Source: Taqa

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Abu Dhabi National Energy Co. is considering options for its oil and gas assets, including a potential sale, as the state-owned utility focuses more on power generation, people familiar with the matter said.

The company, also known as Taqa, is speaking with potential advisers as it reviews a business that spans countries including the U.K. and Canada, the people said, asking not to be identified as the matter is private. Taqas oil and gas portfolio could be worth substantially less than the billions of dollars it spent to build it, the people said.

No final decisions have been made and it may decide not to proceed with a sale, the people said. Taqa didnt immediately respond to a request for comment.

Read more: UAEs Biggest Listed Firm Taqa Raises Foreign-Ownership Cap

Taqa has a monopoly on power and water distribution in Abu Dhabi, capital of the oil-rich United Arab Emirates. The citys government aims to create a regional utility champion out of the company. Last year, Abu Dhabi

orchestrated a plan for Taqa to receive assets from government-owned holding company

Abu Dhabi Power Corp., known as ADPower, in return for shares. The deal pushed Taqas valuation to more than $40 billion and made it one of the largest listed companies in the UAE.

The firms oil and gas business has struggled because of last years coronavirus-triggered slump in commodity prices. In 2020, it made revenue of 4.2 billion dirhams ($1.1 billion), a 31% drop from the previous year. Earnings before interest, tax, depreciation and amortization fell 71% to 700 million dirhams.

Taqa built its oil and gas unit mostly through acquisitions. It bought Calgary-based

Northrock Resources for $2 billion in 2007 and acquired

BP Plcs North Sea assets for $1.1 billion in 2012. In the U.K., the company also operates the Brent System pipeline, which carries about 5% of the countrys oil.

With assistance by Anthony Di Paola

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