2013

TAQA subsidiary celebrates oversubscribed IPO, first day of trading on Casablanca Stock Exchange
24 Dec 2013
Jorf Lasfar Energy Company (JLEC) opened for trading today on the Casablanca Stock Exchange after its initial public offering (IPO) was oversubscribed 6.69 times.

Abu Dhabi, United Arab Emirates – Jorf Lasfar Energy Company (JLEC), TAQA’s Moroccan subsidiary, opened for trading today on the Casablanca Stock Exchange after its initial public offering (IPO) was oversubscribed 6.69 times.

Abdelmajid Iraqui Houssaini, CEO of JLEC was joined by Mohamed Boussaid, Morocco’s Minister of Economy and Finance, and members of the JLEC management team to celebrate the first day of trading by ringing the opening bell in Casablanca.

JLEC, which operates Morocco’s largest power complex, issued a total of 2,234,638 new shares, offered at a price of MAD 447.5 with a nominal value of MAD 100. These shares represent 9.47% of JLEC. Prior to the IPO, 4.74% were secured through private placement by Moroccan institutional investors RMA Watanya, Société Centrale de Réassurance and Mutuelle Centrale Marocaine d’Assurances. TAQA retains 85.79% of JLEC.

Carl Sheldon, TAQA’s Chief Executive Officer, said: “The great demand for JLEC shares reflects the strength of TAQA's power business in Morocco, where we are the market leader and have ambitious plans for growth. The kingdom's energy needs are expected to double in the next seven years and TAQA will continue to be a vital partner in meeting this demand."

Abdelmajid Iraqui Houssaini, Chief Executive Officer of JLEC, said: “Today's listing gives Moroccans the chance to share in the growth of the kingdom's largest power producer. With our new investor base, we are more strongly woven into the fabric of this fast-growing economy.”

TAQA has almost completed a USD 1.6 billion expansion of the Jorf Lasfar power complex, which will increase its generation capacity by 700 megawatts (MW) to 2,056 MW. Two new units are scheduled to be commissioned in 2014. When the expansion is complete, Jorf Lasfar will supply 50% of the Kingdom’s electricity.

- ENDS -

For further information:

TAQA Media Relations - Abu Dhabi
Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

TAQA recognised for bringing on next generation business leaders
17 Dec 2013
TAQA has been recognised by one of the world’s leading accountancy bodies for its work in bringing on the next generation of business leaders.

Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has been recognised by one of the world’s leading accountancy bodies for its work in bringing on the next generation of business leaders.

The Institute of Chartered Accountants in England and Wales (ICAEW), a world leader in the accountancy and finance profession with over 140,000 members across the globe, has presented TAQA with its Excellence in the Development of the Country’s Future Business Leaders, award.

HE Abdulla Al-Nuaimi, Vice Chairman of TAQA received the award at ICAEW’s prestigious Middle East Accountancy & Finance Excellence Awards ceremony at The Ritz Carlton in Abu Dhabi.

It was presented on behalf of ICAEW by the UK’s Ambassador to the UAE, Dominic Jermey.

TAQA beat two other shortlisted contenders on the basis of its work on a number of innovative talent initiatives designed to enhance vocational skills and facilitate continued personal development.

ICAEW noted that in 2012-2013 TAQA launched two new global talent development programmes at its Abu Dhabi HQ. The Talent Acceleration Programme provides opportunities for employees to focus on ambitions, learn new skills and shape behaviours and our Talent Leadership Programme develops advanced leadership skills and behaviours and best practice.

In its submission for the award, TAQA also highlighted its year-long graduate development programme, Tamkeen, which provides a clear path for Emirati graduates to develop a successful career. Involving a rigorous selection and a mentoring system, it enables network building and development of practical project delivery skills. 

“The graduate development program is key to our strategy for increasing the number of junior UAE nationals employed by TAQA and ensuring that each of them has access to training and development which will qualify them to hold senior positions in the future, with opportunities to work at HQ, UAE domestic plant or an international business unit,” said Ahmed Al Sarrah, senior human resources manager, in support of the TAQA entry. “The idea of designing such a unique programme is to attract a high quality talented UAE national graduates and prepare them to have a better knowledge of the energy industry.”

TAQA also stressed its offer of internationally recognised ACA and CFA training programmes, providing a platform for career development for highly skilled finance professionals.

The Bahrain Institute of Banking & Finance (BIBF) and Dubai Financial Service Authority (DFSA), were the other entrants for the Excellence in the Development of the Country’s Future Business Leaders, award.

ICAEW’s Middle East Accountancy & Finance Excellence Awards were launched in 2011 to celebrate the very best in the accountancy and finance profession in the Middle East and have already become a key date in the annual calendar of regional business leaders.

The awards ceremony featured guest speaker Clive Anderson, a former UK barrister turned broadcaster, and as master of ceremonies, Shereen Mitwalli. 

TAQA also sponsored its own award for Financial Journalist of the Year, which was presented by Gopal Gopalakrishnan, Chief Financial Officer - Oil and Gas at TAQA, to Joyce Njeri, Editor of Accountant Middle East. The other short listed candidates were ‘Business Breakfast’ Dubai Eye and Stefania Bianchi, a reporter for Bloomberg News.

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TAQA receives government approval for North Sea development
16 Dec 2013
TAQA has received approval from the UK government for development of its Morrone field in the Central North Sea.

Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has received approval from the UK government for development of its Morrone field (block 9/23b) in the Central North Sea.

The initial phase of development will consist of an extended reach well drilled from the TAQA-operated Harding platform which lies 5 km north of the Morrone field. Morrone is expected to initially produce over 3,000 barrels of oil equivalent per day with first oil expected in the 3rd quarter of 2014. 

Pete Jones, Managing Director of TAQA’s UK business, said: “Reaching this milestone so quickly is due to an intense effort by TAQA’s subsurface and wells teams, close collaboration with our partners, and a smooth transition of operatorship of the field from BP in June 2013.”

TAQA’s interest in Morrone is 70%. Maersk Oil North Sea UK Limited has a 30% interest.

- ENDS -

For further information:

TAQA Media Relations - Abu Dhabi
Allan Virtanen 
Head of Media
Tel +971 2 691 4894 
Mob +971 56 685 2717 
Allan.Virtanen@taqaglobal.com  

TAQA Media Relations - Aberdeen
Lucy Buglass
Corporate Communications Advisor
Tel: +44 1224 737645
lucy.buglass@taqaglobal.com 

About TAQA

TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents. 
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry. 
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

TAQA’s UK portfolio consists of 70% operated interest in the Harding field, 70% in the Morrone field  and 37.03% non-operated interest in the Maclure field. In Brae, TAQA has a total interest of 45.7% in Block 16/7a, a total 50.1% interest in East Brae, and a total 65% interest in the Braemar field.
TAQA also has 100% operated equity in the Tern, Kestrel, Eider, Cormorant North, South Cormorant, Falcon and Pelican Fields. It has a combined 26.73% interest in the Dana-operated Hudson field and a 24% interest in the Sullom Voe Terminal. It has an interest in the SAGE pipeline and onshore terminal, and the Brae-Miller Linkline. It TAQA also operates the Brent Pipeline System.
Over 500 employees and over 2500 contractors and subcontractors work for TAQA on the UKCS and onshore.

TAQA reshapes Abu Dhabi headquarters
12 Dec 2013
TAQA has undertaken a reorganisation at its headquarters to enhance efficiency.

Abu Dhabi, United Arab Emirates – TAQA, the international energy and water company based in Abu Dhabi, has undertaken a reorganisation at its headquarters to enhance efficiency.

The measures will reduce general & administrative costs by more than USD 20 million in 2014 and are part of a global initiative to position TAQA to deliver on its vision to be the leading international energy and water operator from Abu Dhabi.

“The corporate centre has grown over recent years to enable us to manage TAQA’s businesses across 11 countries effectively. Our commitment to pursuing excellence means we constantly review our cost base and monitor performance to ensure we deliver efficiently on our vision,” said Carl Sheldon, Chief Executive Officer.

As part of the reorganisation, the headquarters workforce will fall by 16%, reducing the headcount in the corporate centre to 189.

In eight years since it was founded through the privatisation of Abu Dhabi’s power and water fleet, TAQA has evolved into an operator of large-scale energy infrastructure in 11 countries including Ghana, India, Iraq, Morocco, the Netherlands, North America and the UK. In Abu Dhabi, the company has built up a world-class pool of talent of UAE National and expatriate professionals at its corporate centre in Sowwah Square, Maryah Island.

“As we become a more cohesive international group with greater capacity in Abu Dhabi, we are able to increase efficiency by leveraging our integrated global teams,” Mr Sheldon added.

Earlier this year, TAQA announced two phases of reorganisation in the North American oil & gas business. This delivered improved performance from a simpler structure and USD 28 million in annual general and administrative savings.

TAQA also continues to optimise its portfolio to focus on core activities where it has a competitive advantage. The company agreed to sell its stake in the Dutch pipeline business, NGT, in November for USD 240 million and is in the process of raising USD 181 million through the sale of 15% of its Moroccan power business in a stock market listing.

“We will continue to reshape the portfolio and manage our exposure to ensure we have the right balance of international assets and quality of earnings. We will concentrate on those businesses where we have a distinctive advantage and that deliver most effectively on the vision of Abu Dhabi and the UAE,” Mr Sheldon said.

In the UAE, TAQA is majority owner of eight power and water plants, which supply almost all of Abu Dhabi’s electricity and clean water. TAQA is also helping to diversify the UAE’s power and water sources with projects including water desalination, waste-to-energy, solar power, energy storage and energy efficiency.

- ENDS -

For further information:

TAQA Media Relations - Abu Dhabi

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com 

About TAQA

TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.

We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.

Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

For further information visit www.taqaglobal.com

TAQA subsidiary receives approval for Morocco listing
03 Dec 2013
Jorf Lasfar Energy Company has received approval to list on the Casablanca Stock Exchange.

Abu Dhabi, United Arab Emirates – Jorf Lasfar Energy Company (JLEC), TAQA’s wholly owned Moroccan subsidiary, has received approval to list on the Casablanca Stock Exchange.

JLEC, which operates Morocco’s largest power complex, is authorised by the Conseil Déontologique des Valeurs Mobilières (CDVM) to create a total of 2,234,638 new shares, offered at a price of MAD 447.5 with a nominal value of MAD 100. These shares represent 9.47% of JLEC and will be floated on the exchange. In addition to that, 4.74% were offered and fully subscribed through private placement to key Moroccan institutional investors prior to the initial public offering. TAQA will retain a 85.79% of JLEC.

Carl Sheldon, TAQA’s Chief Executive Officer, said: “The IPO will allow the Moroccan people and institutions to invest in their largest electricity generator. TAQA is committed to supporting Morocco’s strategy of securing the supply of energy while diversifying its fuel mix.”   

Abdelmajid Iraqui Houssaini, Chief Executive Officer of Jorf Lasfar Energy Company, said: “JLEC is the leading energy operator in Morocco and we feel that this new step will allow us to anchor our business in the Moroccan economy by opening up our capital to institutional investors."

TAQA has almost completed a USD 1.6 billion expansion of the Jorf Lasfar power complex, which will increase its generation capacity by 700 megawatts (MW) to 2,056 MW. Two new units are scheduled to be commissioned next year.

Jorf Lasfar supplied 38 per cent of the Kingdom’s electricity in 2012, and the expansion is vital to enabling national economic growth and job creation. TAQA is also developing alternative energy projects for Morocco, including wind power.

Electricity consumption in Morocco is expected to double by 2020 and quadruple by 2030.

- ENDS -

For further information:

TAQA Media Relations - Abu Dhabi
Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents. 
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry. 
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

TAQA appoints Michael T. McGuinty as General Counsel and Company Secretary
27 Nov 2013
TAQA has appointed Michael T. McGuinty as General Counsel and Company Secretary.

Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has appointed Michael T. McGuinty as General Counsel and Company Secretary.

Mr McGuinty, 51, takes over the role in January and will be based in Abu Dhabi. He succeeds Steven Phillips, who retires at the end of 2013. Mr McGuinty will report to Carl Sheldon, TAQA’s Chief Executive Officer, and will be a member of the Executive Management Team.

Mr Sheldon said: “We are delighted that Michael is joining TAQA. He has an excellent track record and his experience in the energy industry gained across the world will be an asset to the company. I wish to thank Steven for his invaluable contribution over the past seven years with TAQA.”

Mr McGuinty joins TAQA from Schlumberger, one of the world’s largest oilfield services companies, where he held a series of senior legal positions in the Middle East, Europe and North America. Most recently, he held the post of Deputy General Counsel & Director of Compliance. He previously served as Deputy General Counsel, Corporate; Director Legal, Strategic Transactions and Integration; and Director of Legal Operations, where he was responsible for a global team of 140 lawyers.

“I am looking forward to joining such a well-established and dynamic international company,” he said. “This is a unique opportunity to help shape TAQA’s future in a complex and fast-moving industry.”  

Before joining Schlumberger, Mr McGuinty worked for Davies Ward Phillips & Vineberg and Cassels Brock & Blackwell, two Canadian law firms. He has a Bachelor of Laws (LLB) and Bachelor of Civil Law (BCL) from McGill University in Canada, and a Bachelor of Social Sciences, Political Science & Spanish from the University of Ottawa. Mr McGuinty is fluent in French and Spanish.

A Canadian and Spanish national, Mr McGuinty is married and has two children.

- ENDS -

For further information:

TAQA Media Relations - Abu Dhabi
Allan Virtanen 
Head of Media
Tel +971 2 691 4894 
Mob +971 56 685 2717 
Allan.Virtanen@taqaglobal.com  

About TAQA 
TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents. 
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry. 
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

“Work for us and see the world,” TAQA tells Emirati undergrads in the UK
16 Nov 2013
TAQA has held its largest recruitment event for Emiratis outside of the UAE.

Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has held its largest recruitment event for Emiratis outside of the UAE.

Working in conjunction with the UAE embassy in the United Kingdom, the company played host to 60 UAE nationals at a two-day event in Aberdeen to showcase potential careers within the TAQA group.

It is the second event held by TAQA for UAE nationals studying abroad. A forum held at the UAE embassy in Ottawa, Canada for Emirati students in North America has already led to an internship.

Ken Boyle, TAQA’s Group Vice President for Human Resources, who helped stage the event said: “These are Emiratisation events; opportunities for us to engage with young Emiratis and to encourage them to take an interest in our international business.”

Among the students who attended were undergraduates, Masters’ students and PhDs, all studying at UK universities. TAQA used the UAE embassy and social media to draw up their invitation list.

Also present were two current UAE graduate trainees, Mayed Al Rayssi and Muhanna Al Nuaimi, there to give the assembled guests first-hand accounts of what it is like to begin your career with TAQA.

The first event of the weekend was a UAE-themed reception with the room decorated after the Arab fashion, and a menu of exclusively Arab fare. The morning of Day Two was taken up with presentations on what TAQA was, and what it did, while the afternoon was given over to adventure activities.

The students were also introduced to the internships and training schemes available for Emiratis wishing to spend time gaining work experience outside the UAE. They were also given the opportunity to discuss informally what it was like to train with TAQA.

Mr Al Rayssi, one of TAQA’s current UAE graduate trainees was on hand to offer advice: “We each gave a three to five minute speech,” he said. “We explained why we had chosen TAQA as our career, and what they could expect if they made the same choice.”

Mr Al Nuaimi said: “I stressed what it was like to work within the organisation, and how the training you receive is designed to show you what can be achieved when you work closer together; how you can become stronger together.

“I think many were surprised to learn what TAQA has achieved in the short time it has been in existence. And most thought Mayed and I had been working at TAQA for years. They were amazed to see that we were already working overseas and how much we knew about the industry after just a year.”

Mr Al Rayssi added: “We explained how the mentoring system at TAQA works: how we are guided by senior figures within each division, who are always on hand to explain, and to ensure we reach a comprehensive understanding of how each stage of the business works.”

Both graduate trainees agreed the event had gone down well with the guests. “More than one came up to me, expressing how seriously they were considering energy as a career now,” said Mr Al Nuaimi. “No other industry had paid them the same attention, or appeared so eager to attract them into a career as TAQA.”

Nearly all the guests agreed the spread of career opportunities within TAQA were a draw, regardless of the academic disciplines they were pursuing, from commercial openings to engineering and research and development work.

“Also, they liked the special way TAQA treated them. And they were all keen to learn more about potential internships.”

Mr Boyle described the Aberdeen event as, “an unqualified success. The net result is that TAQA has made 60-odd new friends. There has been huge Twitter traffic among the Emirati students involved and their friends – all of it positive – and we have gained great market intelligence on what young Emiratis think about the energy industry as a career.”

Following the forum in Ottawa, one of the students who attended, Salha Al Kuwaiti, became the first UAE intern in TAQA’s North American operations.

Salha, a UAE national, who was born in Abu Dhabi and brought up in Al Ain, holds a Bachelor of Software Engineering from the United Arab Emirates’ University, and is currently studying for a Masters degree in Computer Science at Concordia University in Montreal. To take part in the TAQA internship, Salha moved to Calgary in May, 2013 to work with the TAQA IT team there.

She was involved in two projects: automation of the SharePoint processes, and upgrading the SharePoint system, in addition to other problem-solving tasks.

”This experience has helped me gain more knowledge, self-confidence and determination to work hard and seek excellence and creativity.” Salha said. “It has helped me gain technical knowledge, and I have proved that I am a fast learner, and now I know the exact details of this system.”

As well as contributing to her professional development, the experience has helped her personally too.

“It has given me more self-confidence,” she added. “I attended meetings, discussed matters and gave my view point. I have learnt how to act in a highly organised work environment. People there showed much interest and support. They were extremely friendly with me as I was their first Emirati intern.

“I was assigned many tasks. My supervisors were impressed by my performance, and the evaluation I was granted at the end exceeded expectations.”

From the Aberdeen forum, Bassem Al Naqbi, a UAE studying for a PhD in International Law at Lancaster University, said: “The event added to my knowledge about the energy sector in the UAE. I was honoured with what my country has achieved, especially in alternative energy field.”

Mr Boyle, explaining the strategy behind the student forums, said: “Emirati students abroad are our target. We are going out of our way to bring in Emiratis with foreign experience; get them in, show them TAQA. This is very unique. It allows us to get our message across. Where you really can tell them; this is what TAQA is all about … a young, agile company with a very focused people agenda; say to them, if you want a real opportunity in the world, you should consider coming and seeing TAQA because this is where the world hits the road.

“If I was a young Emirati, I would like to think a company like TAQA is a really exciting opportunity.”

As an example, he pointed to Mayed Al Rayssi, the Emirati graduate trainee who helped with the Aberdeen event. As part of his international experience, he is currently preparing to spend three months on TAQA’s Tern production and drilling platform in the North Sea.

- ENDS -

TAQA, PensionDanmark agree on sale of Dutch pipeline stake
10 Nov 2013
TAQA has reached an agreement with PensionDanmark A/S to sell its stake in the NGT natural gas pipeline in the Netherlands.

Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has reached an agreement with PensionDanmark A/S, the Danish pension fund, to sell its stake in the Noordgastransport B.V. (NGT) natural gas pipeline in the Netherlands.

NGT consists of approximately 470 kilometres of offshore pipeline with a daily gas capacity of around 42 million m3. TAQA acquired its 40% stake in the pipeline, which is operated by GDF Suez E&P, in 2009 from Royal DSM N.V.

David Cook, TAQA’s Executive Officer and Head of Oil & Gas, said: “We decided that the investment in the Noordgastransport pipeline no longer fitted with our growth strategy in the Netherlands, which is focused on maximising the value of our portfolio and delivering Gas Storage Bergermeer.”

TAQA is the largest UAE investor in the Netherlands. Its activities include gas storage as well as the exploration and production of oil and gas. TAQA owns and operates a gas storage facility in Alkmaar and is developing Gas Storage Bergermeer, which will be the largest open-access gas storage facility in Europe when it reaches full capacity in 2015.

The NGT transaction is expected to close by year-end 2013, subject to regulatory approvals. Scotiabank acted as sole financial adviser to TAQA in respect of the sale.

- ENDS -

TAQA Q3 2013 Results
06 Nov 2013
TAQA, the international energy company from Abu Dhabi, today reported its operational and financial results for the nine months to 30 September 2013.

6 November 2013, Abu Dhabi, United Arab Emirates - TAQA, the international energy company from Abu Dhabi, today reported its operational and financial results for the nine months to 30 September 2013.

Key Highlights

AED million Q3 2012 Q3 2013 % +/- 9M  2012 9M 2013 % +/-
Total revenues 8,833 7,396 16 20,618 18,681 9
Power & Water (1) 2,094 2,285 11 6,086 6,230 2
Construction revenue 2,814 491 83 2,814 1,453 48
Fuel revenue (2) 952 807 15 2,890 2,381 18
Oil & Gas (2) 2,973 3,813 28 8,828 8,617 2
EBITDA 3,293 3,888 18 9,855 9,447 4
Profit Before Tax 695 591 15 3,196 1,116 65
Net profit After Minority Interests (288) 146 n/a 693 80 88
Basic earnings per share (AED) (0.05) 0.02 n/a 0.11 0.01 91
Net Debt/EBITDA (times)   5.3 6.2 -
Net debt to capital (%)   77 80 -

The company reported today it had returned to profit in the third quarter after posting a loss in the same period last year.

The positive figures were down to strong operational performances across its main divisions, following the successful resolution of a series of issues that had affected its UK Oil and Gas business and its Power and Water division.

Total revenues for 9M 2013 were AED 18.7 billion, compared with AED 20.6 billion in 9M 2012. If construction and fuel revenues are excluded, underlying revenues were flat at AED 14.9 billion.

Total revenue in Q3 2013 was almost AED 6.1 billion compared to AED 4.5 billion in the second quarter of 2013, excluding fuel and construction revenues, reflecting a 36% increase in underlying revenues, as key operations returned to full production.

The company demonstrated resilient cash generation of AED 8.2 billion, and maintained its robust financing position, with AED 4.0 billion in cash and cash equivalents.

Total year to date net income was AED 80 million, compared to AED 693 million for the first nine months of 2012.

The weaker year to date profit reflects reduced revenue due to the operational issues that have now been successfully resolved. In addition, the proceeds of a number of disposals in 2012, principally consisting of Tesla stock and excess North American acreage, complicate any direct comparison between the periods.

The company highlighted the successful completion of the integration of Harding, Morrone and Maclure fields in UK North Sea. In addition, Cormorant Alpha returned to production on 30 June, with full production restored on 24 August. Overall, UK production increased to 57.8 mboe/day in the third quarter, up 39% from the same period last year.

There was strong technical availability within the power business, following the successful resolution of technical problems at the Jorf Lasfar power plant in Morocco.

The refinancing for the Shuweihat 2 power and desalination plant was successfully completed, raising AED 3.0 billion of non-recourse project bonds.

At the end of the period, TAQA had four major projects underway. They are the expansion of the Jorf Lasfar power plant, due to be completed next year; the Takoradi plant in Ghana, due in 2015; the completion of the Bergermeer Gas Storage complex in the Netherlands and the Atrush oil and gas field in the Kurdistan region of Iraq. TAQA confirmed all four projects were on schedule and within budget.

Comment

Carl Sheldon, Chief Executive Officer, said:
“I am proud of the strong operational performance across the company as we recovered from the challenges faced in the first half of the year. In the UK, seamless integration of the assets we acquired in the Central North Sea, combined with the restoration of production at Cormorant Alpha, led to record levels of production in September. In October, the first of the two new units at Jorf Lasfar in Morocco was synchronised with the national grid, a major milestone in the full commissioning of both units by early 2014.”

Stephen Kersley, Chief Financial Officer, said:
“I am pleased that we have returned to profitability in the third quarter, reflecting our strong operational performance. However, we operate in tough economic conditions, particularly in the North American natural gas market. We must remain focused on executing our capital program efficiently and continue to review our operating and overhead costs globally.”

1 Excludes fuel revenue and construction revenues, also includes certain other operating revenue relevant to the Power & Water business.
2 Fuel revenues are a pass through from the offtaker to pay for input fuel
3Includes gas storage plus certain other operating revenue relevant to the Oil & Gas business
4Excluding fuel and construction revenues

Click here to view the full release in PDF format.

Incident AT JORF LASFAR POWER COMPLEX
29 Oct 2013
TAQA confirms that a failure occurred in a tank forming part of a chlorination unit of the Jorf Lasfar power complex in Morocco. The incident has no impact on power generation from Jorf Lasfar.

TAQA confirms that at approximately 09:30 local time a failure occurred in a tank forming part of a chlorination unit of the Jorf Lasfar power complex in Morocco.

One person working in the vicinity of the tank received minor injuries and was taken to hospital for observation.

The incident has no impact on power generation from Jorf Lasfar and there was no impact on the environment. 

A team has been formed to investigate the causes of the incident and underlying causes.

TAQA supports victims of human trafficking
27 Oct 2013
TAQA has signed an agreement with Ewa’a to support victims of human trafficking in the UAE.
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TAQA, the international energy company from Abu Dhabi, has signed an agreement with Ewa’a, a humanitarian organisation, to support victims of human trafficking in the UAE.

Ewa’a, meaning “to shelter”, is a non-profit initiative under the umbrella of the International Federation of Red Cross and Red Crescent Societies. Under the agreement, TAQA will provide support over the next three years to the upkeep of Ewa’a’s three shelters for vulnerable women and children in Abu Dhabi, Ras Al Khaimah and Sharjah. The Abu Dhabi shelter accommodates 60 women and children.

Ewa’a was established by donations received from Her Highness Sheikha Fatima bint Mubarak, the Chairwoman of the UAE General Women’s Union, the Family Development Foundation and the Supreme Council for Motherhood and Childhood. It reflects the UAE’s long-standing commitment to combat human trafficking and protect its victims. As part of a national action plan, the UAE has also set up a National Committee to Combat Human Trafficking, which works with various ministries and non-government organisations.

Khaled Al Sayari, TAQA’s Group Vice President of Strategic Relationships and Public Affairs, said: “We are honoured to be working with our partners in the UAE government to support this humanitarian project. The Ewa’a initiative is a testimony to the UAE’s commendable efforts in combating human trafficking, within and beyond its borders.”

Sarah Shuhailm, Ewa’a’s Executive Director, said: “It is important that TAQA has joined us in this project. Its support will of course help with the daily running of our work, but it will be especially valuable to this project to be able to call on TAQA’s experience in community projects internationally.”

Ewa’a partners with several Abu Dhabi entities to support victims by providing shelter, rehabilitation, education and helping them return to their countries of origin with dignity.

Sheikh Hamdan inaugurates power and water plant in Abu Dhabi
10 Oct 2013
His Highness Sheikh Hamdan bin Zayed Al Nahyan inaugurated a major new power and water plant in the Western Region in Abu Dhabi in the presence of other senior government representatives and dignitaries.
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Abu Dhabi, United Arab Emirates - His Highness Sheikh Hamdan bin Zayed Al Nahyan, Ruler's Representative in the Western Region, inaugurated a major new power and water plant in Al Gharbia (Western Region) of Abu Dhabi in the presence of other senior government representatives and dignitaries.

Located 260 kilometres southwest of the city of Abu Dhabi, Shuweihat S2 is the latest addition to Abu Dhabi's power and water infrastructure network. It adds 1,510 megawatts to the Emirate's generation capacity, enough to power more than 300,000 homes. The plant also produces up to 100 million imperial gallons of potable water each day, representing 15% of Abu Dhabi's water desalination capacity.

Shuweihat 2 is owned by Ruwais Power Company, a joint venture of TAQA (54%), Abu Dhabi Water and Electricity Authority (ADWEA) (6%), GDF SUEZ (20%), Marubeni (10%) and Osaka Gas (10%).

The Ruwais Power Company partners have invested US$2.7 billion in the construction of Shuweihat S2 with a view to meeting the challenge of providing reliable energy and water to a population in Abu Dhabi predicted to rise to five million by 2030.

His Excellency Abdulla Saif Al-Nuaimi, Director-General of ADWEA and Vice Chairman of TAQA, said: "The Late Sheikh Zayed bin Sultan Al Nahyan told us that we must not rely on oil alone as the main source of our national income, advising that we must diversify the sources of our revenue and construct economic projects that will ensure a free, stable and dignified life for the people. The Shuweihat S2 plant site is proof of our commitment to following this guidance, with its good performance in large part due to the contribution of our key equipment suppliers; Siemens, Samsung, C&T and Doosan. In addition to thanking these suppliers and our partners, I would also like to thank the 100 people employed at the plant for helping ensure successful operations over the period of these past 24 months."

Carl Sheldon, Chief Executive Officer of TAQA, said: "We are pleased to be part of this partnership to create greater prosperity for the communities of Al Gharbia through the development of infrastructure and economic growth. By investing in new power and water desalination infrastructure we are helping to ensure energy security and resilience of one the most important engines of Abu Dhabi's growth."

Addressing the audience, Dirk Beeuwsaert, Chairman of International Power Ltd and Advisor to the President and CEO of GDF SUEZ, said: "We are proud to be here today to mark the successful completion of Shuweihat S2, a power plant which signifies GDF SUEZ's ongoing commitment to the United Arab Emirates and indeed the broader GCC region. We are especially proud that our Group continues to be part of the process to provide Abu Dhabi with the supply of power and water it needs to sustain its growing economy. The key to the success of any project of this size and complexity is having a robust partnership in place. The successful completion of Shuweihat S2 is testament to the flexibility and efficiency of our project partners."

Electricity and water supply from Shuweihat S2 is transferred to Abu Dhabi Water and Electricity Company (ADWEC) under a 25-year purchase agreement. The plant employs approximately 100 people. Under the aegis of Abu Dhabi's "2030 Economic Vision", the Shuweihat S2 plant will contribute to the continued economic diversification and community development in Al Gharbia.

After speeches by ADWEA and GDF SUEZ, assembled guests and dignitaries witnessed the inauguration ceremony, followed by a tour of the S2 site. Representatives from TAQA, Marubeni and Osaka Gas, were honoured for their contributions towards energy efficiency and diversification, for contributing to the industrial development and living standards of the Western Region and strengthening the leadership position of the UAE in the Arab world.

Shuweihat S2 is implemented as part of the privatisation of the water and electricity sector pursued by ADWEA in line with Abu Dhabi Government directives. This privatisation initiative has proven to be one of the most successful in the world in terms of power and water production, foreign investment as well as finance raised from international, regional and local financial institutions.

- ENDS -

Media contacts:

TAQA
Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA
TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Kurdistan Region of Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.

TAQA receives approval for oilfield development in Kurdistan region of Iraq
07 Oct 2013
TAQA, the international energy company from Abu Dhabi, has received approval from the Kurdistan Regional Government (KRG) for the first phase in the development of the Atrush Block in the Kurdistan region of Iraq.

October 7, 2013, Abu Dhabi, United Arab Emirates – TAQA, the international energy company from Abu Dhabi, has received approval from the Kurdistan Regional Government (KRG) for the first phase in the development of the Atrush Block in the Kurdistan region of Iraq.

The TAQA-operated Atrush Block, located 85 km northwest of Erbil, is expected to initially produce approximately 30,000 barrels of oil per day (bpd) with first oil expected by early 2015.

“The Kurdistan region of Iraq is an exciting exploration frontier and has tremendous potential,” said David Cook, Executive Officer and Head of Oil & Gas at TAQA. “Through the Atrush development, TAQA is delighted to be part of the economic progress and growth in the region.”

“It is our ambition to build an integrated business in the Kurdistan Region of Iraq including potential power and water projects in addition to oil and gas infrastructure developments.”

The company plans to invest more than $300 million in Phase I in drilling three production wells and the construction of a central processing facility. TAQA and its partners have an active drilling programme on the Atrush Block and are continuing to appraise the area for further development.

Discovered in 2011, the Atrush field is expected to provide long-term benefits to the region and the community. The approval of the Field Development Plan by the KRG provides for a 25-year period during which TAQA and its partners expect to maximise recovery of the oil resources.

TAQA’s Managing Director in Iraq, Leo Koot, said: “This opportunity allows us to utilise our world-class expertise and capabilities gained through the management of complex projects around the globe. We are confident that progress achieved in our Atrush operations will provide a vital contribution to the future economy of the Kurdistan region of Iraq. We are delighted to be working closely with our partners in the KRG, the Ministry of Natural Resources, ShaMaran, and Marathon to develop this project.”

The Atrush partners are continuing appraisal activities. Subject to the outcome of this appraisal and KRG approval, the Phase 2 development is expected to include another 30,000 bpd production facility. TAQA and its partners will also evaluate the feasibility of producing associated natural gas for delivery to the domestic market.

TAQA is currently preparing to drill the fourth well on the Atrush block.

- ENDS -

For further information:

Media
Taryam Al Subaihi
Head of External Communications
Taryam.alsubaihi@taqaglobal.com

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA
TAQA means energy in Arabic. We are an international energy and water company listed in Abu Dhabi operating in 11 countries across four continents.
We strive to run our company safely and sustainably, operating to the highest ethical standards. We are proud to align our strategy to Abu Dhabi’s Economic Vision 2030, a roadmap for a sustainable economy with a focus on knowledge-based industry.
Our interests lie in conventional and alternative power generation, water desalination, oil and gas exploration and production, pipelines and gas storage. We operate in Canada, Ghana, India, Kurdistan region of Iraq, Morocco, the Netherlands, Oman, Saudi Arabia, the United Arab Emirates, the United Kingdom and the United States.
TAQA acquired its interest in the Atrush block on December 31, 2012. The Atrush block is operated by TAQA Atrush B.V., a subsidiary of TAQA, which holds a 39.9% working interest. ShaMaran Petroleum Corp. holds a 20.1% working interest through its wholly owned subsidiary, ShaMaran Ventures BV (100% owner of General Exploration Partners, Inc.). Marathon Oil KDV B.V., a wholly owned subsidiary of Marathon Oil Corporation (NYSE: MRO), holds a 15% interest. The KRG holds a 25% working interest.

Cormorant Alpha achieves full production capability
03 Sep 2013
Cormorant Alpha recommenced production on 30 June and full production capability was achieved on 24 August following completion of a re-instatement project.

Cormorant Alpha recommenced production on 30 June and full production capability was achieved on 24 August following completion of a re-instatement project.

TAQA First Half 2013 Results
31 Jul 2013
TAQA today reported its First Half 2013 operational and financial results.

31 July 2013, Abu Dhabi, United Arab Emirates - TAQA, the international energy company from Abu Dhabi, today reported its operational and financial results for the first half of 2013.

Q2 2012 Q2 2013 % +/- H1 2012 H1 2013 % +/-
Total assets 114,492 123,159 8 114,492 123,159 8
Total revenues 6,042 5,863 3 11,785 11,285 4
Power & Water (1) 2,094 2,095 - 3,992 3,945 1
Construction revenue 0 443 - 0 962 -
Fuel revenue 979 916 6 1,938 1,574 19
Oil & Gas (2) 2,969 2,409 19 5,855 4,804 18
Cost of sales (3) 4,212 3,869 8 7,694 7,375 4
Construction costs 0 280 - 0 670 -
EBITDA 3,113 2,858 8 6,562 5,559 15
Profit Before Tax 1,096 80 93 2,501 525 79
Net profit After Minority Interests 447 (172) - 981 (66) -
Basic earnings per share (AED) 0.074 (0.028) - 0.162 (0.011) -
Net Debt/EBITDA (times)   5.8 7.1 22
Net debt to capital (%)   76.6 80.7 4

All amounts in AED million unless otherwise stated

(1) Excludes fuel revenue and construction revenues. Also includes certain other operating revenue relevant to the Power & Water business.
(2) Includes gas storage plus certain other operating revenue relevant to the Oil & Gas business.
(3) Excluding construction costs

Summary

The first half of 2013 was characterised by good progress against TAQA’s long term growth projects, while a number of short-term operational issues impacted profitability.

Lower production in the UK North Sea and unplanned outages at two power plants were the main factors behind a 4% decline in revenue to 11.3 billion dirhams. A net loss was recorded after minority interests of 66 million dirhams.

A series of one-off incidents affected both the oil & gas and power & water divisions in the first half. These were resolved before the end of the period and the outlook for the rest of the year is positive. The comparison with first half results for last year is distorted by disposals of assets in North America and the sale of shares in Tesla Motors in 2012.

TAQA has emerged from the first six months of its financial year with strong operating cash flow of 4.3 billion dirhams and a liquidity position of 19.5 billion dirhams that provides us with ample capacity to cover upcoming maturities and finance our growth plans.

In the UK North Sea, limited production has already resumed at the Cormorant Alpha platform and full production is expected in the third quarter, after an internal leak closed it in January. In Morocco, TAQA took advantage of an unexpected outage at its largest international power plant at Jorf Lasfar to bring forward maintenance that was previously scheduled for 2014.

Carl Sheldon, Chief Executive Officer of TAQA, said: "We have worked hard to overcome a number of operational challenges that affected our performance in the first half of the year, while making great progress against project milestones. We are focused on operational excellence and look forward to ending the year with a positive financial outcome."

Stephen Kersley, Chief Financial Officer, said: "The second quarter is anticipated to be the low point of the year, with a positive outcome forecast for the 12-month period. We have over AED 19.5 billion of available liquidity, more than sufficient to cover upcoming maturities and finance our growth plans."

TAQA's business in North America, which accounts for approximately one quarter of the asset base, is seeing a turnaround with natural gas prices rebounding by 54% year-on-year, and production targets exceeded in the first half.

In the Kurdistan region of Iraq, TAQA and its partners submitted a field development plan for the Atrush block, where first production is expected in 2015. TAQA assumed operations of this concession in 2013 and is currently testing the third well on the block.

The major expansion project at the Jorf Lasfar power plant in Morocco is now 87% complete and scheduled for commissioning in the first half of 2014. Gas Storage Bergermeer, the strategic gas storage hub in the Netherlands, is due to begin phase one operations in mid-2014 with a full start-up in 2015. The Ghana power expansion is 44% complete and on track for an early-2015 start-up.

Click here to view the full release in PDF format.

Ruwais Power Company Power and Desalination Plant Issues USD 825 Million Bond
29 Jul 2013
TAQA, the global energy company from Abu Dhabi, has announced that the Ruwais Power Company power and desalination plant (Shuweihat 2) has completed an issuance of USD 825 million in project bonds.

July 29, 2013, Abu Dhabi, United Arab Emirates – TAQA, the global energy company from Abu Dhabi, has announced that the Ruwais Power Company power and desalination plant (Shuweihat 2) has completed an issuance of USD 825 million in project bonds.

The plant, which is 54% owned by TAQA, issued the bonds at a coupon of 6% with a final maturity in August 2036 and an average life of 21.5 years.

Stephen Kersley, Chief Financial Officer at TAQA, said: “We are pleased to have reached a successful execution of the Shuweihat 2 bond transaction in the face of a difficult market environment. Strong support from our key investors allowed us to build a substantial order book and achieve an attractive coupon of 6 per cent. This transaction not only increases the returns to TAQA for this project, but is also the first step in building an active and liquid project bond market in the region.”

Shuweihat 2 is a combined cycle co-generation facility located on the coast at Jebel Dhana, 250 km southwest of Abu Dhabi City. It is capable of producing approximately 1,500 MW of electricity and 100 MIGD of desalinated water. The entire production of 1,500 MW of power and 100 MIGD of water is purchased by the Abu Dhabi Water and
Electricity Company (ADWEC).

The power and desalination plant is owned by Ruwais Power Company, a joint venture between TAQA (54%), Abu Dhabi Water & Electric Authority (ADWEA) ( 6%), International Power – GDF Suez (20%), Marubeni (10%) and Osaka Gas (10%). IP-GDF Suez, Marubeni and Osaka Gas operate the plant.

- ENDS –

Contact Information:

Abu Dhabi
Taryam Al Subaihi
Head of External Communications
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power businesses are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration, development and production, underground gas storage and midstream infrastructure.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi Economic Vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA appoints new VP to head water expansion
15 Jul 2013
TAQA, the global energy company based in Abu Dhabi, has appointed Ahmed Bin Abbood Al Adawi to head the company’s water divisions globally.

TAQA, the global energy company based in Abu Dhabi, has appointed Ahmed Bin Abbood Al Adawi to head the company’s water divisions globally.

A UAE national with more than 13 years of experience in international energy, Mr Al Adawi will take up the post as Vice President, Water Development and Projects. He his previous role with TAQA was Director of Business Development and Special Projects for the company’s power and water business. Before joining TAQA, Mr Al Adawi was a business developer at Mubadala. In his new role Mr Al Adawi will report to Frank Perez, Executive Officer and Head of Power & Water.

Mr Perez commented: “With a proven record in the energy industry, Ahmed brings with him a wealth of knowledge and experience to his new role. His appointment, along with the introduction of our expansion plans in our water business, demonstrates TAQA’s commitment to develop Abu Dhabi as a global leader for water desalination.”

TAQA, one of the largest desalination companies in the world, is majority owner of eight power and water plants across the UAE supplying 98% of Abu Dhabi’s power and water requirements.

TAQA recently celebrated the ground breaking of the expansion of its Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE. The expansion, which is expected to be completed in the first half of 2015, will increase the plant’s seawater desalination capacity by 30 million imperial gallons per day (MIGD) to 130 MIGD using reverse osmosis technology. This combined reverse osmosis desalination capacity will make the Fujairah 1 IWPP the largest reverse osmosis desalination facility in the Middle East, and will be essential  meet the expected increase in water demand in the UAE.

“As a leading global energy company, we continuously apply emerging technologies to remain in the forefront of our industry. We are particularly excited about the opportunities reverse osmosis technology can offer in the region,” Mr Perez added.

The reverse osmosis process involves removing salt from the water using a membrane. Most of the UAE’s existing supply is desalinated using heat from power plants to boil and distil the water. This means water can only be desalinated when power plants are running and there is a direct connection to transfer the heat. Because reverse osmosis runs on electricity, this new type of plant can be built near consumption areas and increasing the security of water supply. Reverse osmosis technology has been progressively developing and is becoming one of the most economical and efficient ways to produce drinking water.

Water demand in Abu Dhabi is expected to reach more than 1,300 MIGD by 2030, which will require the construction of more than 770 MIGD of desalination capacity.

- ENDS -

TAQA launches first sustainable development report
07 Jul 2013
TAQA, the global energy company based in Abu Dhabi, has released its first annual sustainable development report.

July 7, 2013, Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, has released its first annual sustainable development report. The report outlines TAQA's approach and performance in 2012 as well as goals for workplace health and safety, staff development, environmental protection, community relations and industry partnerships.

The report, entitled "Our contribution to sustainable development – Report 2012", reinforces TAQA's commitment to creating value for the long-term future while acting responsibly, protecting its employees, being active in the community, minimising the impact on the environment and remaining the partner of choice in its chosen markets through trusting relationships with business and governmental partners.

His Excellency Abdulla Saif Al-Nuaimi, TAQA's Vice-Chairman, said: "It gives me great pleasure to see TAQA integrate these key sustainability drivers into the organisation's strategy and at the same time supporting sustainable development reporting in Abu Dhabi. This report is crucial to achieving TAQA's long-term goals through its support of the Abu Dhabi Economic Vision 2030. TAQA is Abu Dhabi's premier international energy and water operator, a position which it has attained by being an excellent neighbour and always striving for excellence."

Carl Sheldon, TAQA's Chief Executive Officer, said: "At TAQA, safety and sustainability are two of our core values and are at the forefront of how we do business. Energy is the lifeblood of any developing economy and by delivering it safely and securely to millions of people worldwide TAQA improves quality of life. We welcome our stakeholders' feedback in assisting TAQA in becoming a regional forerunner in sustainable development reporting."

Key highlights of the report for the 2012 financial year include:

  • Surpassing recordable injury rate safety targets across TAQA's global operations
  • Establishing the Energy Solutions division to develop alternative and technology-fuelled initiatives
  • Developing the UAE's first municipal waste-fired power plant in Abu Dhabi which will reduce more than 1 million tonnes of carbon dioxide emissions per year
  • A reduction in reportable spills across global operations by almost one-third on the previous year
  • Adding 50% more capacity to TAQA's gas-fired power plant in Ghana without the need for additional fuel

The report also includes an interview with Dr Saif Al Sayari, Head of Energy Solutions Division business stream and Chairman of the TAQA Sustainable Development Committee, on the company's role in developing solutions to meet growing demand for energy.

The report was produced with reference to several internationally-recognised reporting frameworks and with the support of the Abu Dhabi Sustainability Group which promotes sustainability management in Abu Dhabi.

The report is available for download in English and Arabic at: www.taqaglobal.com

- ENDS –

Contact Information:

Abu Dhabi
Taryam Al Subaihi
Head of External Communications
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA's business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power businesses are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration, development and production, underground gas storage and midstream infrastructure.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.

TAQA's vision is to deliver 'Energy for Growth': growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi Economic Vision 2030, working towards sustainable economic development.

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

New managing director formally joins TAQA’s UK business
01 Jul 2013
TAQA, the global energy company based in Abu Dhabi, today announced that Pete Jones has today formally joined TAQA to succeed Leo Koot as managing director of TAQA’s UK oil and gas business

July 1, 2013, Abu Dhabi, United Arab Emirates - TAQA, the global energy company based in Abu Dhabi, today announced that Pete Jones has today formally joined TAQA to succeed Leo Koot as managing director of TAQA’s UK oil and gas business.

Mr Jones joins TAQA from Marathon Oil Corp. where he held the position of Regional Vice president – Wyoming. During his career at Marathon, he also held various roles including Managing Director - UK, responsible for the company’s UK operations which included the Brae field and Devenick tieback. Mr Jones has a Master’s Degree in Operations Research (Eng) from the University of Birmingham and is a British national.

He comments: “TAQA has probably one of the best portfolios in the UK and there are great opportunities in exploration and development, the acquisition environment and asset development.”

Mr Koot has been appointed Managing Director of TAQA in Iraq and will be responsible for all of TAQA’s operations in Iraq.

-ENDS-

Notes to editors:

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: Power generation & Water desalination; Oil and Gas exploration & production; and Energy Solutions.

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

TAQA’s UK portfolio consists of a 70% interest in the Harding field, 70% in the Morrone field  and 37.03% interest in the Maclure field. In Brae, TAQA has a total interest of 45.7% in Block 16/7a, a total 50.1% interest in East Brae, and a total 65% interest in the Braemar field.

TAQA also has an interest in the SAGE pipeline and onshore terminal, and the Brae-Miller Linkline. It has 100% operated equity in the Tern, Kestrel, Eider, Cormorant North, South Cormorant, Falcon and Pelican Fields. It has a combined 26.73% interest in the Dana-operated Hudson field and a 24% interest in the Sullom Voe Terminal. TAQA also operates the Brent Pipeline System.

###

TAQA, Sembcorp and ADWEA celebrate the groundbreaking of seawater desalination expansion project in Fujairah, UAE
30 Jun 2013
Sembcorp Industries (Sembcorp) and its project partners, Abu Dhabi Water and Electricity Authority (ADWEA) and Abu Dhabi-based global energy company TAQA, today celebrated the groundbreaking of the US$200 million expansion project for the Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE.
ADWEA, TAQA, SEMBCORP
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  • Construction of Middle East’s largest reverse osmosis desalination facility commences

Fujairah, UAE, June 30, 2013 – Sembcorp Industries (Sembcorp) and its project partners, Abu Dhabi Water and Electricity Authority (ADWEA) and Abu Dhabi-based global energy company TAQA, today celebrated the groundbreaking of the US$200 million expansion project for the Fujairah 1 Independent Water and Power Plant (IWPP) in the UAE. Once complete, the expansion will increase the plant’s seawater desalination capacity by 30 million imperial gallons per day (MiGD). This additional output will be produced using reverse osmosis technology.

The groundbreaking ceremony was attended by Consul-General of Singapore in Dubai, His Excellency Cheong Ming Foong, Director General of the Abu Dhabi Regulations and Supervision Bureau (RSB), Nick Carter, as well as senior management representatives from Sembcorp and its project partners ADWEA and TAQA.

The expansion, which is expected to be completed in the first half of 2015, will increase the capacity of Fujairah 1 IWPP from 100 MiGD to 130 MiGD, of which 67.5 MiGD will be produced using reverse osmosis process. The remaining 62.5 MiGD is produced using multi-stage flash technology. This combined reverse osmosis desalination capacity will make the Fujairah 1 IWPP the largest reverse osmosis desalination facility in the Middle East, and will be essential to help meet the expected increase in water demand in Abu Dhabi and the northern Emirates in the coming years.

The 30 MiGD water output from the expansion will be sold to the Abu Dhabi Water & Electricity Company (ADWEC) under a 20-year water purchase agreement, signed in January this year. This is in addition to the existing 22-year power and water purchase agreement with ADWEC for the plant’s current water and electricity output.

The Fujairah 1 IWPP, one of the world’s largest operating hybrid desalination plants, is owned and operated by Emirates Sembcorp Water & Power Company (ESC), a joint venture between TAQA (54%), Sembcorp (40%) and ADWEA (6%).<

Tang Kin Fei, Group President & CEO of Sembcorp, said, “The expansion of our seawater desalination capacity will play an important role in meeting the increasing water demand in the UAE. Our plant, strategically located in Fujairah, will enable us to produce desalinated water more economically for our customer. The expansion project also enables the use of uncontracted surplus power from the existing plant, hence allowing excess generation capacity to be gainfully utilised to produce the additional water at a competitive cost and enhance our income at the same time.”

Commenting on the project, Mr Carter said, “This additional expansion is part of an integrated approach to provide high quality drinking water to the northern Emirates and to satisfy the increasing demand in Abu Dhabi. It is an excellent example of joint co-operation between the UAE’s Federal Electricity & Water Authority and ADWEA, in collaboration with a first-class private sector operator, Sembcorp. RSB has licensed this facility at Fujairah, having been satisfied of the need for a further 30 MiGD of drinking water production and the operational skills and financial standing of the project company, ESC.”

Frank Perez, TAQA’s Executive Officer and Head of Power & Water, said, “The expansion of the Fujairah 1 power and water plant marks a significant milestone in TAQA’s journey towards water sustainability. The reverse osmosis desalination technology used at the plant is one of the most economical and efficient ways to produce drinking water.

“At TAQA, we are committed to helping the government of Abu Dhabi address the UAE’s water desalination challenges. Thanks to the support of our trusted partners, the expansion will help provide reliable water supply to the northern Emirates and Abu Dhabi.”

William Chang, Executive Managing Director of ESC, said, “One of the most innovative aspects of this expansion project is its ability to recover seawater discharge from the existing multi-stage flash facility for reuse as part of the seawater feed for the entire Fujairah 1 IWPP. The expansion will also include the installation of a new Dissolved Air Floatation system, which will improve the quality of the seawater feed. This system will enhance the reliability and availability of the reverse osmosis facility.”

Sembcorp has been operating in the Middle East since 2006, starting with the Fujairah 1 IWPP. Sembcorp also owns and operates the Salalah Independent Water and Power Plant, the largest and most energy-efficient power and water plant in Dhofar, southern Oman. The Group is embarking on its third project in the Middle East with a joint venture with Takamul Investment Company to develop centralised utilities facilities for the Duqm Special Economic Zone in Oman – the first ever centralised utilities model to be implemented in Oman.

- END -

Sembcorp
For analysts and media queries, please contact:

Aleve Co (Ms)
Senior Manager
Group Corporate Relations
DID: +65 6723 3178
Email: aleve.co@sembcorp.com
Melissa Yee (Ms)
Manager
Group Corporate Relations
DID: +65 6723 3326
Email: melissa.yee@sembcorp.com

ABOUT SEMBCORP INDUSTRIES

Sembcorp Industries is a leading energy, water and marine group operating across six continents worldwide. With facilities of over 5,800 megawatts of gross power capacity and over seven million cubic metres of water per day in operation and under development, Sembcorp is a trusted provider of essential energy and water solutions to both industrial and municipal customers. It is also a world leader in marine and offshore engineering as well as an established brand name in urban development.

The Group has total assets of more than S$13 billion and employs over 9,000 employees. Listed on the main board of the Singapore Exchange, it is a component stock of the Straits Times Index, several MSCI and FTSE indices as well as the Dow Jones Sustainability Asia Pacific Index.

Note to Editors:

Please refer to the company as “Sembcorp” (with “S” in upper case and “c” in lower case), or “Sembcorp Industries” in full. Please also note that “Sembcorp” is not an abbreviation of “Sembawang Corporation” but a brand name in itself, and it is therefore incorrect to refer to our company as “Sembawang”, “Sembawang Corporation” or similar.

TAQA

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s Economic Vision 2030, working towards sustainable economic development.

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA supports Alberta flood disaster relief efforts
28 Jun 2013
TAQA, the global energy company based in Abu Dhabi, is contributing CDN100,000 to the Canadian Red Cross relief to support rehabilitation efforts following the most devastating flooding in history in the City of Calgary and the Province of Alberta.

June 28, 2013, Abu Dhabi, United Arab Emirates - TAQA, the global energy company based in Abu Dhabi, is contributing CDN100,000 to the Canadian Red Cross relief to support rehabilitation efforts following the most devastating flooding in history in the City of Calgary and the Province of Alberta. TAQA has also launched a campaign to raise further funds among its employees and has pledged to match contributions up to CND 50,000.

Calgary and surrounding areas in Alberta, Canada remain in a state of emergency after heavy rain and melting snow caused heavy flooding. At the peak of the flooding more than 175,000 Albertans were forced out of their homes.

David Cook, Executive Officer and Head of Oil & Gas at TAQA, said: "I would like to recognise and thank the City of Calgary and its Emergency Management Agency for their tremendous work, quick response and tireless efforts to the worst flooding in Calgary’s history.  We are extremely grateful for the dedicated group of first responders, Red Cross, Canadian Forces and the countless volunteers including our own TAQA staff who have given their time to assist those affected. Our thoughts are with those who have been impacted by the devastation throughout the province."

The flooding forced authorities to evacuate Calgary's downtown core including the main TAQA office at Jamieson Place. TAQA staff continue to work remotely from home to allow the City of Calgary and its officials to continue their clean-up efforts. TAQA’s Calgary office will reopen next week.

Edward LaFehr, President of TAQA North said: "We appreciate the incredible contributions our employees have made to keep our critical business processes running and their tireless support of our colleagues, their families, friends and strangers during this very difficult time. They have shown the true spirit of Calgary."

TAQA employs 900 people in North American and has operations in Alberta, British Columbia, Saskatchewan, Ontario, Montana, North Dakota, Wyoming and Colorado.

The Canadian Red Cross is accepting donations online, by phone at 1-800-418-1111 or in person at any Red Cross office or branch. Further information: www.redcross.ca/Donate

- ENDS -

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob: +97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA
Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA completes acquisition of BP assets
01 Jun 2013
TAQA has today completed the acquisition of UK North Sea oil and gas assets from BP.

1 June 2013, Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, has today completed the acquisition of UK North Sea oil and gas assets from BP.

TAQA takes over as operator of the Harding field and production platform in the Central North Sea, complementing the company’s existing assets in the Northern North Sea. The acquisition is expected to add 20,000 barrels of oil equivalent per day (boed) of production.

Carl Sheldon, Chief Executive Officer at TAQA, said: "We are delighted to announce the completion of this acquisition which extends the average life of our UK reserves and opens up a bright future for our North Sea business. This investment is a great strategic fit for TAQA.”

The assets were acquired under the agreement signed in November 2012 with an economic effective date of 1 January 2012, for USD 1,058 million, including an allocation for tax allowances. A deposit of USD 632 million was paid at signature of the agreement. The remaining consideration has been adjusted for cash flow since the effective date.

As a result of the acquisition, TAQA now has interests in the Harding, Morrone and Maclure fields. The transaction has also increased TAQA’s interests in the Brae area, the SAGE gas pipeline and Forties-Brae and Forties-Braemar oil pipelines.

The acquisition of the Devenick field interests, forming part of the transaction, is expected to complete at a later date.

- ENDS -

Contact Information for Media:

TAQA UK Media Relations
Britta Hallbauer
Corporate Communications Manager
Mob: +44 (0)7795 312976

Abu Dhabi
Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

Notes to editors

TAQA’s interest in the newly acquired fields: 70% in the Harding field, 70% in the Morrone field and 37.03% interest in the Maclure field. In Brae, TAQA has a total interest of 45.7% in Block 16/7a, a total 50.1% interest in East Brae, and a total 65% interest in the Braemar field.

Evercore Partners acted as financial adviser to TAQA in relation to this transaction.

About Abu Dhabi National Energy Company PJSC (TAQA):

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).
TAQA’s business is made up of three operating divisions spread across the entire energy value chain: Power generation & Water desalination; Oil and Gas exploration & production; and Energy Solutions.
TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.
Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.
In addition to the newly acquired assets, TAQA’s UK portfolio consists of the Brae Area assets, Beinn and Braemar fields, as well as the SAGE pipeline and onshore terminal, and the Brae-Miller Linkline. It has 100% operated equity in the Tern, Kestrel, Eider, Cormorant North, South Cormorant, Falcon and Pelican Fields. It has a combined 26.73% interest in the Dana-operated Hudson field and a 24% interest in the Sullom Voe Terminal. TAQA also operates the Brent Pipeline System.

TAQA appoints UK, Iraq Managing Directors
09 May 2013
TAQA, the global energy company based in Abu Dhabi, has appointed Pete Jones to the position of Managing Director for TAQA’s UK oil and gas business. Mr Jones will be based in Aberdeen and responsible for the company’s operations in the UK North Sea.

Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, has appointed Pete Jones to the position of Managing Director for TAQA’s UK oil and gas business. Mr Jones will be based in Aberdeen and responsible for the company’s operations in the UK North Sea.

Mr Jones joins TAQA from Marathon Oil Corp. where he held the position of Regional Vice president – Wyoming. During his career at Marathon, he also held various roles including Managing Director - UK, responsible for the company’s UK operations which included the Brae field and Devenick tieback. Mr Jones has a Master’s Degree in Operations Research (Eng) from the University of Birmingham and is a British national.

Mr Jones succeeds Leo Koot who has been appointed Managing Director of TAQA in Iraq.

Mr Koot will be responsible for all of TAQA’s operations in Iraq. Mr Koot joined TAQA in 2008 and is a Dutch national.

David Cook, TAQA Executive Officer and Head of Oil and Gas, said: “Leo Koot has successfully built our UK business from scratch, and we are now a leading North Sea oil and gas operator. I am proud to have such a successful leader taking on the task of building our new operations in Iraq.”

“Pete Jones brings highly relevant skills and leadership experience to TAQA, where he will be leading the next phases in the evolution of TAQA’s North Sea business. We have already been successful in redevelopment of Northern North Sea assets and look forward to further expansion through exploration, development and the newly acquired BP assets.”

TAQA has oil and gas operations in North America, UK, the Netherlands and the Kurdistan region of Iraq and produced an average of 135 thousand barrels of oil equivalent per day in 2012.

- ENDS -

Contact Information:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

TAQA UK Media Relations

Lucy Buglass
Corporate Communications Advisor
Tel: +44 1224 737645
lucy.buglass@taqaglobal.com  

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power businesses are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration, development and production, underground gas storage and midstream infrastructure.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi Economic Vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA Q1 2013 Results
08 May 2013
TAQA, the global energy company based in Abu Dhabi, today reported its Q1 2013 operational and financial results.

Abu Dhabi, United Arab Emirates - TAQA, the global energy company based in Abu Dhabi, today reported its Q1 2013 operational and financial results.



Q1 2012

Q1 2013

 

% +/-

Total assets

116,151

121,108

 

▲4

Total revenues

5,743

5,422

 

▼6

         Power & Water (1)

1,898

1,851

 

▼2

Construction revenue

0

517

 

-

         Oil & Gas (2)

2,886

2,396

 

▼17

Fuel revenue

959

658

 

▼31

Cost of sales (3)

3,472

3,515

 

▲1

Construction costs

0

381

 

-

EBITDA

3,449

2,702

 

▼28

Profit Before Tax

1,405

445

 

▼70

Net profit After Minority Interests

534

106

 

▼80

Basic earnings per share (AED)

0.088

0.017

 

▼81

Net Debt/EBITDA (times)

5.5

7.1

 

-

Net debt to capital (%)

78.4*

79.2

 

-

All amounts in AED million unless otherwise stated

(1) Excludes fuel revenue and construction revenues. Also includes certain other operating revenue relevant to the Power & Water business.

(2) Includes gas storage plus certain other operating revenue relevant to the Oil & Gas business.

(3) Excluding construction costs

(*) As at 31 December 2012

Summary

Revenues were down 6%, largely due to a shut-in of Cormorant Alpha in January 2013 during a major inspection, repair and maintenance programme. Stronger North American gas prices were offset by weaker North American oil and liquids prices.

Profitability was consequently impacted, although in the comparable period in 2012 profitability was supported by the proceeds of disposals, making direct comparison difficult.

Power & Water faced operational challenges, due to a number of forced outages at TAQA’s domestic and international plants. TAQA’s organic growth projects are proceeding well, with Jorf Lasfar over 80% complete and Takoradi having broken ground. TAQA also progressing detailed negotiations to enter the Turkish energy market, following an agreement between the Turkish and UAE Governments.

Notwithstanding the shut-in of Cormorant Alpha, which is still on-going, TAQA made good progress in other areas of the North Sea, including making a discovery at the Darwin field and, post-period, securing government approval for its plans at the Cladhan field. A strong performance in the Netherlands also positively boosted TAQA’s performance. TAQA commenced operations at its Atrush block in the Kurdistan region of Iraq and is currently drilling its third well.

TAQA reinforced its strong financial position with robust available liquidity of AED 21.8 billion and, post period, Standard & Poor’s announced that it was raising TAQA’s A rating to a positive outlook.

Comment

Carl Sheldon, Chief Executive Officer of TAQA, said:

“I can take some positives from what was a challenging quarter. Our major construction and development projects in Morocco, Ghana, the Netherlands and Iraq are all progressing very well and will start generating significant revenues in the next two to three years. Stronger natural gas prices in North America position us well to take advantage of our large land position and prospects in Western Canada. Similarly, new developments and discoveries in our North Sea business promise to extend the life of these assets. The halting of production on the Cormorant Alpha platform was the right thing to do to ensure the safety and integrity of this critical piece of North Sea infrastructure.

Stephen Kersley, Chief Financial Officer, said:

“We started the year in a very strong financial position having renewed our corporate credit facilities and secured all bond maturities for the year at unprecedented rates. The outlook remains strong with increased liquidity and an enhanced debt maturity profile. Although our financial performance has been affected by operational outages, our cash flows remain extremely strong and we are well placed to benefit as those operational issues are resolved. I am also delighted that the strength of our cash flows have been recognised by Standard & Poor's, which recently raised our A rating to a positive outlook. ”

Financial summary: Q1 2013 versus Q1 2012

Revenues and costs

Total revenues for Q1 2013 were AED 5.4 billion, 6% lower year-on-year, compared with total revenues of AED 5.7 billion in Q1 2012. Cost of sales, excluding construction expenses, were AED 3.5 billion in Q1 2013, an increase of 1% over the prior year period.

Power & Water

Power & Water revenues, excluding supplemental fuel and construction revenues, were flat at AED 1.9 billion. Construction and Finance revenues from the Jorf Lasfar and Takoradi 2 expansion projects of AED 517 million were offset by construction costs of AED 381 million, leaving a profit margin of AED 136 million.

Supplemental fuel income decreased 31% year-on-year to AED 658 million.

Operating expenses for Power & Water (which excludes fuel costs and construction costs) rose 15% year on year to AED 468 million in Q1 2013, due to an unplanned outage at Jorf Lasfar and higher costs at Taweelah in the UAE. Depreciation, Depletion and Amortisation (“DD&A”) expenses for Power & Water rose 2% to AED 455 million in Q1 2013, compared with AED 447 million in Q1 2012.

Oil & Gas

Total Oil & Gas revenues (including gas storage and other income) were down 17% at AED 2.4 billion for Q1 2013, due to lower production in the UK North Sea, offset by higher production in the Netherlands and stronger gas prices in North America.

Oil & Gas expenses rose from AED 812 million in Q1 2012 to AED 1.0 billion in Q1 2013, principally due to higher repair and maintenance costs in the UK. Oil & Gas Depreciation, Depletion and Amortisation (DD&A) expense increased by 2% to AED 907 million in Q1 2013, reflecting a higher DD&A rate in North America, due to future development costs, an amendment of reserves in the North Sea, offset by the impact of lower production in the North Sea.

Finance costs

Finance costs decreased by 1% to AED 1.3 billion in Q1 2012 to AED 1.2 billion in Q1 2013. The decrease was due to refinancing of debt at more favourable rates, partially offset by a small increase due to financing at Jorf Lasfar and Takoradi.

Profitability

Profit Before Tax was AED 445 million in Q1 2013, 68% lower year-on-year than AED 1.4 billion in 2012, due to lower revenues from Oil & Gas, principally due to lower production in the UK North Sea.

Income tax expense was AED 220 million for Q1 2013, compared to AED 724 million in Q1 2012.  This consists of AED 321 million of income tax expense and AED 101 million of deferred income tax income. The effective tax rate decreased slightly to 49% from 52% in the prior year, reflecting lower production in the UK North Sea. 

Profit for the period (after minority interests) was AED 106 million, a decrease of 80% compared to AED 534 million in 2012. The decline was principally driven by lower operating profit during the quarter and also reflects the disposals that were made in Q1 2012 which inflated the comparable period in the prior year.

Basic and diluted earnings per share attributable to equity holders of TAQA were AED 0.017, compared to AED 0.088 in the prior year period.

Financing

Total debt of AED 80.3 billion in Q1 2013 increased from AED 79.5 billion in the same period in 2012, following new bond issuance in anticipation of bond maturities in 2013.

Consolidated cash on hand, as at 31 March 2013, was AED 3.9 billion, a slight increase from AED 3.8 billion in 2012. As of 31 March 2013, TAQA had unused credit lines of AED 17.9 billion, compared to AED 14.7 billion at the 31 March 2012, and total available liquidity of AED 21.8 billion, compared to AED 19.9 billion. 

Operational Review

Power & Water

Key Performance Indicators

 

Q1 2012

Q1 2013

 

% +/-

Total revenues in AED million

(excl. supplemental fuel revenue & construction revenue)

 

1,898

1,851

 

▼2

% of overall revenues

(excl. supplemental fuel revenue & construction revenue)

 

40

44

 

▲4

Total generation capacity (MW)

Global

15,407

15,407

 

-

Domestic

12,494

12,494

 

-

International

2,913

2,913

 

-

Total power production (GWh)

Global

14,172

13,608

 

▼4

Domestic

9,075

10,243

 

▲13

International

5,097

3,365

 

▼44

Technical availability of power generation business (%)

Global

91.3

83.7

 

▼8

Domestic

90.8

84.2

 

▼6

International

93.4

80.1

 

▼13

Water desalination capacity (MIGD)

Total

887

887

 

-

Total water desalination (MIG)

Total

54,114

57,652

 

▲7

TAQA produced 13,608 Gigawatt hours (GWh) of electricity and 57,652 Million Imperial Gallons (MIG) of water in Q1 2013, compared to 14,172 GWh and 54,114 MIG of water during the same period in 2012, generating revenues of AED 1.9 billion, excluding construction and fuel revenues. The 2% decrease in revenues compared to the same period last year, reflects forced outages at Shuweihat 1, Jorf Lasfar and Red Oak. EBITDA fell by 3% to AED 1.4 billion and net income to AED 436 million.

Technical availability across the fleet was 83.7%, a decrease of 8% over the same period in 2012.  

Domestic

TAQA’s domestic portfolio of assets generated 10,243 GWh of electricity and 57,652 MIG of water during the quarter. Domestic availability was 84.9%, reflecting the forced outage at Shuweihat 1. Nonetheless, five of TAQA’s eight domestic plants had an Equivalent Forced Outage Rate (EFOR) lower than 1%, reflecting the modernity of the fleet.

Supplemental fuel revenues decreased as a result of less demand for back-up fuel at TAQA’s UAE domestic assets.

International

TAQA’s international power portfolio, which comprises of assets in Morocco, Ghana, India, Saudi Arabia, Oman and the United States, generated 3,365 GWh of power during the period. International technical availability was 80.1%, a decrease of 14% in comparison to the same period last year. This was due to a transformer failure and boiler leak at Jorf Lasfar, a rotor failure at Red Oak and a boiler failure at Neyveli.

In Morocco, the 700 megawatt (MW) expansion project at Jorf Lasfar continued to progress and was 80% complete at the end of the period. The expansion will bring the gross capacity of the Jorf Lasfar plant to 2,056 MW. The commissioning of the two expansion units is planned for the end of 2013 and early 2014.

.

In Ghana, the expansion of Takoradi 2 has broken ground and is continuing on time and on budget. The expansion will increase the plant’s output from 220 MW by 50 per cent to approximately 340 MW without requiring extra fuel or producing additional emissions. The expansion is scheduled for commissioning in the fourth quarter of 2014.

In January, TAQA acquired an interest in the developer of the 100 MW Sorang hydroelectric plant in the northern Indian state of Himachal Pradesh in a joint venture with Indian infrastructure company Jyoti Structures Ltd. The plant is expected to begin operations in 2013.

Also in January, the Republic of Turkey and the United Arab Emirates signed an Intergovernmental Agreement for the development of power plants and associated mines in the Afsin-Elbistan region of Turkey. The agreement marked the start of exclusive negotiations between TAQA, Turkey’s Electricity Generation Co. Inc. (EÜAŞ) and the Turkish Government for the project, with a combined power generation capacity of up to 7,000 MW.

Oil & Gas

TAQA’s Oil & Gas business comprises a portfolio of assets across North America, the UK North Sea, the Netherlands and Kurdistan region of Iraq.

Key Performance Indicators

 

Q1 2012

Q1 2013

 

% +/-

Total revenues in AED million

 

2,886

 

2,396

 

▼17

% of overall revenues

(excl. supplemental fuel income)

 

60

 

56

 

▼4

Total production

(mboe/day)

Global

134.2

 

126.9

 

▼5

North America

86.3

 

88.7

 

▲3

UK

41.0

 

28.8

 

▼30

Netherlands

6.9

 

9.4

 

▲36

Average net realized price of crude oil sold

(US$ per barrel)

North America

84.74

 

73.85

 

▼13

UK

117.74

 

113.56

 

▼4

Netherlands

113.07

 

102.02

 

▼10

Average net realized price of natural gas sold

(US$ per thousand feet)

North America

2.57

 

3.38

 

▲32

UK

10.47

 

12.29

 

▲17

Netherlands

10.69

10.59

 

▼1

Total Oil & Gas revenues, including gas storage and other operating revenues, were AED 2.4 billion for Q1 2013, a decrease of 17% on last year. This was driven primarily by lower production in the UK North Sea, due to the shut-in of Cormorant Alpha in January 2013, following a hydrocarbon release in one of the concrete legs of the platform. There was a subsequent release in March within the same platform leg. While no hydrocarbons have entered the environment, Cormorant Alpha production of between 8,000 to 10,000 barrels a day continues to be shut-in.

While North American gas prices have risen significantly during the period, up 32% year on year to US$3.38 per thousand cubic feet (mcf), liquids and oil prices have fallen, impacting performance. In addition, TAQA divested a portfolio of non-core North American acreage in Q1 2012, slightly skewing the year on year comparative figures.

Operating expenses were AED 992 million in Q1 2013 compared with AED 812 million in Q1 2012, an increase of 22% due to expenditures related to subsea repairs in the UK North Sea, higher fuel costs and higher lifting and processing expenses.

Total average global daily production for Q1 2013 decreased to 126.9 thousand barrels of oil equivalent per day (mboed), compared with 134.2 mboed in the same period last year, a fall of 5%, due to the unplanned shut downs in the UK North Sea, the disposal of non-core acreage and the shut-in of uneconomic production in North America.

North America

In North America, an average of 88.7 mboed was produced during Q1 2013, an increase of 3% year on year. Revenues increased by AED 62m to AED 1 billion, due to higher production and higher gas prices offset by lower realised prices for oil and liquids. Due to a supply imbalance, there was a significant discount during the period between Western Canadian Select (WCS) and West Texas Intermediate (WTI) prices.

UK

Production volumes in the UK North Sea averaged 28.8 mboed during the first quarter of 2013, a 30% decrease compared to the same period last year, largely due to the unplanned shutdowns at Cormorant Alpha and the consequent impact on production.

In February 2013, TAQA announced that it had discovered two oil columns during the Darwin drilling programme, which commenced in November 2012. The Darwin acreage is located next to the TAQA-operated Cormorant South, North Cormorant and Pelican fields in the Northern North Sea approximately 130 km northeast of the Shetland Islands.

Netherlands

Production in the Netherlands increased to 9.4 mboed, 36% higher than the same period last year. This was mainly due to the acceleration of Groet-Oost production near Alkmaar and a strong performance from the P15 and P18 and offshore partner-operated fields, as well as higher well rates at L11-A08.

Iraq

TAQA commenced operations at its Atrush block in the Kurdistan region of Iraq and is currently drilling its third well, Atrush 3.

Energy Solutions

During the period, TAQA Energy Solutions agreed to buy a 50% interest in the 205.5 MW Lakefield wind project located in the Midwestern United States from a subsidiary of France-based utility Electricite de France SA (EDF). TAQA also commenced a pilot project for roof-top solar air-conditioning in the UAE with Chromasun Inc. the California-based solar panel manufacturer.

In February TAQA began qualifying companies for participating in the engineering, procurement and construction (EPC) contract tender for the UAE’s first waste-to-energy plant. The waste-to-energy power plant will receive approximately 1,000,000 tonnes of municipal solid waste a year and convert it into 100 megawatts of alternative power, enough energy to power more than 20,000 households in Abu Dhabi. The plant is expected to begin operations in 2016/17.

Commodity price environment

Following the decline witnessed in Q4 2012, oil prices remained relatively stable during Q1 2013 with Brent averaging $112.89/bbl and WTI averaging $94.30/bbl. Whilst marginally lower than the comparable period in 2012, the oil price continues to be supported by Asian demand which has offset the continued weak economic environment in Europe and North America.

Encouragingly, Q1 2013 continued to witness the trend for improving natural gas prices in North America. NYMEX spot gas prices averaged $3.49/mmbtu in Q1 2013 compared to $2.50/mmbtu. This stabilisation and recovery in the gas price has been driven by a more controlled supply environment coupled with strong demand, the result of a prolonged winter.

Post-period corporate developments

TAQA extended its agreement with The Center for Waste Management – Abu Dhabi, to study and develop a waste-to-energy demonstration facility at Abu Dhabi’s Dalma Island. 

In April 2013, TAQA received UK Government approval for its Cladhan field development. The initial phase of development will consist of two producer wells and one injection well. Cladhan is expected to produce over 17 mboed initially, with first oil expected Q1 2015. The production will be tied back to TAQA’s Tern Alpha platform which lies 17.5km northeast of the Cladhan field.

On the 30 April 2013, Standard & Poor’s announced that it was raising TAQA’s A rating to a ”positive” outlook.

- ENDS -

For further information:

TAQA Investor Relations, Abu Dhabi

Tanis Thacker, Head of Investor Relations
+971 2 691 4933

Mohammed Mubaideen, Investor Relations Manager
+971 2 691 4964
firstname.surname@taqaglobal.com

TAQA Media Relations, Abu Dhabi

Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com 

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

Cormorant Alpha update
06 May 2013
TAQA today issued an update regarding the situation at the Cormorant Alpha platform in the UK North Sea:

TAQA today issued an update regarding the situation at the Cormorant Alpha platform in the UK North Sea:

After two hydrocarbon releases within a leg of the Cormorant Alpha platform in January and March, TAQA has accelerated a long-term inspection, repair and maintenance programme that has been under way since 2011.

Production on the platform was initially expected to continue throughout the programme, but after the releases, which involved no leak of hydrocarbons to the external environment, TAQA has decided  to continue the shut-in of Cormorant Alpha’s production while the programme progresses. Thanks to this inspection programme being in progress prior to the releases, TAQA was able to respond immediately, addressing the issues quickly and effectively.

There is still substantial work to be performed in the platform legs.  This will take months to complete. TAQA will provide an update on the outlook for resuming production at Cormorant Alpha when this work has progressed further.

Leo Koot, Managing Director of TAQA’s UK oil and gas business, said: “We are committed to investing in our infrastructure to ensure that production continues and export hub facilities are maintained. Cormorant Alpha is a critical piece of infrastructure for the continued viability of the Northern North Sea and this planned programme of work will help extend its original design life and support the long term security of UK energy supply. There is potentially one billion barrels of oil behind Cormorant Alpha and, although our production may be affected over the next few months, this work is critical to ensure the long term future of the northern North Sea.”

As well as handling 10,000 barrels per day of production from the South Cormorant field, the Cormorant Alpha platform is the conduit for the Brent System Pipeline, which carries approximately 90,000 bpd of oil, or approximately 10 % of the UK’s oil production. The Brent System Pipeline is unconnected to the pipework involved in the inspection, repair and maintenance programme and continues to operate normally. However, although no closure of the Brent System Pipeline is planned as part of this inspection, repair and maintenance programme, it has been and could in future be subject to temporary closure on a precautionary basis should this be required during this programme of work. 

As part of TAQA’s ‘make it safe, make it work, make it grow’ strategy, the company has invested more than £300 million on maintenance and upgrades across four northern North Sea platforms since their acquisition in 2008. This investment has improved the quality of the infrastructure, helping to double production and secure hundreds of jobs in Aberdeen.

-ENDS -

Government approval for TAQA’s Cladhan field development plan
24 Apr 2013
TAQA today announced that the development plan for its Cladhan field has been approved by the UK government.

TAQA today announced that the development plan for its Cladhan field (Blocks 210/29a and 210/30a of the northern North Sea) has been approved by the UK government.

The initial phase of development will consist of two producer wells and one injection well.  Cladhan is expected to produce over 17,000 boe/d initially with first oil expected Q1 2015. The production will be tied back to TAQA’s Tern Alpha platform which lies 17.5km northeast of the Cladhan field.

Leo Koot, Managing Director of TAQA’s UK business, said: “The Cladhan development is the third field that TAQA has developed and the largest project to date. Developing Cladhan as a tie back to Tern supports TAQA's strategy to invest in our infrastructure as we recognise the crucial part it plays in allowing us to maximise recovery from the northern North Sea.”

TAQA currently has 40.1% in the Cladhan field but recently agreed to acquire further equity from Sterling Resources (UK) Ltd. (“Sterling”) in return for providing further funding arrangements to Sterling to take the project through the development phase. The agreement is structured so that equity is transferred to TAQA in a series of tranches with the result that if Sterling cannot secure other finance for the project before 30 June 2013, TAQA will acquire a further 12.6% equity in the Cladhan Field. In addition, 11.8% of Sterling’s remaining equity will be transferred to TAQA until such time as the costs which TAQA will carry on the 11.8% equity are repaid from production revenue. Assuming such repayment does occur, the resulting equities in the Cladhan field will be TAQA 52.7%, Sterling 13.8% and Wintershall 33.5%.

- ENDS-

President of Ghana inaugurates TAQA power plant expansion
09 Apr 2013
TAQA celebrated the ground-breaking ceremony of the Takoradi 2 power plant expansion project in Ghana. Once complete, the plant will account for approximately 15 per cent of Ghana’s generation capacity, providing power to more than a million people.

Takoradi, Ghana - TAQA, the global energy company based in Abu Dhabi, celebrated the ground-breaking ceremony of the Takoradi 2 power plant expansion project in Ghana. Once complete, the plant will account for approximately 15 per cent of Ghana’s generation capacity, providing power to more than a million people.

The ground-breaking ceremony was held in Takoradi in the presence of John Dramani Mahama, the President of Ghana; Emmanual Armah-Kofi Buah, Minister of Energy of Ghana; Khalid Al-Ghaith, Assistant Foreign Minister for Economic Affairs for the United Arab Emirates; and Nananom (local Chiefs). 

Addressing guests during the ground-breaking ceremony held at Takoradi power plant, John Dramani Mahama, the President of Ghana said: “The Takoradi 2 expansion project reflects our energy for growth programme aimed at increasing investments in the energy sector to build capacity for the future. The role of independent power producers has become vital and the partnership of TAQA and VRA has demonstrated that Public-Private-Partnerships (PPP) work in Ghana. The plant’s excellent record of over 95% availability since 2000 is not only a demonstration of the successful implementation of the PPP framework but also the significant development of technology capacity of Ghana.

During his speech, Khalid Al-Ghaith, Assistant Foreign Minister for Economic Affairs for the United Arab Emirates, said: “We are encouraging investments in Africa and will continue to back our sovereign companies such as TAQA. We look forward to strengthen the relationship between Ghana and UAE and look forward to seeing more official visits and further agreements.

Carl Sheldon, Chief Executive Officer at TAQA, said: “The Takoradi 2 power plant expansion project builds on TAQA's position as a trusted operator of strategic energy infrastructure in Ghana. By deploying a world-class combined cycle turbine in Takoradi, we are helping Ghana to meet its growing energy needs while increasing the efficiency of the electricity generation system."

The expansion project supports the Ghanaian Government’s efforts to develop the country’s electricity sector and promote the use of indigenous natural gas supplies. When completed, the expansion will increase the plant’s output from 220 megawatt (MW) by 50 per cent to approximately 340 MW without requiring extra fuel or producing additional emissions. In 2011, TAQA and VRA upgraded the plant from burning imported oil to primarily burn natural gas.

TAQA acquired a 90 per cent share in the Takoradi 2 plant in 2007. The Volta River Authority (VRA), the main generator of electricity in Ghana, holds the remaining 10 per cent. TAQA is operator of the facility.

TAQA obtained Ghanaian government approvals last year and completed the project financing arrangements in January 2013. The expansion, being built by Mitsui & Co (Japan) and KEPCO E&C (Korea), is scheduled for commissioning in the fourth quarter of 2014.

The financing is being provided by the International Finance Corporation (IFC), a member of the World Bank Group, and a consortium of international development finance institutions led by FMO. The lenders participating in the consortium include the African Development Bank, Deutsche Investitions-und Entwicklungsgesellschafte, Emerging Africa Infrastructure Fund, ICF-Debt Pool and Proparco. The Opec Fund for International Development and the Canada Climate Change Program are participating alongside IFC.

TAQA's is the largest independent power producer in the Middle East North Africa region, with a total gross power generation capacity of 16,395 MW and a water desalination capacity of 887 Million Imperial Gallons per Day (MIGD).

Takoradi 2 is TAQA’s second expansion project in Africa following the USD 1.6 billion expansion of the company’s Jorf Lasfar power plant in Morocco.

- ENDS -

TAQA, CWM Abu Dhabi to develop Dalma Island waste-to-energy demonstration facility
01 Apr 2013
TAQA and The Center for Waste Management – Abu Dhabi (CWM) have extended their partnership by signing a Collaboration Agreement to study and develop a waste-to-energy demonstration facility at Abu Dhabi’s Dalma Island.

Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, and The Center for Waste Management – Abu Dhabi (CWM) have extended their partnership by signing a Collaboration Agreement to study and develop a waste-to-energy demonstration facility at Abu Dhabi’s Dalma Island.

TAQA and CWM will together develop a waste-to-energy facility that produces 1 to 2 megawatt of alternative energy. This will be enough to supply power to more than 200 households as well as providing a more efficient waste management solution. Waste from Dalma Island, which lies 32 kilometers offshore Abu Dhabi´s Western Region, is currently shipped to the mainland and further transported by road to landfills in Abu Dhabi.

Dr. Salem Al Kaabi, CWM’s Deputy Manager, commented, “Working on advanced solutions for waste management is a valuable part of the job we have in ensuring Abu Dhabi becomes recognized for its integrated waste management system within the UAE and beyond. Working with TAQA helps us develop new ideas and technologies in the energy space from which we can all benefit.”

Dr. Saif Al Sayari, Executive Officer and Head of TAQA’s Energy Solutions division, said: “As an Abu Dhabi energy company, we have a duty and responsibility to support our local communities and environment. We are delighted to extend our partnership with the Center for Waste Management Abu Dhabi and contribute to more efficient waste treatment for Dalma Island’s community. We consider this demonstration plant a practical first step to capture lessons learned during construction and operation phases and benefit our announced large scale project to convert a million ton of municipal solid waste per year into 100 MW of alternative power. 

TAQA’s and CWM teams have started conceptual studies for different WTE technical schemes to ascertain the best form of energy recovery from Dalma Island’s waste, which includes household and organic waste.

TAQA and CWM are also developing a large scale waste-to-energy plant in Abu Dhabi and last month started the qualification process for the engineering, procurement and construction (EPC). The plant will convert up to 1,000,000 tonnes of municipal solid waste a year into 100 megawatts of alternative power, enough energy to power more than 20,000 households in Abu Dhabi. The plant will be the first in the UAE and is expected to begin operations in 2016/17.

- ENDS -

TAQA’s Oil & Gas appoints Director of New Ventures in Abu Dhabi
01 Apr 2013
TAQA has appointed Saeed Saad Al-Menhali as Director - New Ventures for the company’s oil & gas business stream

Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, has appointed Saeed Saad Al-Menhali as Director - New Ventures for the company’s oil & gas business stream.

A UAE national with over 15 years’ experience in the industry,  Mr Al-Menhali will be responsible for pursuing new oil & gas ventures and partnerships with a focus on developing TAQA’s operating position in the Middle East and North Africa (MENA) region.

Mr Al-Menhali joins TAQA from Mubadala Development Company where he managed the exploration & technical development team for the company’s oil & gas unit.

David Cook, Executive Officer and Head of Oil & Gas at TAQA, said: “Saeed’s extensive experience in the oil & gas industry, and his knowledge of the region, will prove to be invaluable to TAQA. I am delighted to welcome Saeed to the team and look forward to working closely with him in his new role.”

Mr Al Menhali holds a Bachelor's degree in Geoscience from Tulsa University, United States and an Honorary Doctorate of Philosophy for Carbonate Geophysics from the Carbonate Research Collaborative of ExxonMobil’s Upstream Research Institute in the United States.

Mr Cook added: “As an Abu Dhabi Government related entity, we fully recognize our responsibility to recruit, develop and retain Emiratis at all levels in our company.”

TAQA’s Emiratisation programme consists of an aggressive and multi-disciplined strategy to recruit and develop UAE nationals from graduate trainees to skilled professionals. The company offers UAE nationals a unique opportunity to gain world-class global operating experience across TAQA’s expanding international portfolio including Canada, UK, Ghana, Morocco, India, the Netherlands, USA, Iraq and the UAE.

TAQA's oil & gas business stream includes exploration, development, production, and midstream activities in Canada, the UK, the Netherlands, the United States and Iraq. TAQA has a focused portfolio with 599.6 mmboe of proven and possible reserves as at 31 December 2012 and an average daily production of 135.4 thousand barrels of oil equivalent per day in 2012.

- ENDS -

Contact Information for Media:

Abu Dhabi

Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

Customers Gas Storage Bergermeer appointed on the board of the Gas Foundation
14 Mar 2013
On March 14, 2013 TAQA held the first meeting of the Gas Foundation, representing all customers of Gas Storage Bergermeer. During this first meeting representatives of Statoil, VattenFall and EdF were appointed on the Board of the Gas Foundation.

The Gas Foundation is the formal legal title holder of the stored working gas of all Standard Storage Services Agreement (SSSA) customers, and ensures that customers in case of a default of TAQA can have access to their gas.
The foundation is governed by the customers of Gas Storage Bergermeer.

Gas Storage Bergermeer currently has Standard Storage Services Agreements in place with twelve customers.

TAQA Full Year 2012 Results
13 Mar 2013
TAQA today reported its full year 2012 operational and financial results.

Abu Dhabi, United Arab Emirates - Abu Dhabi National Energy Company PJSC (“TAQA” - ADX: TAQA), the global integrated energy company; today reported its full year 2012 operational and financial results.

2011

2012

% +/-

Total assets

114,693

122,590

▲7

Total revenues

24,187

27,785

▲15

         Power & Water (1)

7,436

8,536

▲9

Construction revenue

 

3,589

-

         Oil & Gas (2)

11,983

12,015

-

Fuel revenue

4,768

3,645

▼24

Cost of sales (3)

(15,625)

(16,341)

▲5

Construction costs

 

(3,513)

-

EBITDA

14,008

13,132

▼6

Profit Before Tax

4,118

3,544

▼14

Net profit After Minority Interests

744

649

▼13

Basic earnings per share (AED)

0.12

0.11

▼8

Net Debt/EBITDA (times)

5.0

5.8

▲15

Net debt to capital (%)

78

78

-

All amounts in AED million unless otherwise stated

(1) Excludes fuel revenue and construction revenues but includes net liquidated damages in relation to Shuweihat 2 in 2011. Also includes certain other operating revenue relevant to the Power & Water business.

(2) Includes gas storage plus certain other operating revenue relevant to the Oil & Gas business.

(3) Excluding construction costs

Summary

TAQA delivered a resilient financial performance in 2012, reporting a 15 per cent increase in revenues underpinned by an outstanding performance in the power and water sector.

The company continues to report a solid financial performance while positioning itself for future growth with several large scale strategic energy infrastructure projects under construction.

Net profits dropped by 13 per cent in the 12 months to December 2012, reflecting a series of one-off items and a challenging price environment in North America.

In Power & Water, TAQA delivered a strong operational performance with very high availability and low forced outage rates, firmly placing it among the top performers globally. Its organic expansion plans are also progressing apace, with Jorf Lasfar Units 5 & 6 now 80% complete and on budget.  Similarly, the expansion project at Takoradi, Ghana, is now under way with all approvals secured and construction in progress.

TAQA also entered in to two new markets during the year, having signed a Memorandum of Understanding with EÜAŞ, the Turkish national power company, in respect of a major project in Southern Turkey, and investing in a 1,000 MW power plant in Sulaymaniyah in the Kurdistan region of Iraq.

In the UK North Sea, despite some operational challenges, including unplanned shutdowns which impacted performance, TAQA benefited from the buoyant Brent oil price and a number of acquisitions during the year. The most significant being the agreement to acquire from BP a range of assets in the Central North Sea, together with associated subsea infrastructure. 

To help address the on-going weak market conditions for natural gas in North America, non-core North American acreage was sold, new acreage was acquired in TAQA’s core production region and uneconomic production shut-in. In the last quarter of 2012, natural gas prices recovered somewhat and have maintained an upward trend since.

Reflecting TAQA’s broader focus on the MENA region, it acquired a majority stake in the Atrush exploration block in the Kurdistan region of Iraq – its first operated oil and gas asset in MENA.

During the course of 2012, TAQA completed several landmark financing transactions, including its maiden Sukuk issuance, and the largest non-sovereign US$-denominated issuance from MENA in 2012.

Comment

Carl Sheldon, Chief Executive Officer of TAQA, said:

"This was a resilient set of results, supported by the exceptional performance of our power business, where we have not only delivered a strong operational performance, but have also made significant progress with key organic growth projects in Morocco and Ghana. We have also expanded our footprint into two new markets: Turkey and Iraq, and are now firmly established as the regional development partner of choice.

“While we have continued to endure a tough pricing environment in North America, there is reason for some optimism, as prices have recovered from their low point and more positive pricing momentum has been sustained through the last quarter of 2012 and first quarter of 2013. Nonetheless, we have taken decisive action to restructure our North American business, shutting in uneconomic production, selling non-core acreage, and refocusing investment capital. Similarly, in the UK, our pending acquisition of assets from BP will not only give us attractive production, but will also diversify our production footprint into a new region of the North Sea. These steps position us well for the future.

Stephen Kersley, Chief Financial Officer, said:

“One of TAQA’s key achievements during the year was to secure long term financing at very attractive prices – both on a corporate level, as well as at our key projects, such as Jorf Lasfar and Takoradi. We are committed to proactively managing our financing needs to ensure that we have the most appropriate capital structure to underpin our future profitability.”

Financial summary: 2012 versus 2011

Revenues and costs

Total revenues for 2012 were AED 27.8 billion, 15% higher year-on-year, compared with total revenues of AED 24.2 billion in 2011. Cost of sales, excluding construction expenses, were AED 16.3 billion in 2012, an increase of 5%.

Power & Water

Power & Water revenues, excluding supplemental fuel and construction revenues, grew by 9% to AED 8.5 billion from AED 7.4 billion in 2011. The increase in revenues was driven by greater available capacity from the Shuweihat 2 plant, which commenced phased operations in July 2011, combined with continued high levels of technical availability across the entire fleet. Construction revenues from the Jorf Lasfar 5 & 6 and Takoradi projects of AED 3.6 billion were offset by construction costs of AED 3.5 billion, leaving a profit margin of AED 76 million.

Supplemental fuel income decreased 24% year-on-year to AED 3.6 billion, due to significantly lower use of alternative fuel supplies at TAQA’s domestic power plants.

Operating expenses for Power & Water (which excludes fuel costs and construction costs) were flat year on year at AED 2.0 billion. Depreciation, Depletion and Amortisation (“DD&A”) expenses for Power & Water were AED 1.8 billion in 2012 compared with AED 1.6 billion in 2011, principally due to Shuweihat 2.

Oil & Gas

Total Oil & Gas revenues (including gas storage and other income) were stable at AED 12.0 billion for 2012. This was driven by lower production across all our producing regions and continued weak North American gas prices, offset by higher sales at Bergermeer, which saw other operating revenue grow by AED 357 million.

Oil & Gas expenses rose from AED 3.6 billion in 2011 to AED 5.0 billion in 2012, principally due to stock movements (AED 829 million), and higher repair and maintenance costs in the UK, mainly due to the Otter acquisition. Oil & Gas DD&A expense was flat at AED 3.7 billion in 2012.

Finance costs

Finance costs increased from AED 4.6 billion in 2011 to AED 5.0 billion in 2012, an increase of 10%. The increase was due to interest on the Malaysian Sukuk issued in March 2012 and the USD bonds issued in end of 2011. The new fixed term debt replaced short term bank loans that carried significantly lower interest rates.

Profitability

Profit Before Tax was AED 3.5 billion in 2012, 14% lower year-on-year than AED 4.1 billion in 2011, due to lower revenues from Oil & Gas, principally due to lower North American gas prices and higher finance costs as outlined above.

During 2012, TAQA rationalised its portfolio to focus on its core operations and footprint. In April, TAQA’s holding in Tesla Motors was sold for a total consideration of AED [956] million, recognising a gain of AED [415] million. In North America, and in line with its stated strategy, TAQA disposed of various non-core assets for AED [1.8] billion, recognising a gain on disposal of AED [380] million.

Income from Associates and Joint Ventures fell by 48% to AED 151 million. The decline was principally driven by the performance of Sohar Aluminium Company which was impacted by falling aluminium prices.

Income tax expense was AED 2.2 billion for 2012 compared to AED 2.5 billion in the prior year. The effective tax rate remained unchanged at 62%, and reflects the higher tax rate environment, in particular within the UK North Sea. 

Profit for the period (after minority interests) was AED 649 million, a decrease of AED 95 million compared to AED 744 million in 2011. The decline was principally driven by lower operating profit, offset in part by the gains recognised on assets disposal conducted during the period.

Basic and diluted earnings per share attributable to equity holders of TAQA of 11 fils.

Financing

Total debt of AED 79.5 billion in 2012 increased from AED 73.9 billion in 2011, following new bond issuances during 2012 in anticipation of bond maturities in 2013.

In line with its funding strategy, TAQA completed several landmark financing transactions during 2012. At the start of the year, it successfully completed a MYR 650 million Sukuk issuance as part of MYR 3.5 billion Sukuk programme established in 2011. The programme also provides TAQA with an important source of long term, diversified funding.

In December, TAQA completed a landmark US$ 2.0 billion dual tranche bond, the largest non-sovereign US Dollar denominated issue for the MENA region in 2012. It also secured the lowest coupon ever achieved by TAQA for five and ten year funding of 2.5% and 3.625% respectively.

Finally, in December, a new US$ 2.5 billion dual tranche multi-currency revolving credit facility was signed.

Consolidated cash on hand as at 31 December 2012 was flat year on year at AED 3.8 billion. TAQA had unused credit lines of AED 20.3 billion at the end of 2012, compared to AED 14.2 billion at the end of 2011, and total available liquidity of AED 24.1 billion, compared to AED 18.0 billion for 2011.

Operational Review

Power & Water

TAQA’s Power & Water business performance continues to generate steady, stable cash flows, with a top-quartile performance for technical availability.

Key Performance Indicators

 

2011

2012

 

% +/-

Total revenues in AED million

(excl. supplemental fuel revenue & construction revenue)

 

7,436

8,106

 

▲9

% of overall revenues

(excl. supplemental fuel revenue & construction revenue)

 

38%

40%

 

▲2

Total generation capacity (MW)

Global

16,402

16,395

 

-

Domestic

12,494

12,487

 

-

International

3,908

3,908

 

-

Total power production (GWh)

Global

67,390

75,124

 

▲11

Domestic

48,087

55,275

 

▲15

International

19,303

19,849

 

▲3

Technical availability of power generation business (%)

Global

92.4

94.6

 

▲2

Domestic

93.0

95.2

 

▲2

International

90.0

91.4

 

-

Water desalination capacity (MIGD)

Total

887

887

 

-

Total water desalination (MIG)

Total

220,530

240,801

 

▲9

TAQA produced 75,124 GWh of electricity and 240,801 MIG of water in 2012, up from 67,390 GWh and 220,530 MIG of water during 2011, generating total revenues of AED 8.1 billion for the year. The 9% increase in revenues compared to the same period last year, reflects the full year contribution from Shuweihat 2 which had partial production from May 2011 and was fully operational in October 2011. This performance was carried through into EBITDA of AED 6.6 billion, an increase of 13% over 2011, and net income of AED 2.2 billion.

Technical availability across the fleet was high, at an average of 94.6%, an increase of almost 2% over 2011. Combined with a forced outage rate of only 2.1% in 2012, TAQA is operating in the top quartile of its peer group globally in terms of performance. In particular, the domestic UAE fleet recorded a very strong performance, with a forced outage rate of 2%, and four of the eight power plants recorded a forced outage of less than 1%. In respect of the international fleet, it had a forced outage rate of 3%, including at Jorf Lasfar – a strong performance given that a 4.5-5% outage rate represents top quality performance for coal-fired technology.

Domestic

TAQA’s domestic portfolio of assets generated 55,275 GWh of electricity and 240,801 MIG of water during 2012, reflecting the additional 1,500 MW of power generation and 100 MIGD of water desalination capacity of Shuweihat 2. Domestic availability was 94.6%.

Supplemental fuel revenues decreased as a result of less demand for back-up fuel at TAQA’s UAE domestic assets.

International

TAQA’s international power portfolio, which comprises of assets in Morocco, Ghana, India, Saudi Arabia, Oman, Iraq and the United States, generated 19,849 GWh of power during the year. International technical availability was 91.4%, slightly higher than the same period last year.

In Morocco, the 700 MW expansion project at Jorf Lasfar continued to progress well and was 80% complete at the end of the year. The expansion will bring Jorf Lasfar’s gross capacity to 2,056 MW. The commissioning of the two expansion units is planned for the end of 2013 and early 2014.

In June 2012, TAQA signed a US$ 1.4 billion equivalent, 16-year, multi-currency non-recourse project financing for the Morocco expansion. This was the first project financing in Morocco to be arranged in over a decade and the first major IPP financing in Morocco since the original Jorf Lasfar financing in 1997.

In Ghana, TAQA secured appropriate approvals for, and commenced construction of, the 110 MW expansion of Takoradi 2 in Ghana. The US$330 million financing for this expansion was a significant landmark, as it was the first IPP project financed in Ghana and the largest financing in sub-Sahara Africa during 2012. The TAQA-operated power plant currently represents 15% of Ghana’s installed power production capacity.

During the year TAQA signed a number of significant agreements to expand its power footprint in its core MENA and India region, including entering two new markets – Iraq and Turkey:

  • A joint venture agreement with Mass Global Investments Company Limited, through which TAQA acquired a 50% interest in a 1,000 MW gas-fired IPP situated near Sulaymaniyah, in the Kurdistan region of Iraq.
  • Acquisition of a 100 MW run of river hydro plant in the Himachal Pradesh region of India. The plant is TAQA’s first fully operated merchant facility and is expected to commence commercial operations by H1 2013.
  • In October, the Government of the Republic of Turkey and the Government of the Emirate of Abu Dhabi signed a joint declaration expressing their strong support for the co-operation between Turkey’s national power company EÜAŞ (Electricity Generation Co. Inc.) and TAQA. This is part of the long term commitment by the Turkish Government to deliver over 7,000 MW of thermal power from domestic resources.

Oil & Gas

TAQA’s Oil & Gas business comprises strong, well-resourced centres of excellence supporting a portfolio of assets with viable growth potential across North America, the UK North Sea and the Netherlands.

Key Performance Indicators

 

2011

2012

% +/-

Total revenues in AED million

 

11,983

12, 015

-

% of overall revenues

(excl. supplemental fuel income)

 

62

60

▼2

Total production

(mboe/day)

Global

139.1

135.4

▼3

North America

88.1

85.9

▼2

UK

42.9

41.8

▼3

Netherlands

8.1

7.7

▼5

Average net realized price of crude oil sold

(US$ per barrel)

North America

86.1

77.4

▼10

UK

112.2

111.9

-

Netherlands

99.0

104.3

▲5

Average net realized price of natural gas sold

(US$ per thousand feet)

North America

4.02

2.65

▼34

UK

9.28

10.40

▲12

Netherlands

10.63

10.63

-

Total Oil & Gas revenues, including gas storage and other operating revenues, were AED 12.0 billion for 2012, flat year on year compared with 2011. This was driven primarily by lower production and lower pricing – particularly in North America, where average net realized gas prices declined by 34%, offset by higher gas storage revenues.

Total average global daily production for 2012 decreased to 135.4 mboe/day, compared with 139.1 mboe/day in 2011, a fall of 3% due to the unplanned shut downs in the UK North Sea, the disposal of non-core acreage in North America and the shut-in of uneconomic production.

Reserves were replaced in excess of 100%. Total proven plus probable reserves at the end of December 2012 were 599.6 mmboe compared with 582.6 mmboe at the end of 2011.

North America

In North America, an average of 85.9 mboed was produced during 2012. In the face of continued low natural gas prices, unprofitable dry gas production was shut-in and operational costs and overheads were reduced.

A key aspect of this was a review of exploration acreage during the year to ensure the most efficient operating footprint. As a consequence, the North American project pipeline was slimmed down from over 60 to just 12 key projects, and outlying acreage in southeast Saskatchewan was divested, realising AED 1.8 billion.

Subsequently, AED 569 million was invested in acquiring assets in core production areas, adding 5,000 boed of production, larger reserves and important mid-stream assets, all at a very attractive price.

Furthermore, as a consequence of low gas prices, North American capex was cut by 30% in the 2013 investment plan, and has been focused on those opportunities which continue to be attractive at these low prices.

During the year, a major overhaul was undertaken at TAQA’s Crossfield plant, which has increased processing capacity from 48 mmcfd to 70 mmcfd and the efficiency rate to 97%. This investment will also allow us to process additional third party gas.

Despite the difficult pricing environment during the year, there has been a sustained uplift in prices towards the end of the year, with Henry Hub spot prices rising from US$2.81 on 1 September 2012 to US$3.42 on 31 December 2012. This positive trend has been continued post period.

UK

Production volumes in the UK North Sea averaged 41.8 mboe/day during the year, a 3% decrease compared to the same period last year, largely due to the unplanned shutdowns in the Otter field pipeline and North Cormorant.

During the year, a number of significant developments were announced, including:

  • In February, the acquisition of a 50% interest in licences that include the Darwin oil discovery, these are located next to the North Cormorant and Pelican fields.
  • In October, a new oil accumulation was discovered at the Contender prospect, which was drilled from the North Cormorant platform, with an early estimate of approximately 10-30 million barrels of oil in place. The field is being developed under the new name Cormorant East and commenced production in January 2013.
  • Furthermore, TAQA increased its stake in the Cladhan field, which is tied back to its Tern platform, and completed the Causeway tie-back to North Cormorant – this was TAQA’s first third party tie-back in the North Sea.
  • In November, TAQA announced an agreement to acquire a major portfolio of operated oil and gas assets from BP for more than US$1 billion, with an effective date for the majority of the assets of 1 January 2012. The acquisition consisted of interests in the Harding (70%), Maclure (37.03%), and Devenick (88.7%) fields in the Central North Sea. The acquisition also increases TAQA’s non-operated interests in the Brae area and associated transport infrastructure, including the SAGE, Forties-Brae and Forties-Braemar pipelines. These assets are expected to increase net production by 19 to 21 mboed in 2012-2013. In addition, this constitutes a second major development hub in the central North Sea, opening up further investment opportunities, such as infill drilling on Harding, the ability to unlock significant discovered gas resources together with other adjacent field owners, and the development of the Morrone field. This transaction is expected to close in the first half of 2013.

Netherlands

Production in the Netherlands averaged 7.7 mboe/day, a 5% decrease compared to the same period last year. Operations in the Netherlands maintained very high availability at the PGI facility in Alkmaar and completed a large turnaround on the P15 platform without incident.  TAQA also signed agreements to extend the operating life of the P15 platform until at least 2022. TAQA participated in a successful discovery on the F17 oil field with an estimated 30 mmboe of recoverable reserves.

A highlight for the year was receiving the final permits for the Gas Storage Bergermeer project and subsequently starting construction. More than 70% of the total working volume has now been sold under long-term storage contracts and the remaining capacity is intended to be offered annually based on short term storage contracts, with the first auction planned for autumn 2014. Commercial gas storage operations at Bergermeer are scheduled to start in 2014, with full capacity available in 2015.

Commodity price environment

In 2012, the WTI oil price remained largely flat year on year at an average of US$94.13/bbl for 2012, compared with US$95.11/bbl in 2011. Prices for Brent also remained fairly consistent, at an average of US$111.68/bbl in 2012 versus US$110.91/bbl in 2011. NYMEX gas prices for 2012 averaged US$2.83/mmbtu, in comparison to US$4.03 /mmbtu for the equivalent period in 2011.

During the fourth quarter, the oil price weakened with Brent prices declining by 6% and WTI prices by 5%. However, North American gas prices showed a more positive trend, with Henry Hub spot prices increasing by 22%, albeit from a very low level.

Energy Solutions

TAQA’s Energy Solutions business has global responsibility for developing alternative and advanced technology solutions for energy production and generation. Alternative energy generation projects include wind, solar, geothermal, and waste-to-energy, as well as unconventional fossil-fuel projects such as gas to liquids, shale gas and using CO2 for enhanced oil and gas recovery.

Its approach has been to leverage TAQA’s existing business footprint and resources, and is initially focused on those markets where it already has strong relationships, such as Abu Dhabi, Canada, Morocco and the Netherlands.

In June, TAQA joined forces with The Centre of Waste Management Abu Dhabi to evaluate the feasibility of developing one of the world’s largest waste-to-energy facilities in Abu Dhabi. This would divert up to one million tonnes of waste from landfill every year.

In September, TAQA became a member of the Abu Dhabi Sustainability Group (ADSG), which was established by the Abu Dhabi Environment Agency, with the support of the Executive Council of the Emirate of Abu Dhabi, to integrate sustainability into the Emirate’s economic and social development programmes.

TAQA agreed to buy a 50% interest in the 205.5 megawatt (MW) Lakefield wind project located in the Midwestern United States from a subsidiary of France-based utility Electricite de France SA (EDF). This project has the capacity to generate emissions-free electricity for more than 68,000 homes.

Post-period corporate developments

  • TAQA discovered oil in the new Darwin oil field in the Northern North Sea area near the Shetland Islands in Scotland.

- ENDS -

For further information:

TAQA Investor Relations, Abu Dhabi
Tanis Thacker, Head of Investor Relations
+971 2 691 4933

Mohammed Mubaideen, Investor Relations Manager
+971 2 691 4964
firstname.surname@taqaglobal.com

TAQA Media Relations, Abu Dhabi

Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA). TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

Gas Storage Bergermeer develops service for working gas as collateral
11 Mar 2013
11 March 2013, The Hague, The Netherlands – Abu Dhabi National Energy Company PJSC (TAQA) is pleased to announce it has executed Letters of Intent with Rabobank, ABN AMRO, Citi and BNP Paribas as the first banks to work together to develop a service whereby customers of Gas Storage Bergermeer can use their stored working gas as collateral for financing.

By signing the Letters of Intent the banks and TAQA made an important step in developing a framework allowing customers to make effective use of the value of their gas in store. Gas injected in the summer would be used as collateral for financing or would be the subject of repo arrangements until the gas is withdrawn in winter, improving the working capital position of customers. By having these industry leading banks on board, TAQA facilitates customer needs whilst allowing customers to work with the bank of their preference.

The final framework for this finance service is scheduled by end of 2013.

Adri Pols, Commercial Manager Gas Storage Bergermeer: “Gas Storage Bergermeer continuously searches for solutions to provide our customers maximum flexibility. Customers can already select their ideal contract tenor and pricing mechanism for primary capacity. And all available interruptible capacity will be sold daily. Customers can also trade their capacity on the secondary trading platform hosted by ENDEX. By developing this financing structure we will offer yet another benefit to current and future customers”.

With full commercial capacity available in 2015 Gas Storage Bergermeer will be the largest open access gas storage facility in Europe, providing 46TWh of seasonal storage.

TAQA starts process to restore Brent crude oil flows
07 Mar 2013
TAQA confirms that a hydrocarbon release was detected in one of the Cormorant Alpha platform legs in the northern UK North Sea.

Abu Dhabi, United Arab Emirates - Abu Dhabi National Energy Company PJSC (TAQA) has begun the process of restoring the flow of an estimated 80,000 barrels per day (bpd) of crude oil in the Brent pipeline system following a precautionary shutdown on Saturday 2 March.

The pipeline system, which is operated by TAQA and runs through the Cormorant Alpha platform, was halted after a small hydrocarbon release in one of the platform’s legs was detected. Investigations have found there is no connection between the Brent pipeline system and the pipeline involved in the release. The process of restarting Brent throughput follows a thorough technical evaluation that shows it is safe to do so without any increased risk to Cormorant Alpha.

The hydrocarbons released were contained within the platform leg and none entered the environment. The leak has now been contained with no further oil release.

Cormorant Alpha normally handles approximately 90,000 bpd of crude oil feeding the Brent pipeline system, including approximately 10,000 bpd in Cormorant Alpha production. Cormorant Alpha production remains closed while work on the platform leg continues.

There were 145 people on board Cormorant Alpha when the incident was discovered on Saturday. On Saturday, 71 non-core personnel left the platform.

Cormorant Alpha is operated by TAQA Bratani Ltd and is located 232 miles from Peterhead, Scotland and 94 miles from Lerwick in the Shetland Islands.

Contacts

Aberdeen
Sian Mutch
+44 1224 275564

Abu Dhabi
Allan Virtanen
+971 2 691 4850

Incident in Morocco
02 Mar 2013
TAQA confirms that an individual working at the Jorf Lasfar construction site in Morocco died on Friday morning.

Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, confirms that an individual working at the Jorf Lasfar 5+6 construction site in Morocco died on Friday morning.

The deceased was an employee of Daewoo, working under contract to the Jorf Lasfar Energy Company (JLEC) site, located 130 km south of Casablanca.

“This is a very sad time for us all. I extend my profound condolences to his family, friends and colleagues,” said Carl Sheldon, Chief Executive Officer of TAQA.

The family of the deceased has been informed.

TAQA, JLEC and Daewoo are conducting investigations into the incident and regulatory and government authorities have been informed.

There is no risk to public safety.

Media contacts

Morocco
Meryem Benzakour
+212 522 977 380

Abu Dhabi
Allan Virtanen
+971 2 691 4894
allan.virtanen@taqaglobal.com

TAQA invites companies to qualify for UAE’s first waste-to-energy plant
27 Feb 2013
TAQA, the global energy company based in Abu Dhabi, has invited companies to submit qualifications ahead of tendering the engineering, procurement and construction (EPC) contract for the UAE’s first waste-to-energy plant.

Abu Dhabi, United Arab Emirates – TAQA, the global energy company based in Abu Dhabi, has invited companies to submit qualifications ahead of tendering the engineering, procurement and construction (EPC) contract for the UAE’s first waste-to-energy plant.

The waste-to-energy power plant will receive approximately 1,000,000 tonnes of municipal solid waste a year and convert it into 100 megawatts of alternative power, enough energy to power more than 20,000 households in Abu Dhabi. The plant is expected to begin operations in 2016/17.

Waste-to-energy is one of the cleanest sources of energy and one of the most efficient ways to treat municipal solid waste. TAQA’s waste-to-energy facility is expected to reduce CO2 emissions by more than 1,000,000 tonnes per year when both the avoided landfill emissions and the avoided use of fossil fuel in power generation are taken into account.

The request for qualifications follows the completion of the pre-feasibility study and Memorandum of Understanding signed in June 2012 with The Centre of Waste Management Abu Dhabi for the joint development of the facility. TAQA expects to award the EPC contract in Q4 2013.

Dr Saif Al Sayari, Executive Officer and Head of the Energy Solutions division, commented, “Our track record in developing and operating power plants across the world, combined with our international relationships with joint venture partners and financial institutions, positions us well to lead the development of this pioneering project. We see this as a launch pad for future waste-to-energy projects in the region and for TAQA to be the pre-eminent developer and operator.”

Dr Al Sayari added: “The development of sustainable energy and waste infrastructure technologies, as well as diversion of waste from landfills, are goals identified in the Abu Dhabi Plan 2030. We are proud to work alongside the Government of Abu Dhabi and The Centre of Waste Management Abu Dhabi to provide a solution to the increasing volume of waste produced each year in the capital.”

TAQA has appointed Roger Anderson as Technical Manager for TAQA’s waste-to-energy plant. Mr Anderson has nearly 40 years’ experience at Wheelabrator, a leading global waste-to-energy developer. TAQA has also appointed Ramboll Group A/S to advise on engineering and WS Atkins PLC to advise on environmental permitting and waste characterisation. HSBC has been selected as financial advisor while Linklaters has been appointed legal advisor.

TAQA is the largest independent power producer in the MENA region, with power operations in seven countries and a total gross power generation capacity of 15,413 MW.

Suitably qualified companies interested in submitting qualifications can request the Request For Qualifications (RFQ) documentation by sending an e-mail to the following address before 12.00pm UAE time March 15 2013: wastetoenergy@taqaglobal.com

- ENDS -

Media contact information:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA
Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA scoops financing awards for Morocco, Ghana deals
18 Feb 2013
TAQA has been named winner of two awards in recognition of its contribution to financing energy infrastructure in Africa at the 14th Project Finance Magazine Awards event in London.

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) has been named winner of two awards in recognition of its contribution to financing energy infrastructure in Africa at the 14th Project Finance Magazine Awards event in London.

TAQA received the awards for:

  • Project Finance Power Deal of the Year – Africa 2012;
  • Project Finance Sponsor of the Year – Africa 2012 

Project Finance magazine’s Deal of the Year Awards recognise the best deals annually and are among the most prestigious awards in the finance industry. The awards are vetted by Project Finance Magazine journalists and independent industry contacts. On average, 300-350 deals are entered for the awards every year.

Stephen Kersley, TAQA’s Chief Financial Officer, said: “Last year was an exciting one for TAQA and for the project teams in particular as we continue to support the expansion of our global portfolio. We are honoured that our peers have recognised TAQA for these two landmark project finance achievements which could not of been accomplished without  the support of the Abu Dhabi government, the host governments and our valued partners.”

TAQA was awarded the ‘Project Finance Power Deal of the Year Award – Africa 2012’ for its USD 1.4 billion,16-year multi-currency non-recourse project financing for expanding the Jorf Lasfar power plant in Morocco. This was the largest international project financing in Morocco in over a decade. The loans for the expansion marked the first time that Japanese and Korean export credit agencies have participated in a Moroccan financing.

Jorf Lasfar already supplies 40 per cent of Morocco’s electricity output and the expansion project will further increase the power plant’s capacity by 50 per cent. TAQA and ONEE, the Moroccan utility, signed the first protocol agreement for the expansion in May 2009. Construction began in September 2010 and the two new units are scheduled to be commissioned in December 2013 and April 2014.

Project Finance also named TAQA ‘Project Sponsor of the Year – Africa 2012’ for the first project financing in Ghana. TAQA raised USD 330 million for expanding its Takoradi 2 power plant. Takoradi 2, the first Independent Power Project in Ghana, is a joint venture between TAQA (90%) and Ghanaian utility Volta River Authority (VRA) (10%). The project currently represents approximately 15% of Ghana’s installed capacity.

The expansion involves converting the existing 220 MW gas-fired plant into a combined cycle unit, increasing its output to 330 MW without requiring additional fuel. This represents an addition of 50% capacity without increasing carbon dioxide emissions. The plant was recently converted from primarily an oil-fired plant to one fuelled by natural gas as part of a considered effort within Ghana’s power generation industry towards cleaner-burning fuel. The expansion is scheduled for commissioning in 2015.

Frank Perez, Executive Officer and Head of Power & Water, said: “We are proud of this recognition of our achievements in developing and operating key national infrastructure in Africa. These deals prove that sophisticated international financing can be attracted at very competitive rates to a market that has a quality sponsor, with strong host government support and a good contractual framework. Our operational excellence and the vital role the Jorf Lasfar and Takoradi 2 power plants have played in delivering a reliable source of electricity to the population with an excellent safety record were key to TAQA being selected for these prestigious accolades.”

TAQA is the largest independent power producer in the Middle East North Africa region, with power operations in seven countries and a total gross power generation capacity of 15,413 MW .

- ENDS -

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA makes Northern North Sea oil discovery
17 Feb 2013
TAQA has discovered oil in the new Darwin oil field in the Northern North Sea area near the Shetland Islands in Scotland.

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) has discovered oil in the new Darwin oil field in the Northern North Sea area near the Shetland Islands in Scotland.

Leo Koot, the managing director at TAQA's UK oil and gas business, said: "This discovery proves that the North Sea still has great potential and that it is possible to unlock opportunity and produce growth through the use of cutting-edge technology and focused investment. This is an exciting and challenging opportunity and we look forward to repeating our success in safe and fast field developments."

In February 2012, TAQA acquired a 50% interest in the prospective exploration acreage known as Darwin, located south of the former NW Hutton Field. Two oil columns were discovered during the Darwin drilling programme, which commenced November 2012. One well has been suspended for the purpose of future well testing.

The Darwin acreage is located next to the TAQA-operated Cormorant South, North Cormorant and Pelican fields in the Northern North Sea approximately 130 km northeast of the Shetland Islands. The reserves potential of the Darwin oil discoveries, in conjunction with NW Hutton Field re-development, is currently being re-evaluated. TAQA is currently studying optimal development options.  Further appraisal drilling (including well testing) is anticipated prior to selection of a development concept.

TAQA has recently expanded its North Sea exploration programme with agreements to participate in several drilling campaigns and development projects. TAQA was also awarded a number of strategic licenses in the 27th North Sea oil and gas licensing round.

Last month, TAQA started first oil production from the Cormorant East field development in the UK North Sea which is expected to contain 10 - 30 million barrels of oil in place.

In a move to further expand its position in the North Sea TAQA agreed to buy from BP oil and gas assets worth more than USD 1 billion. The assets are expected to increase production by approximately 21,000 barrels of oil equivalent and provide a second major development hub in the central North Sea opening up further investment opportunities.

TAQA is the largest investor from the United Arab Emirates in the UK, having invested more than USD 4 billion in four years.

TAQA's UK portfolio consists of the Brae Area assets, Beinn and Braemar fields, as well as the SAGE pipeline and onshore terminal, and the Brae-Miller Linkline. It has 100% operated equity in the Tern, Kestrel, Eider, Cormorant North, South Cormorant, Falcon and Pelican Fields. It holds an interest in the Hudson field Sullom Voe Terminal. TAQA is also operator of the Brent Pipeline System.

- ENDS -

Contact Information for Media:

Aberdeen
Britta Hallbauer
Corporate Communications Manager
Tel +44 1224 275565
britta.hallbauer@taqaglobal.com

Abu Dhabi

Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA Preliminary Financial Results for FY 2012
06 Feb 2013
TAQA today reported its preliminary, unaudited financial results for the year ending 31 December 2012. These preliminary results are subject to changes that may result from the final determination of certain accounting estimates.

TAQA makes strong progress toward its strategic objectives

Revenues up 14%, net profit affected by commodity prices, UK tax charges

Abu Dhabi, UAE - Abu Dhabi National Energy Company PJSC (TAQA), the international energy company (ADX: TAQA), today reported its preliminary, unaudited financial results for the year ending 31 December 2012.

These preliminary results are subject to changes that may result from the final determination of certain accounting estimates.

Comprehensive, audited full year 2012 results are due to be published on 13 March 2013.

(AED million)

FY 2011 Actual

FY 2012 Preliminary

% change

Total assets

114,693

122,371

7%

Revenues

24,187

27,513

14%

Gross Profit

8,500

7,863

-7%

Net profit

744

640

-14%

Earnings per share (fils)

12

11

-8%

TAQA reported strong operational performance with top line revenue growth of 14% due to higher power and construction revenues offset by lower supplemental fuel revenues and oil and gas revenues. Overall gross profit declined by 7%, principally due to lower production and revenues in our oil and gas business, which was affected by weaker North American gas prices.

The increase in total assets was primarily due to the expansion of the Jorf Lasfar project in Morocco, the construction of the Gas Storage Bergermeer project in Netherlands, an advance payment towards the acquisition of BP’s interests in oil and gas assets in the Central North Sea and the acquisition of a 53.2% interest in the Atrush block in the Kurdistan region of Iraq. The increases were partially offset by divestments of certain non-core assets in Canada and the sale of our shares in Tesla Motors and WesternZagros.

Net profits declined by 14% partially due to a one-off charge restricting tax relief on decommissioning expenditures in the UK North Sea, lower North American gas prices and aluminium prices, a lower margin on back-up fuel at our UAE power stations and higher finance costs from new bond issues against repayment of maturing bonds. Partly offsetting these declines, we recognised a gain on divestments as described above and lower impairment charges in North America.

Comment

Carl Sheldon, Chief Executive Officer of TAQA, said:

“This was a year of significant strategic achievements for TAQA across our range of businesses that position us well for the future. We have made great progress against our strategic objectives of expanding our power business in the MENA region, entering Iraq and signing a Memorandum of Understanding with the Turkish Government to develop power production and associated assets in Southern Turkey. Our expansion projects at Jorf Lasfar and Takoradi have also continued apace. 

Our Oil and Gas business has also performed well, with a strategic acquisition in the UK North Sea securing the long-term future of what has historically been one of our most profitable geographies. The acquisition of the interest in the Atrush field in the Kurdistan region of Iraq is an excellent example of our growing maturity as an upstream operator and our tolerance for political risk in the Mena region. The start of construction of the gas storage facility at Bergermeer is a milestone and the team also completed a second successful open season for capacity in December.

TAQA is better positioned than ever to capitalise on the growth opportunities inherent in our businesses. Our extensive experience as an operator of complex energy assets, coupled with our strong financial position, gives us access to unique opportunities whilst continuing to optimise our existing activities.”

Corporate activity during 2012

During the 12 month period, TAQA completed the following corporate initiatives:

  • December: TAQA signs a US$2.5 billion Dual Tranche Multi-currency Revolving Credit Facility to finance its general corporate requirements.
  • December: TAQA successfully completes a US$2 billion dual tranche bond issue. The transaction was the largest non-sovereign US$-denominated issuance from the MENA region in 2012 and has secured the lowest coupons ever achieved by the company for 5-year and 10-year funding. The two tranches consisted of:
    • US$750 million five year bond at a yield to maturity rate of 2.609% (annual coupon of 2.5%)
    • US$1,250 million ten year bond at a yield to maturity rate of 3.696% (annual coupon of 3.625%)
  • September: TAQA becomes a member of the Abu Dhabi Sustainability Group (ADSG) which aims to integrate sustainability into the Emirate’s economic and social development programmes.
  • September: Edward LaFehr appointed President of TAQA North.
  • April: TAQA successfully completes the sale of all its holding in Tesla Motors for a total consideration of AED 956 million realizing a gain of AED 415 million.
  • February: TAQA successfully completes a MYR650 million Sukuk (c.US$215 million) issuance, as part of a MYR3.5 billion Sukuk programme established in November 2011.
  • January: Dr. Saif Al Sayari appointed as Executive Officer of Energy Solutions, responsible for developing TAQA’s alternative and technology - driven energy initiatives.

In addition to the above, TAQA achieved the following milestones during 2012:

Oil & Gas

  • December: TAQA  acquires a 53.2% interest in the Atrush block in the Kurdistan region of Iraq from General Exploration Partners, Inc., an affiliate of Aspect Holdings, LLC. The acquisition builds on the UAE’s strong bilateral bonds with Iraq and marks TAQA’s evolution into an oil and gas operator in the Middle East and North Africa.
  • November: TAQA disposes of its entire holding in WesternZagros Resources Ltd. for US$85 million.
  • November: In the UK North Sea, TAQA signs an agreement to purchase certain BP oil and gas assets worth more than US$1 billion. The acquisition, which is targeted to close in the middle of 2013, is expected to increase TAQA’s net production by approximately 21,000 barrels of oil equivalent per day (boe/d), and will add a second major development hub to TAQA’s UK North Sea business.
  • October: TAQA discovers a new oil accumulation by well 211/21-N94 known as the Contender prospect, in the UK Northern North Sea Block 211/22a.
  • September: TAQA acquires assets from NuVista bringing 5,000 bpd of production, ownership of mid-stream assets and growth opportunities.
  • May: TAQA receives unconditional approval from the Dutch Council of State for the development of the Bergermeer Gas Storage facility and commenced construction.
  • March: TAQA completes the disposal of US$600 million of non-core assets in southeast Saskatchewan, Canada

Power & Water

  • December: TAQA acquires an interest in Himachal Sorang Power Limited (HSPL), the developer of a 100MW hydroelectric plant in the northern Indian state of Himachal Pradesh.
  • October: A pre-feasibility study is completed and an investment model prepared for a major power project in the Afş‏in-Elbistan region of southern Turkey in co-operation with Electricity Generation Co. Inc. (EÜAŞ). The Government of the Republic of Turkey and the Government of the Emirate of Abu Dhabi signed a “joint declaration” for the co-operation between EÜAŞ and TAQA regarding investment in and optimisation of the existing lignite power plant in the Afş‏in-Elbistan region; the development of mines; and the establishment of new power plants in the same region.
  • July: TAQA secures the requisite parliamentary approval and signed financing arrangements for the 110 MW expansion of the gas-fired Takoradi 2 power plant in Ghana.
  • June: TAQA signs financing arrangements for US$1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700MW expansion of TAQA’s Jorf Lasfar coal-fired power complex in Morocco.

Energy Solutions

  • December: TAQA agrees to buy a 50% interest in the 205.5 megawatt (MW) Lakefield wind project located in the Midwestern United States from a subsidiary of France-based utility Electricite de France SA (EDF).
  • June: TAQA signs a Memorandum of Understanding with The Centre of Waste Management Abu Dhabi for the joint development of a 100MW Waste to Energy facility in Abu Dhabi by 2015/16.

Post-period items

  • TAQA completes the conditions for drawdown under the US$1.4 billion equivalent of 16-year, multi-currency non-recourse project financing for the 700 MW expansion of TAQA’s Jorf Lasfar coal-fired power complex in Morocco.
  • TAQA and its partner, Volta River Authority, complete the conditions for drawdown under the US$330 million financing for the expansion of the Takoradi 2 power plant in Ghana.

Comprehensive, audited full year 2012 results are due to be published on 13 March 2013.

– ENDS –

AmCham Abu Dhabi recognises TAQA for commitment to US - UAE relations
02 Feb 2013
TAQA has won the prestigious 2013 Falcon Award in recognition of its outstanding commitment to sustainable US - UAE business relations at the 3rd Annual AmCham Abu Dhabi Excellence Awards Gala charity event in Abu Dhabi.

Abu Dhabi, United Arab Emirates - Abu Dhabi National Energy Company PJSC (TAQA) has won the prestigious 2013 Falcon Award in recognition of its outstanding commitment to sustainable US - UAE business relations at the 3rd  Annual AmCham  Abu Dhabi Excellence Awards Gala charity event in Abu Dhabi.

Organised by the American Chamber of Commerce, the AmCham Abu Dhabi Annual Excellence Awards is a celebration of Abu Dhabi’s most distinguished companies, institutions, and entrepreneurs. These awards reflect the contributions of best-in-class American and Emirati individuals and organisations to business in the UAE and US - UAE commercial relations.

Dr Saif Al Sayari, TAQA’s Executive Officer and Head of Energy Solutions division, said: “We are honoured to receive this prestigious award which is testament to our long-term commitment and sustainable relations with our partners in the US. North America is a strategic market for TAQA and we are proud to contribute to the unwavering bilateral relationship between the US and the UAE.” 

The 2013 Falcon Award was presented to TAQA’s AbdulKhaliq Al Ameri, Director Of Knowledge Centre & Sub-Surface by United States Ambassador to the United Arab Emirates, His Excellency Michael Corbin.

TAQA has invested more than USD 8 billion in its North American assets and employs more than 1,000 people at its oil & gas operations in the states of Montana, North Dakota, Wyoming and in Canada where it produced more than 88,000 barrels of oil equivalent per day in 2011. TAQA also has an interest in a tolling agreement for the Red Oak power plant in New Jersey.

In January 2013, TAQA moved into the US renewable energy sector when it announced entering into an agreement to acquire a 50% interest in the 205.5 megawatt (MW) Lakefield wind farm located in Minnesota. The wind farm supplies more than 68,000 homes with emissions-free electricity and is a first step in the evolution of TAQA’s global strategy for alternative energy sources and gives TAQA a foothold in the fast-growing global wind market.

- ENDS - 


Contact Information for Media: 

Abu Dhabi
Taryam Al Subaihi
Head of External Relations 
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen 
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com  

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.  

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders. 

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.  

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA closes financing for Morocco power plant expansion
28 Jan 2013
TAQA has signed final agreements marking the close of the USD 1.4 billion equivalent project financing for the expansion of the Jorf Lasfar power plant in Morocco

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) has signed final agreements marking the close of the USD 1.4 billion equivalent project financing for the expansion of the Jorf Lasfar power plant in Morocco.

Jorf Lasfar is already the largest coal-fired power plant in the Middle East and North Africa and the first independent power producer (IPP) in Morocco, supplying 40 per cent of the Kingdom’s electricity output. The expansion project will increase its capacity by 700 megawatts (MW) to 2,056 MW.

The protocol agreement for the expansion was signed in 2009 by TAQA and Office National de l’Electricité et de l’Eau Potable (ONEE) in the presence of His Highness General Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and His Highness King Mohammed VI of Morocco. 

His Excellency Abdulla Saif Al-Nuaimi, Vice Chairman of TAQA, said: “This expansion project is a continuation of our commitment to Morocco, delivering critical national infrastructure and power to a growing economy. TAQA’s commitment to meet Morocco’s energy needs was not conditional on financing, as the project is already 80 per cent complete. But this financing shows that, for the right deal with the right structure, significant non-recourse funds can be attracted to the Middle East and North Africa at competitive rates.”

This is the largest international project financing in Morocco in over a decade and the first time Japanese and Korean export credit agencies have participated in Moroccan project finance.

Carl Sheldon, Chief Executive Officer of TAQA, said: “This is a landmark deal for Morocco and the region which has set a gold standard for financing large-scale infrastructure projects.”  

Majid Iraqui, Managing Director for TAQA in North Africa, said: “The expansion of Jorf Lasfar will increase Moroccan power generation capacity by more than 10 per cent and is vital to enabling growth and creating jobs in the economy. Construction is well advanced thanks to the strong support of the Moroccan government and the ONEE.”

The engineering, procurement and construction (EPC) contract for units 5 and 6 was awarded to Mitsui & Co (Japan) and Daewoo Engineering & Construction (Korea) in 2010. Separate EPC contracts for two coal unloaders and upgrades to the coal conveyors at the port of Jorf Lasfar were awarded to Cargotec (Sweden) and China Harbour Engineering Company in 2011. Construction work began in September 2010, with TAQA providing interim funding. The expansion is now approximately 80 per cent complete and overall costs remain within the USD 1.6 billion budget. The two new units are scheduled to be commissioned in December 2013 and April 2014. 

The lenders are providing financing for approximately 75% of the total project costs while TAQA is committing approximately USD 400 million of equity funding. The 16-year, multi-currency non-recourse debt, maturing in 2028, represents the equivalent of approximately USD 1.3 billion. Working capital and VAT facilities amount to the equivalent of approximately USD 100 million.

Banque Centrale Populaire (BCP), BNP Paribas, Société Générale and Standard Chartered Bank are the mandated lead arrangers for the credit facilities. Japan Bank for International Cooperation (JBIC), Nippon Export and Investment Insurance (NEXI) and Export-Import Bank of Korea (Korea Eximbank) are providing direct loans and loan guarantees for more than 50% of the total project debt. 

- ENDS -

Contact Information for Media:
Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.  

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.  

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA completes financing for Ghana power plant expansion
27 Jan 2013
TAQA and its partner, Volta River Authority (VRA), have completed the USD 330 million financing for the expansion of the Takoradi 2 power plant in Ghana.

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) and its partner, Volta River Authority (VRA), have completed the USD 330 million financing for the expansion of the Takoradi 2 power plant in Ghana.

The expansion project will convert the existing gas-fired plant into a combined cycle unit, increasing its output from 220 megawatts (MW) to approximately 330 MW without requiring additional fuel. This represents an addition of 50% capacity without increasing carbon dioxide emissions. The extra energy will be sold to VRA under the terms of a revised 25-year power purchase agreement. The plant was recently converted from primarily an oil-fired plant to one fuelled by natural gas as part of a considered effort within Ghana’s power generation industry towards cleaner-burning fuel.

The USD 330 million project financing is being provided by the International Finance Corporation (IFC), a member of the World Bank Group, and a consortium of international development finance institutions led by FMO, a development bank majority-owned by the Dutch government that supports sustainable private sector growth in emerging markets. The lenders participating in the consortium include the African Development Bank, Deutsche Investitions-und Entwicklungsgesellschafte, Emerging Africa Infrastructure Fund, ICF-Debt Pool and Proparco. The Opec Fund for International Development and the Canada Climate Change Program are participating alongside IFC.

Frank Perez, Executive Officer and TAQA’s Head of Power & Water said: “We are proud to have brought so many respected lenders together for this strategic energy project. This expansion will help Ghana’s growing population meet their energy needs and provide the power needed for economic growth.”

The Takoradi 2 plant is Ghana's first independent power project (IPP) and currently represents approximately 15% of Ghana’s installed capacity. The Takoradi 2 plant is also the first IPP in Ghana to utilise project financing. It is owned by Takoradi International Company, a joint venture between TAQA (90%) and VRA (10%), the main generator and supplier of electricity in Ghana. TAQA is the operator of the facility.

The engineering, procurement and construction contract with an approximate value of USD 260 million was awarded to a consortium comprising Mitsui & Co (Japan) and KEPCO E&C (Korea) in 2011. Construction started in 2012 following cabinet and parliamentary approvals by the Government of Ghana, and the signature of financing agreements in July 2012.  The expanded plant is scheduled for commissioning in 2015.

- ENDS -

Contact Information for Media:

Abu Dhabi

Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com 

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA confirms initial flows in Brent pipeline system
17 Jan 2013
TAQA confirms that initial flows of crude oil have resumed in the Brent pipeline system following a precautionary shutdown on Monday.

Abu Dhabi, United Arab Emirates - Abu Dhabi National Energy Company PJSC (TAQA) confirms that initial flows of crude oil have resumed in the Brent pipeline system following a precautionary shutdown on Monday.

The pipeline system, which is operated by TAQA and runs through the Cormorant Alpha platform, was halted after hydrocarbons were detected inside one of the platform’s legs. The process of restarting the Brent pipeline system followed a thorough technical evaluation and safety assessment.

The Cormorant Alpha platform normally handles about 90,000 barrels per day (bpd) of crude oil feeding the Brent pipeline system, including approximately 10,000 bpd of Cormorant Alpha production. Crude oil flows in the Brent pipeline system are expected to rise to approximately 80,000 bpd as other platforms in the Brent system return to normal operations.

Cormorant Alpha production remains closed while evaluations and work on the platform leg continues. The hydrocarbons released are fully contained within the Cormorant Alpha platform leg, and there has been no leak to the external environment. Work so far has mitigated the release and plans are being assessed for the repair of the affected line, which is not connected to the Brent pipeline system.

There were 159 people on board Cormorant Alpha when the release was discovered on Monday. On Tuesday, 92 non-core personnel left the platform and three specialists came aboard to help resolve the incident. All these people are accounted for and safe.

Cormorant Alpha is operated by TAQA Bratani Ltd and is located 232 miles from Peterhead, Scotland and 94 miles from Lerwick in the Shetland Islands.

Contacts Aberdeen
Britta Hallbauer
+44 1224 275 275
Lucy Buglass
+44 1224 737 645

Abu Dhabi
Allan Virtanen
+971 2 691 4850

TAQA confirms initial flows in Brent pipeline system
17 Jan 2013
TAQA confirms that initial flows of crude oil have resumed in the Brent pipeline system following a precautionary shutdown on Monday.

Abu Dhabi, United Arab Emirates - Abu Dhabi National Energy Company PJSC (TAQA) confirms that initial flows of crude oil have resumed in the Brent pipeline system following a precautionary shutdown on Monday.

The pipeline system, which is operated by TAQA and runs through the Cormorant Alpha platform, was halted after hydrocarbons were detected inside one of the platform’s legs. The process of restarting the Brent pipeline system followed a thorough technical evaluation and safety assessment.

The Cormorant Alpha platform normally handles about 90,000 barrels per day (bpd) of crude oil feeding the Brent pipeline system, including approximately 10,000 bpd of Cormorant Alpha production. Crude oil flows in the Brent pipeline system are expected to rise to approximately 80,000 bpd as other platforms in the Brent system return to normal operations.

Cormorant Alpha production remains closed while evaluations and work on the platform leg continues. The hydrocarbons released are fully contained within the Cormorant Alpha platform leg, and there has been no leak to the external environment. Work so far has mitigated the release and plans are being assessed for the repair of the affected line, which is not connected to the Brent pipeline system.

There were 159 people on board Cormorant Alpha when the release was discovered on Monday. On Tuesday, 92 non-core personnel left the platform and three specialists came aboard to help resolve the incident. All these people are accounted for and safe.

Cormorant Alpha is operated by TAQA Bratani Ltd and is located 232 miles from Peterhead, Scotland and 94 miles from Lerwick in the Shetland Islands.

Contacts

Aberdeen
Britta Hallbauer
+44 1224 275 275
Lucy Buglass
+44 1224 737 645

Abu Dhabi
Allan Virtanen
+971 2 691 4850

TAQA starts pilot for solar cooling technology in Abu Dhabi
14 Jan 2013
TAQA and Chromasun Inc., the California-based solar panel manufacturer, have begun a pilot project for roof-top solar air-conditioning in Abu Dhabi.

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) and Chromasun Inc. (Chromasun), the California-based solar panel manufacturer, have begun a pilot project for roof-top solar air-conditioning in Abu Dhabi.

TAQA installed 27 Chromasun Micro-Concentrator (MCT) solar panels on the rooftop of Abu Dhabi Transmission & Despatch Company (TRANSCO) in Abu Dhabi on 13 January 2013. The concentrated solar panels will provide clean renewable solar energy to the building’s air-conditioning system during peak demand hours. 

The Chromasun MCT technology is designed specifically for rooftop application and operation in high temperatures and dusty conditions, producing more energy per unit of roof area than many other technologies.

Dr Saif Al Sayari, TAQA’s Executive Officer and Head of the Energy Solutions division, commented: “We are delighted to see the Chromasun MCT technology being tested in the UAE. In addition to significant energy savings, roof top solar cooling technology has great potential for peak-shaving which will result in reduced emissions and better grid efficiency.”

David Copestake, Managing Director of TRANSCO said: “We continuously seek ways to use advanced technology to achieve better efficiency in Abu Dhabi’s power generation networks so we are immensely proud and honoured to be participating in such an initiative.”

TAQA is an investor in Chromasun and currently holds an 8% stake as part of its efforts to develop post-pilot phase alternative energy technologies with breakthrough potential. TAQA and Chromasun will test the technology during the next 16 months with the aim of proving its commercial viability.

-ENDS-

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations 
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.  

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders. 

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.  

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA expands in India with hydroelectric project
13 Jan 2013
TAQA has acquired an interest in Himachal Sorang Power Limited (HSPL), the developer of a 100 megawatt (MW) hydroelectric plant in the northern Indian state of Himachal Pradesh.

Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) has acquired an interest in Himachal Sorang Power Limited (HSPL), the developer of a 100 megawatt (MW) hydroelectric plant in the northern Indian state of Himachal Pradesh.

Construction of the Sorang hydroelectric project is 90% complete and the plant is expected to begin operations in 2013. It will be powered by the Sorang Khad, a river originating in the Himalayas, and will supply electricity to the northern states of India, a region currently facing power shortages. It uses run-of-the-river technology to convert the river’s natural water flow to electricity, eliminating the need for a reservoir.

The acquisition was made by TAQA Jyoti Energy Ventures Pvt. Ltd. (TAQA Jyoti), a joint venture with Jyoti Structures Ltd. (JSL), an Indian power infrastructure company. JSL signed a Memorandum of Understanding with TAQA in July 2011 to explore investment opportunities in the sector. TAQA already operates a 250 MW lignite power station in the Neyveli region of southern India.

Carl Sheldon, TAQA’s Chief Executive Officer, said: “This investment will both complement our existing power generation business in India and support TAQA’s nascent renewable energy stream. It also reflects our confidence in the Indian market.”

TAQA Jyoti has initially bought a minority stake in HSPL, which is owned by a consortium comprising NCC Infrastructure Holdings Ltd. and IL&FS Energy Development Company Ltd. Subject to the satisfaction of certain conditions precedent and compliance with applicable regulatory requirements, TAQA and JSL will progressively acquire 100% of the share capital of HSPL and jointly operate the plant. TAQA will hold a majority stake in the joint venture.

-ENDS-

Contact Information for Media: 

Abu Dhabi
Taryam Al Subaihi
Head of External Relations 
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen 
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com  

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation.  

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders. 

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development.  

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA expands in North America with wind power investment
09 Jan 2013
Abu Dhabi National Energy Company PJSC (TAQA) has agreed to buy a 50% interest in the 205.5 megawatt (MW) Lakefield wind project located in the Midwestern United States from a subsidiary of France-based utility Electricite de France SA (EDF).

January 09, 2013, Abu Dhabi, United Arab Emirates – Abu Dhabi National Energy Company PJSC (TAQA) has agreed to buy a 50% interest in the 205.5 megawatt (MW) Lakefield wind project located in the Midwestern United States from a subsidiary of France-based utility Electricite de France SA (EDF).

The fully operational Lakefield wind project, located in Jackson County, Minnesota, consists of 137 General Electric 1.5 MW wind turbines with the capacity to generate 205.5 MW of emissions-free electricity for more than 68,000 homes. The electricity is sold to Indianapolis Power & Light Company, a subsidiary of the AES Corporation, under a 20-year power purchase agreement. The Lakefield wind project has been supplying the regional transmission system covering the Midwestern United States and Manitoba, Canada since 2011.

Under the terms of the agreement, EDF will continue to provide operation, maintenance and related services.

Dr Saif Al Sayari, TAQA’s Executive Officer and Head of the Energy Solutions division, said: “The Lakefield acquisition is a first step in the evolution of TAQA’s global strategy for alternative energy sources. It complements our existing assets in North America and gives us a foothold in the fast-growing global wind market. The knowledge and international footprint established with this transaction will enable us to take a leading role in developing other international projects.”

TAQA currently has operations in western Canada and the northern United States where it produced 88,100 barrels of oil equivalent per day in 2011. TAQA also has an interest in a tolling agreement for the Red Oak power plant in Sayreville, New Jersey. TAQA’s total global power generation capacity in 2011 was 15,413 MW.

Subject to fulfilment of conditions precedent, including customary regulatory and third party approvals, the acquisition of the Lakefield wind project is expected to close in the first quarter of 2013.

This agreement follows the launch of TAQA’s Energy Solutions division in January 2012. It was established to invest in alternative energy projects such as wind, solar, geothermal, waste-to-energy and hydropower, as well as unconventional fossil-fuel projects such as shale gas and using CO2 for enhanced oil and gas recovery in TAQA’s existing geographies. This initiative supports TAQA’s position as a leading operator of assets through the energy value chain.

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL

TAQA enters exclusive talks for major Turkish power development
03 Jan 2013
The Republic of Turkey and the United Arab Emirates today signed an Intergovernmental Agreement for the development of power plants and associated mines in the Afsin-Elbistan region of Turkey.

January 3, 2013, Ankara, Turkey – The Republic of Turkey and the United Arab Emirates today signed an Intergovernmental Agreement for the development of power plants and associated mines in the Afsin-Elbistan region of Turkey. The agreement marks the start of exclusive negotiations between Abu Dhabi National Energy Company PJSC (TAQA), Turkey’s Electricity Generation Co. Inc. (EÜAŞ) and the Turkish government for the project with a combined power generation capacity of up to 7,000 MW.

TAQA and EÜAŞ have been selected as the government-related entities responsible for implementing the project. The two companies have signed a Memorandum of Understanding for the establishment of a project company in which TAQA and any future partners would retain the majority shareholding.

In accordance with the Intergovernmental Agreement, the project company will acquire, modernise and expand the existing 1,400 MW Plant B and develop several new power plants and associated mines in sectors C, D, E and G of the Afsin-Elbistan region in southern Turkey. Preparatory work on Plant B and the feasibility study for the planned 1,440 MW Plant C and associated mine development will start immediately.

His Excellency Mohamed bin Dhaen Al Hamli, Minister of Energy of the United Arab Emirates, said: “This agreement further strengthens the bond between Turkey and the UAE, adding an important commercial dimension to this strategic relationship.”

The Intergovernmental Agreement follows the signing of a joint declaration between the Emirate of Abu Dhabi and the Government of the Republic of Turkey on October 9, 2012 and meetings held between His Highness General Sheikh Mohamed bin Zayed Al Nahyan Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, His Excellency Abdullah Gul, the President of the Republic of Turkey, and His Excellency Recep Tayyip Erdogan, the Prime Minister of the Republic of Turkey in February 2012.

The Agreement was signed by His Excellency Taner Yıldız, Minister of Energy and Natural Resources of Turkey and His Excellency Mohamed bin Dhaen Al Hamli, Minister of Energy of the United Arab Emirates. The event was held in the presence of His Excellency Abdulla Saif Al Nuaimi, Director General of Abu Dhabi Water and Electricity Authority (ADWEA) and Vice-Chairman of TAQA; and His Excellency Khaled Al Mu’alla, Ambassador of the United Arab Emirates to the Republic of Turkey.

His Excellency Hamad Al-Hurr Al-Suwaidi said: “We are delighted to be part of this historic partnership which will achieve progress for both our nations. At TAQA, part of our strategy is to take our global expertise from Abu Dhabi to the world. As an emerging market with a positive outlook, Turkey is perfectly aligned with TAQA’s growth strategy. The country is creating the right conditions to attract foreign direct investment to develop its indigenous energy resources.”

Carl Sheldon, Chief Executive Officer of TAQA, said: “As a full-scale energy company, TAQA offers Turkey a durable partner to develop this strategic project enhancing Turkey’s energy security. This agreement paves the way for TAQA to enter an emerging merchant market for power, demonstrating TAQA’s increasing maturity as a developer and operator of assets through the energy value chain.”

The development of Turkey's indigenous lignite resources is a priority because it enables the nation to reduce its dependence on imported natural gas. Lignite’s role in power generation is set to expand alongside rapid growth expected in electricity demand. Approximately 40 % of Turkey's lignite is located in the Afşin-Elbistan basin.

The negotiations will lead to the signing of a Host Government Agreement in the second quarter of 2013, establishing more detailed terms.

– ENDS –

Contact Information for Media:

Abu Dhabi
Taryam Al Subaihi
Head of External Relations
Tel +971 2 691 4803
Mob + 97156 219 5195

Allan Virtanen
Head of Media
Tel +971 2 691 4894
Mob +971 56 685 2717
Allan.Virtanen@taqaglobal.com

About TAQA

Established in 2005, TAQA is a diversified international energy group headquartered in Abu Dhabi, the capital of the United Arab Emirates, and listed on the Abu Dhabi Securities Exchange (ADX: TAQA).

TAQA’s business is made up of three operating divisions spread across the entire energy value chain: power generation & water desalination; oil and gas exploration & production; and emerging & alternative energy technologies.

Power & Water: TAQA is one the largest independent power producers in the world and the majority owner of the facilities that provide 98% of the water and electricity requirements in Abu Dhabi. TAQA's power plants are located in the UAE, Morocco, Oman, Saudi Arabia, Ghana, India, and USA.

Oil & Gas: with operations in Canada, UK, the Netherlands, USA and Iraq, TAQA's oil and gas business includes exploration and production, underground gas storage and pipeline transportation.

Emerging & alternative energy technologies: TAQA Energy Solutions is dedicated to alternative and technology-driven energy initiatives for long-term efficient energy production and generation. 

TAQA’s vision is to deliver ‘Energy for Growth’: growth within the business; social and economic progress in the communities where TAQA operates; and increased value for our shareholders.

Over the past 40 years the UAE and Abu Dhabi have pursued a vision embodied by progressive development, investment and the highest global standards. TAQA is proud to align its strategy both domestically and globally to Abu Dhabi’s economic vision 2030, working towards sustainable economic development. 

For more information about TAQA visit: www.taqaglobal.com or Twitter: @TAQAGLOBAL