Taqa to acquire Pioneer Canada in $540m accord

Friday, Aug 24, 2007

Abu Dhabi: The Abu Dhabi National Energy Company (Taqa), yesterday said it will acquire Calgary-based upstream petroleum exploration company Pioneer Canada for $540 million from Pioneer's parent - the US-based Pioneer Natural Resources Company.

Pioneer Canada, which has operations in the western Canadian sedimentary basin, would be Taqa's fifth overseas acquisition since November 2006.

"The Pioneer business is a great addition to Taqa's existing operations in Canada. The acquisition provides further scale and efficiencies to our existing businesses by adding 27 per cent to daily production, increasing reserves by 35 per cent, and providing a reserve life index in excess of 17 years," said Peter Barker-Homek, Taqa's chief executive officer, in a statement to Abu Dhabi Securities Market.

Barker-Homek was unavailable for comment.

"The Pioneer transaction is expected to close during the fourth quarter of 2007 and is subject to regulatory approval and other customary closing conditions," said Taqa's notice to the stock exchange.

Shares gain

The news ensured Taqa shares ended 4.21 per cent higher at Dh2.72 yesterday.

When finalised, the Pioneer deal will provide Taqa with an additional 59 million barrels of in-place oil and gas reserves. Currently, Taqa's combined output of its oil producing facilities is 60,000 barrels of oil equivalent per day. This includes production at the Northrock property in Canada and Brae fields in the UK.

Taqa previously said it will own and operate Taqa North Ltd, following the completion of the acquisition of Northrock Resources, a subsidiary of the US-based Pogo Producing Company for $2 billion.

The new entity, Taqa North, would provide Taqa with 142 million barrels of proven oil and gas reserves and more than 37,000 barrels of oil equivalent a day.

Taqa is aiming at acquiring upstream assets in the Middle East, North Africa, India, Canada and Europe.

Taqa operates its offices in Abu Dhabi, US and The Netherlands with alliance partners across the Gulf, Middle East, North Africa, Europe, Australia, Canada, and the US.

Gulf News 2007. All rights reserved.