Taqa North also shrinking

Taqa North, the Calgary-based company owned by state-owned Abu Dhabi National Energy Co., has added its name to the list of companies that are shrinking their payrolls.

It confirmed Jan. 28 that 50 of its 950 employees will be laid off as part of a reorganization to streamline operations by reducing costs and increasing efficiency.

“In a tight natural gas market you really need to be top quartile, top decile in your ability to operate and your ability to execute your capital and drilling plans and we weren’t there,” said Taqa President Ed LaFehr.

He said that since Taqa entered Canada four years ago by acquiring three companies for C$7.5 billion it has run the assets through three geographical divisions.

It now plans to change to a “functional” single stream model, he said.

Taqa averaged North American oil and natural gas production of 84,500 barrels of oil equivalent per day in the first three quarters of 2012, exiting the year at 91,000 boe per day after acquiring NuVista Energy to add 5,000 boe per day.

LaFehr said 80 percent of the 2013 capital budget is earmarked for oil and liquids-rich gas plays as Taqa targets an increase in its 30 percent liquids production weighting.

—Gary Park