By Dylan Bowman
Acquisition gives Abu Dhabi National Energy Company a solid foothold in the country's energy market.
The Abu Dhabi National Energy Company (Taqa) has acquired Canadian oil and gas exploration firm Northrock Resources for $2 billion, giving it a solid foothold in the country’s energy market.
al will provide Taqa with an additional 142 million barrels of proven oil and gas reserves, the
barrels of oil per day, and key exploration and production expertise.
"We see the acquisition of Northrock Resources as a solid base for further investments and growth in Canada," said Peter Barker-Homek, chief executive of Taqa.
“Northrock Resources is a great addition to one of Taqa's core businesses - upstream oil and gas producing assets. We look forward to working with the employees of Northrock Resources and continuing to grow the business," Barker-Homek added.
Northrock, a subsidiary of US firm Pogo Producing Company, operates in the Western Canadian Sedimentary Basin and has properties
located largely in Alberta, Saskatchewan and the Northwest Territories.
The company’s proven
reserves consist of 80,079
of oil, condensate and natural gas liquids and 371,572
million cubic feet
of sales gas.
About 51% of the production and 55% of the Northrock reserves are oil.
The sale is expected to close during the third quarter, subject to customary closing conditions and regulatory approvals.
Through the sale, Pogo expects to increase profitability though
significantly reducing debt levels and lowering general, administrative and operating costs.
Last month, Pogo reported a first-quarter net loss of $21.2 million.
The company said
it would continue to explore other “strategic alternatives”, which could include the possible sale or merger of Pogo.
Taqa has in excess of AED 51 billion ($13.89 billion) in assets and turnover of over AED 3.3 billion ($898.8 million). During the first quarter Taqa’s revenues grew 44% year-on-year to
AED 1.05 billion ($286 million).
Earlier this month Taqa completed the acquisition of CMS Generation, a subsidiary of the US integrated energy firm CMS Energy.