After a comprehensive review of its business portfolio, "TAQA" decided to maintain its portfolio of oil and gas projects

The Abu Dhabi National Energy Company (TAQA) has completed the strategic review of its oil and gas business, which was announced in September 2021.

This strategic review included: Examining the options available to TAQA to sell some of its oil and gas assets.

'energy' decision

TAQA said in a statement that after completing the review, a decision was reached to maintain the portfolio of "TAQA" projects in the oil and gas field, with the exception of its assets related to exploration and production operations in the Netherlands, which is still under discussion today.

“TAQA” clarified that it takes this decision, taking into consideration the comprehensive economic changes that the countries of the world have witnessed during the past 12 months, which are expected to continue during the coming period, as well as other reasons related to the assets themselves.

Full review

Group CEO and Managing Director of TAQA, Jassim Hussein Thabet, said: “We conducted a comprehensive and in-depth review of our portfolio of projects in the oil and gas field, including communicating with multiple parties in the market, to consider the options available to us to sell our assets in this field.

Accordingly, we have decided to keep most of our projects related to oil and gas, as these projects bring additional value to the group and stakeholders alike.”

He added: “This decision is partly due to the remarkable contribution of our oil and gas business, which exceeds 15% of the group’s revenues and profits recorded in 2021, knowing that its contribution continues this year as well.

As for the decision to sell our exploration and production assets in the Netherlands, it is based on the nature of these assets and their relatively limited contribution to the group’s overall profits.”

He continued: “We are always committed to implementing our ambitious strategy to become the leading low-carbon utilities company in the Emirate of Abu Dhabi and beyond, and we continue to work to improve the quality and expansion of our business in the utilities sector, with our primary focus on renewable energy sources.

By doing so, we will continue our relentless pursuit of our climate-neutral goals by 2050.”

TAQA confirmed that, in line with the applicable regulations and legislation, the outcome of discussions related to the company's oil and gas exploration and production assets in the Netherlands will be announced in due course.

"energy" strategy

It is worth noting that TAQA's 2030 strategy focuses on developing its main businesses in the utilities sector, both locally and internationally.

In line with this strategy, TAQA Group seeks to increase its production capacity for electricity generation within the country from 18 to 30 gigawatts, in addition to producing an additional 15 gigawatts at the level of its international business.

TAQA currently owns and operates one of the largest photovoltaic solar power plants in one location in the world, and is working on constructing another plant that will be nearly twice the size of the current plant, at a production cost that is the lowest in the world.

By 2030, the Group's electricity generation portfolio will be based on renewable energy sources at a rate of no less than 30%, a significant increase from the current rate of 5%.

In addition, by 2030, the group aims to produce about 1.1 billion gallons per day of desalination in Abu Dhabi, where the highly efficient reverse osmosis technology will contribute to desalinating two-thirds of that quantity.

takeover agreements

TAQA recently signed agreements to acquire a controlling stake in Masdar's renewable energy assets, along with Mubadala and ADNOC.

After completing the deal, Masdar, with the support of TAQA and other joint stock companies, aspires to become one of the largest renewable energy companies in the world, with a production capacity of more than 50 gigawatts by 2030.

TAQA's investment in Masdar will enable the company to exceed its goals related to renewable energy sources and increase its total production capacity by 2030.

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