Abu Dhabi National Energy may sell its oil and gas assets after a review, as the state-owned utility focuses on growing its utilities business. The shares gained.
“All options will be considered, including the sale of some or all the assets, or the retention and development of the assets,” the company, also known as Taqa, said on Wednesday. The business includes onshore and offshore exploration, and spans the U.K., Canada, the Netherlands, and Iraq’s Kurdistan region.
Taqa shares rose as much as 3% in Abu Dhabi on Thursday. Valued at $42 billion, Taqa is one of the largest listed companies in the United Arab Emirates.
The firm’s oil and gas business has struggled because of last year’s coronavirus-triggered slump in commodity prices and the portfolio could be worth substantially less than the billions of dollars it spent to build it, Bloomberg reported earlier this year.
In the first half of 2021, production across the portfolio totaled more than 124,000 barrels of oil equivalent per day and generated revenue of 3.4 billion dirhams ($937 million), Taqa said.
The company has a monopoly on power and water distribution in Abu Dhabi, capital of the oil-rich United Arab Emirates. The city’s government aims to create a regional utility champion out of the company.
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