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Abu Dhabi: The Abu Dhabi National Energy Company (Taqa) produces a combined 60,000 barrels of oil equivalent per day at its properties at an average cost of $7/barrel of oil equivalent, the company's chief executive officer said yesterday.
Peter Barker-Homek told Gulf News in an interview that Taqa's cost of oil and natural gas production is comparable with that of some of the top global petroleum producers, including ExxonMobil Corp.
At present, Taqa has investments, assets and operations in 10 countries - UAE, Canada, Ghana, India, Morocco, The Netherlands, Russia, Saudi Arabia, the UK and the US.
Asked when Taqa is looking to close its next deal, Barker-Homek said, "We expect to announce transactions in our core markets - Middle East/North Africa, India and Pakistan, Europe and Canada."
He added: "Taqa screens 100 deals for 10 that we appraise, three that we negotiate and one that we enter into agreement upon. We have walked away from over $22 billion in deals so far this year."
Barker-Homek said Taqa's strategy is to build its business upon three segments: upstream (oil and gas exploration and production), midstream (pipelines, gas storage, liquefied natural gas regasification) and downstream (power generation and in select markets, gas/power distribution).
Barker-Homek, a 46-year-old Irish-American, said Taqa has developed a best-in-class exploration and production team.
"We have them evaluate development blocks and farm-in opportunities on an ongoing basis," he said.. "We are keen on developing our business further in India, where we have a power generation facility in Chennai, and a joint venture with ILFS [Infrastructure Leasing & Financial Services]. We are also very enthusiastic about entering into Pakistan's energy sector."
Asked about Taqa's duration of loans and the rate of interest on its borrowings, Barker-Homek said the company has syndicated bank loans in its subsidiaries within the UAE.
"The tenures run out to 20-22 years. Taqa also has capital market debt that varies in tenor from seven years to 30 years. The average cost of borrowing is 5.88 per cent," said Barker-Homek.
Taqa has issued $3.5 billion in bonds to the global community. In addition, through a syndication of banks, it has about $6.5 billion in project finance in its subsidiaries in the UAE.
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