Abu Dhabi National Energy Company (TAQA) is reportedly working on a deal to sell certain light oil and natural gas-producing assets in Canada to Blue Sky Resources.
According to a Reuters report, TAQA has already reached an agreement to sell the assets, which are located in Alberta and British Columbia.
As of September 2020, the assets had a production of 9,359 barrels of oil equivalent per day.
The deal currently awaits approval from the Alberta Energy Board, the news agency added quoting people familiar with the development.
However, other details, including the value of the transaction, are not immediately available.
In an emailed response to Reuters, TAQA said: “If and when any deal is finalised and approved by the relevant authorities, we will make an announcement in line with regulatory requirements.”
Meanwhile, Blue Sky Resources did not confirm the development.
If the deal proceeds, it will make TAQA the second multinational company to recently reduce its holdings in Canada.
Last week, Japan Petroleum Exploration (Japex) announced the sale of its Hangingstone oil sands project.
Over the last few years, several companies advanced to divest their Canadian oil sands due to several reasons such as increasing costs, lack of capital or stringent carbon emission requirements.
Blue Sky Resources is based in Alberta and has closed at least two other acquisitions this year.
In May, TAQA started decommissioning the Brae Bravo platform in the UK North Sea. The platform is a part of the Brae Area oil field and has been out of use since 2018.