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TAQA to sell some Canadian assets to Blue Sky

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This Wednesday, United Arab Emirates government-controlled energy holding company, Abu Dhabi National Energy Company (TAQA), announced it is nearing a deal to sell some light oil and natural gas-producing assets in Alberta and British Columbia. Particularly, this sale would target privately owned Blue Sky Resources Ltd. as the purchaser.

Read more of our news content, here; Oxy and Devon Energy surpass profit expectations

TAQA on selling these assets – strategic

Accordingly, the company, also called TAQA, announced it reached an agreement on terms of the sale to Blue Sky. Currently, the deal is now awaiting approval from the Alberta Energy Board.

In this sense, TAQA commented in an emailed response to Reuters; “If and when any deal reaches completion and approved by the relevant authorities, we will announce in line with regulatory requirements.”

Indeed, several global oil majors rushed to sell Canadian oil sands assets over the last four years. Particularly, these moves came amid increasing concerns ranging from high production costs and emissions to scarcity of capital.

Therefore, if finalized, TAQA’s sale of the assets would make it the second large international oil company to trim its holdings in Canada in recent months. In fact, last week, Japanese state-backed oil producer Japan Petroleum Exploration Co (Japex) announced the sale of its Hangingstone oil sands project.

Similarly, other Middle Eastern oil and gas companies, including Saudi Aramco, also outlined plans to raise tens of billions of dollars through sales of stakes in energy assets.

About Blue Sky Resources

Worth noting, the TAQA assets that the Company is selling had production of 9,359 barrels of oil equivalent per day as of September 2020. Besides, the assets in sale span 547,467 net acres.

On the other hand, Calgary-based Blue Sky Resources has some time making acquisitions around the region; specifically, since the start of this year. Indeed, the company completed at least two other acquisitions in the last six months.

However, and it is worth noting, not much is publicly known about Blue Sky. In fact, the company has a website that is still under construction.

Lastly, and it is worth noting, in March, the company purchased oil-producing assets in Alberta from Highwood Oil Company Ltd. Similarly, it earlier took over bankrupt company Zargon Oil and Gas Ltd.

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