(Reuters) – The Abu Dhabi National Energy Company is close to concluding a deal to sell some light oil and natural gas producing assets in Alberta and British Columbia to privately owned Blue Sky Resources, three sources familiar with the matter told Reuters.
One of the sources said that Abu Dhabi National Energy Company, also called TAQA, had reached an agreement on terms of sale to Blue Sky, and that the deal was now awaiting approval by the Alberta Energy Board.
Reuters was not immediately able to know the value of the deal and other terms.
The sources declined to reveal their identity because the information is not public. They note that the Alberta regulator may reject the deal.
“When any deal is finalized and approved by the relevant authorities, we will make an announcement in line with regulatory requirements,” Taqa told Reuters in an email response.
Blue Sky did not respond to a request for comment.
A number of major international oil companies have rushed to sell assets in the Canadian oil sands over the past four years due to concerns ranging from rising production costs to emissions and a scarcity of capital.
If the sale of Taqa’s assets is completed, it would make it the second major international oil company to reduce its holdings in Canada in recent months. Last week, Japan’s state-backed oil company, Japan Petroleum Exploration Corporation (JAPEX), announced the sale of its Huntingston oil sands project.
Another group of Middle Eastern oil and gas companies, including Saudi Aramco (SE:), has announced plans to raise tens of billions of dollars by selling stakes in energy assets.
The production of the UAE’s TAQA assets being sold reached 9,359 barrels of oil equivalent per day in September 2020, according to marketing materials seen by Reuters. The assets being sold extend over 547,467 net acres.
Blue Sky Resources, based in Calgary, Alberta, has been making acquisitions across the region since the beginning of the year. The company, backed by oil tycoon Elias Chaudhry and his family, has completed at least two other acquisitions in the past six months.
Choudary previously led Saba Petroleum, based in Irvine, California, from 1985 to 1998. He later headed Capco Energy, an offshore oil exploration (SE:) company focused on the US Gulf Coast.
Little is known about Blue Sky, and its website says it is “being rebuilt”.
In March, the company bought oil production assets in Alberta from Highwood Oil Company. It had earlier acquired Zargon Oil & Gas, which was declared bankrupt.
(Prepared by Mahmoud Salama for the Arab Newsletter – Edited by Wajdi Al-Alfi)
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