Abu Dhabi National Energy Company, also called TAQA, has reached an agreement on terms of the sale to Blue Sky and the deal is now awaiting approval from the Alberta Energy Board.
“If and when any deal is finalized and approved by the relevant authorities, we will make an announcement in line with regulatory requirements,” TAQA told Reuters in an emailed response.
Several global oil majors have rushed to sell Canadian oil sands assets over the last four years over concerns ranging from high production costs and emissions to scarcity of capital.
If finalized, TAQA’s sale of the assets would make it the second large international oil company to trim its holdings in Canada in recent months. Last week, Japanese state-backed oil producer Japan Petroleum Exploration Co (Japex) announced the sale of its Hangingstone oil sands project on Thursday.
A host of other Middle Eastern oil and gas companies, including Saudi Aramco, have also outlined plans to raise tens of billions of dollars through sales of stakes in energy assets.
The TAQA assets being sold had production of 9,359 barrels of oil equivalent per day as of September 2020, according to marketing materials seen by Reuters. The assets being sold span 547,467 net acres.
Based in Calgary, Alberta, Blue Sky Resources has been making acquisitions around the region since the start of this year. Backed by oil industry veteran Ilyas Chaudhary and his family, the company has completed at least two other acquisitions in the last six months.
Chaudhary previously led an Irvine, California-based oil producer, Saba Petroleum Co, from 1985 until 1998. He later headed Capco Energy Inc, an offshore U.S. Gulf Coast-focused oil driller.
Not much is publicly known about Blue Sky, a tightly held company, and its website says it is “being reconstructed.”
In March, the company purchased oil producing assets in Alberta from Highwood Oil Company Ltd. It had earlier taken over bankrupt company Zargon Oil and Gas Ltd.