAQA's investment strategy hasn't worked as expected and weak oil prices are forcing it to sell its oil and gas assets to one of the Abu Dhabi government-related entities," a source was quoted by the news agency as saying.

The Abu Dhabi-listed energy firm reported a net loss of AED 1.8 billion for the 2015 fiscal year due to lower revenue from oil and gas. The company will not pay a dividend for FY-2015, the third straight year it has not paid shareholders.