Abu Dhabi National Energy Company, TAQA, on Wednesday posted significant losses for 2014, blaming the drop in oil prices in Q4 of last year
TAQA reported a net loss of $820mn for 2014 compared to $690mn in 2013.
In response to the lower oil price environment, TAQA said it reduced its capital expenditure for 2014 by 23% compared to 2013 and will cut its capex by 39% or $680mn for 2015.
The company has set itself the target to reduce total cash cost by $410mn over the next two years.
“Despite the challenging price environment, we have delivered outstanding operational performance, achieving record production and cashflows, while enhancing the safety and reliability of our assets.
“We also successfully delivered two major projects safely, on time and within budget, and made significant progress at our third major project in the Kurdistan Region of Iraq,” said Edward LaFehr, CEO of TAQA.
Meanwhile, TAQA reported a record high production of 158.9mn boed in 2014.
In the Netherlands, it completed its gas storage Bergermeer facility and achieved full capacity.
Separately, daily production from the Netherlands’ upstream assets averaged 8.0 mboed, producing first oil from new offshore fields Amstel and Maas.
TAQA also completed the drilling of five wells at the Atrush development in the Kurdistan Region of Iraq and is progressing construction of the 30.0 mboed first-phase processing facility and related infrastructure.
Its production in North America increased 2.6% to 89.5 mboed, while capex and cost were reduced by 6%, while operations in the UK North Sea recorded average production levels of 61.4mn boed, a 30% increase over 2013.
