Tag: TotalEnergies

TotalEnergies SE is acquiring a 60 percent interest and operatorship in Block STP02, offshore Sao Tome and Principe, from the Agência Nacional do Petroléo de S. Tomé e Principé (ANP-STP).

The remaining interest will be held by the existing licence holders, Sonangol with 30 per cent and ANP-STP with 10 per cent. The transaction is subject to final approvals from relevant authorities, TotalEnergies said in a news statsment. The financial details were not disclosed.

Located within an emerging basin, 37.3 miles (60 kilometers) off the coast of Principe, Block STP02 covers an area of 1,918 square miles (4,969 square kilometers). Block STP02 is adjacent to the Block STP01 licence operated by TotalEnergies with a 55 per cent stake, alongside Sonangol with 30 per cent and ANP-STP with 15 per cent.

“Following the encouraging prospectivity interpreted on the 3D seismic data on adjacent Block STP01, TotalEnergies continues to progress its exploration effort in Sao Tome and Principe, by entering this promising licence, thereby maintaining the optionality of the company’s portfolio,” Kevin McLachlan, Senior Vice-President Exploration of TotalEnergies, said.

Meanwhile, TotalEnergies, as shareholder of Offshore Wind One GmbH, was awarded the maritime concession N-11.2 by the German Federal Network Agency, after auctions held in the country.

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Located in the North Sea, around 74.6 miles (120 kilometers) northwest of the German island of Heligoland, concession N-11.2 covers an area of approximately 60.2 square miles (156 square kilometers). This success will enable TotalEnergies to build a 3.5-gigawatt (GW) offshore wind hub in the German North Sea, taking benefit of the synergies between this new lease and the 2-GW concession N-12.1 that it won in 2023. The concession will run for a term of 25 years, extendable to 35 years.

Under the terms of the award, Offshore Wind One GmbH will pay, at the latest in June 2025, the German Federal government $210.71 million (EUR 196 million), which will be allocated to marine conservation and the promotion of environmentally friendly fishing. An annual contribution of $94.6 million (EUR 88 million) will also be paid to the electricity transmission system operator in charge of connecting the project, for a term of twenty years starting from the commissioning of the site, according to an earlier release.

“Building upon the successful award of concession N-12.1 in the German North Sea last year, the award of the N-11.2 site will enable TotalEnergies to establish a 3.5-GW offshore wind energy hub, building on the quality of both sites and taking advantage of the development and operational synergies between them,” President Gas Renewable and Power of TotalEnergies, Stéphane Michel, said.

“This marks a new step for the deployment of TotalEnergies Integrated Power strategy in Germany after the acquisition of Quadra Energy, one of the top three aggregators of renewable electricity production and of Kyon Energy, a prominent developer of battery storage solutions. TotalEnergies is also very pleased to contribute to Germany’s decarbonization targets,” Michel added.

As part of its ambition to get to net zero by 2050, TotalEnergies said it is building a world class cost-competitive portfolio combining renewables and flexible assets to deliver clean firm power to its customers. At the end of 2023, TotalEnergies’ gross renewable electricity generation installed capacity was 22 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 terawatt-hours of net electricity production by 2030.

TotalEnergies’ portfolio in offshore wind has a total capacity of more than 16 GW, with most farms bottom-fixed, it said.

• It’s validation of investors’ response to energy sector reforms, says Fed Govt

The Federal Government has described the Final Investment Decision (FID) on the 350 million standard cubic feet of gas per day (scfd) Ubeta gas project by the Total Energies EP Nigeria Limited (TEPNG) Joint Venture, comprising Nigerian National Petroleum Company Limited (NNPCL) and Total Energies as an economic game-changer.

The milestone FID is an affirmation of growing investors’ confidence in the economy and aligns with the recent Presidential Directives on Gas. The project highlights a commitment of $550 million to extract 900 billion cubic feet of non-associated natural gas from OML 58, situated approximately 85 kilometres from Port Harcourt in Rivers state.

The Ubeta gas condensate field will be developed with a new 6-well cluster connected to the existing Obite facilities through an 11km buried pipeline. Production start-up is expected in 2027, with a plateau of 300 million cubic feet per day (about 70,000barrels of oil equivalent per day including condensates). Gas from Ubeta will be supplied to NLNG, a liquefaction plant located in Bonny Island with an on-going capacity expansion from 22 to 30 Mtpa, in which NNPC Limited holds a 49 per cent interest.

Ubeta is a low-emission and low-cost development, leveraging on OML58 existing gas processing facilities. The carbon intensity of the project will be further reduced through a 5MW solar plant currently under construction at the Obite site and the electrification of the drilling rig. TotalEnergies is working closely with NNPC Limited to enhance local content, with more than 90 per cent of manhours which will be worked locally. Upon its completion, the Ubeta project will provide 350 million standard cubic feet per day of gas, primarily earmarked for Nigeria’s domestic market and to augment the operational capacity of NLNG Train 7. This project signifies a significant step in advancing energy security, a cornerstone of the Federal Government of Nigeria’s plans to achieve sustained economic development through improved local gas utilisation.

In December 2023, President Bola Tinubu endorsed three presidential initiatives to revitalise investment in the country’s oil and gas sector, resulting in the $550 million investment.

These directives include initiatives to promote fiscal incentives for gas utilisation projects, enhance the competitiveness of local content, and streamline contracting costs to global standards.

The Senior Vice President of Africa, Exploration & Production, TotalEnergies, Mike Sangster, said, “Ubeta is the latest in a series of projects developed by TotalEnergies in Nigeria, most recently Ikike and Akpo West. I am pleased that we can launch this new gas project, which has been made possible by the Government’s recent incentives for non-associated gas developments. Ubeta fits perfectly with our strategy of developing low-cost and low-emission projects and will contribute to the Nigerian economy through higher NLNG exports”.

At the event, Group CEO of NNPCL, Mela Kyari, said, “Our collaboration with Total Energies and the federal government has once again proven to be highly effective in bringing the Ubeta project to this stage. As NNPCL and its subsidiaries continue to reposition operations in line with the PIA and the new presidential directives to strengthen it, projects like this will ensure a steady supply of gas for the domestic market as well as the NLNG Train 7, whilst driving economic activities across various sectors during and after its completion. NNPCL is proud to lead this impactful initiative with our partners.”

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Olu Verheijen, Special Adviser to the President on Energy (SAD-E), said: “The Ubeta project is a prime example of the kind of investment that our recent reforms aim to attract. 76 per cent of Nigeria’s gas reserves remains underdeveloped and 50 per cent of this is Non-Associated Gas (NAG). We recognised the urgency of closing this gap through our assessment of the Petroleum Industry Act (PIA) and the new directives, signed by President Bola Tinubu to strengthen the PIA. Our approach was to respond with data driven policies, with the aim to reclaim Nigeria’s position as a top destination for returns on investment and ease of doing business, as well as attract new investments, revive dormant ones, and safeguard the industry while creating value for sustained impact for Nigerians.

“The Ubeta Final Investment Decision (FID) also aligns with Nigeria’s overall energy policy which emphasises the development of the gas sector to diversify the country’s energy mix, reduce flaring and promote cleaner energy sources. The project also has a strong focus on supplying gas to the domestic market and NLNG train 7. Additionally, this project will bring sustainable prosperity through strategic and structured community economic empowerment. Overall, we are positive that projects like this will boost confidence and bring more investments to the Nigerian oil & gas sector,” Verheijen added.

In similar vein, the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, said President Tinubu has significantly rekindled investors’ confidence in the Oil and Gas industry, assuring Nigerians that more investments are on the way.

Also speaking, the Minister of State for Petroleum Resources (Gas), Ekperikpe Ekpo, said the project is a testament to the effectiveness of Government’s policies aimed at creating a conducive environment for investment in the gas sector.

As the project moves into the development phase, operations are expected to start as planned, significantly contributing to Nigeria’s reemerging position as a critical player in the sustainable global energy landscape and President Tinubu’s commitment to creating a favourable environment for significant foreign and local investments in Nigeria’s oil and gas sector.

The Alternative Bank and TotalEnergies have struck a partnership that aims at bringing vital banking services directly to underserved communities nationwide.

The innovative partnership is pioneering ‘Branch in a Box’ initiative, with mini-branches that will be strategically located within select TotalEnergies stations across the country, offering enhanced accessibility and convenience for customers seeking essential financial services.

The ‘Branch in a Box’ initiative addresses the challenges faced by remote communities, with limited access to vital financial services.

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Director, Products & Innovation, The Alternative Bank, Mohammed Bashir Yunusa, lauded the initiative as innovative and timely, emphasising its role in alleviating the difficulties associated with accessing financial services.

According to him, the ‘Branch in a Box’ provides convenient, accessible banking services within trusted and familiar locations, staffed with well-trained customer service personnel to assist everyone.”

The ‘Branch in a Box’ functions like traditional branches, offering a comprehensive range of banking services, including account opening, cash withdrawal and deposit, fund transfers, card pick-up, access to interest-free credit, and more.

The inaugural batch of ‘Branch in a Box’ locations welcomes customers at TotalEnergies stations in Ojuelegba, Yaba, Fadeyi, Oshodi, and Ojota Lagos, with a nationwide rollout scheduled in the coming weeks.

Expressing enthusiasm about the collaboration, Yunusa remarked: “The Alternative Bank and TotalEnergies have a shared commitment to fueling financial inclusion and supporting the communities they serve.’’

TotalEnergies saw its first-quarter adjusted net income drop by 22 per cent from a year ago, but the French supermajor’s adjusted earnings beat the consensus estimate.

Stable oil prices and healthy refining margins failed to fully offset a decline in natural gas prices, but helped TotalEnergies beat analyst forecasts as it reported the first quarter (Q1) earnings at the weekend. The company announced additional share buybacks and an increase in the first interim dividend for 2024.

TotalEnergies posted an adjusted net income of $5.1 billion for the first quarter of 2024, down by 22 per cent compared to $6.5 billion for the same period of 2023. Still, the past quarter’s adjusted earnings beat the $5 billion consensus estimate of analysts’ forecasts compiled by LSEG and $4.88 billion expected in an Visible Alpha consensus.

 “In a context of sustained oil prices and refining margins but softening gas prices, the Company announced first quarter 2024 adjusted net income of $5.1 billion and cash flow of $8.2 billion, in line with its ambitious 2024 objectives,” TotalEnergies’ chief executive officer Patrick Pouyanné said in a statement.

Oil and gas production averaged 2.46 million barrels of oil equivalent per day (boe/d), benefiting from six per cent quarter-to-quarter production growth in LNG and from start-ups at Mero 2 in Brazil and Akpo West in Nigeria. The output, however, is expected to slightly drop in the second quarter to between 2.4 million boe/d and 2.45 million boe/d, due to planned maintenance that will be partially offset by ramp-ups of Mero 2 in Brazil and Tyra in Denmark.

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TotalEnergies’ Board of Directors decided to pay a first interim dividend of 0.79 euros or $0.85 per share for 2024, up by nearly seven per cent compared to 2023, and authorised the company to buy back shares for $2 billion in the second quarter of 2024.

During the earnings call, Pouyanné said that TotalEnergies is “seriously” looking at a primary listing in New York, due to a friendlier investor base.

 “U.S. shareholders are buying, European shareholders are not so buying, so we must think of it,” Pouyanné said. The executive expects to report to the board on the issue by September.

Another European major, Shell, has also recently hinted at ditching London for the NYSE, as it believes its stock is undervalued on the London Stock Exchange.

Managing Director and Country Chair, TotalEnergies Exploration and Production (E&P) Nigeria Limited, Matthieu Bouyer has said the company would take the final investment decision (FID) on the Ubeta gas project in 2024, while some other big projects would follow shortly.

Bouyer made this disclosure when he led senior officials of the company to visit the Executive Secretary of the Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe at the Board’s Abuja liaison office.

An elated Bouyer noted that the company has had an outstanding track record in Nigeria as well as developed key oil and gas projects in the last 10 years, including in the deepwater and shallow water, Nigerian content records such as the fabrication of six modules of the Egina’s Floating Production Storage and Offloading (FPSO) vessel in Nigeria.

He also reassured the company was determined to unlock new projects in Nigeria and solicited the continued cooperation of the NCDMB for accelerated Nigerian Content reviews and approvals. He noted the Ubeta project, which is located at Oil Mining Lease (OML) 58 is an onshore project designed to contribute gas to the Nigeria Liquefied Natural Gas (NLNG) plant and meet other domestic gas supply needs.

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According to Bouyer, other projects on the horizon include the Preowei deepwater project. The proposed project lies in (OML) 130, north of Egina field, with water depth of around 5,904 feet. He assured that the company would engage closely with the NCDMB to achieve speedy development of the project, increased crude oil production for the country and revenue.

The Executive Secretary in his remarks assured the TotalEnergies E&P team the Board would fast-track the approvals needed by the company to deliver speedily on its oil and gas projects. While referring to the Service Level Agreement (SLA) instituted by the Board with industry’s key stakeholders for shortening the contracting cycle, the NCDMB helmsman vowed the Board would strive to improve the turnaround time for its approvals on projects.

He further conveyed the commitment of the NCDMB to create an enabling environment that would attract investments and new projects into the sector, thereby creating employment opportunities for youths and addressing insecurity in the polity, in line with the present administration’s renewed hope agenda.

He charged the company to comply with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act, assuring the Board would support all bankable oil and gas projects and grant accelerated approvals once they meet the specified Nigerian Content regulations.

Speaking further, the Executive Secretary proposed the constitution of a technical working group (TWG) with representatives of NCDMB and TotalEnergies E&P. He recommended that the TWG could meet quarterly to proactively address pertinent issues that relate to the company’s projects and the Board’s expected roles.

Earlier, the Nigerian Agip Oil Company (NAOC) led by the Managing Director/ Vice-Chairman, Fabrizio Bolonoi visited the Board’s liaison office. The purpose of the visit was to congratulate the Executive Secretary on his appointment and convey the company’s willingness to support his leadership and develop new oil and gas projects in Nigeria.

International oil major, TotalEnergies, has signed an agreement with the Nigeria National Petroleum Company Limited (NNPCL), aimed at carrying out methane detection and measurement campaigns using its advanced drone-based technology- AUSEA, on oil and gas facilities in Nigeria.

This comes on the heels of similar agreements signed ahead of COP28 with three other national oil and gas companies- Petrobras in Brazil, SOCAR in Azerbaijan and Sonangol in Angola. “TotalEnergies is pleased to announce the end of routine flaring in its operations in Nigeria and the sharing of our in-house AUSEA technology with NNPCL, concretely supporting NNPCL to deliver the commitment taken at COP28 by endorsing the Oil & Gas Decarbonisation Charter. We had a very constructive and pragmatic discussion with President Bola Tinubu on key actions Nigeria should take to attract increased investment in the country,” said Patrick Pouyanné, the Chairman/ CEO, TotalEnergies.

Pouyanné also reaffirmed the firm’s long-term commitment to the country, including its long-term partnership, which, he noted, has been further buoyed by its continued exploration operations, evidenced by the Ntokon discovery earlier in June.

He stressed that TotalEnergies owns a rich portfolio of projects, which might represent more than $6 billion investments in the future years.

According to him, over the past decade, TotalEnergies has been the largest private energy investor in the Nigeria, a position it attained by developing major projects such as Egina, Ofon Phase 2, the OML 58 Upgrade and recently Ikike, which it started in 2022.

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Pouyanné, in a statement obtained by The Nation, stated that during his recent meeting with President Tinubu in Abuja, avenues to improve the investment climate and security of operations; TotalEnergies’ future investment programme in the country, as well as TotalEnergies’ efforts to support carbon emissions reduction in Nigeria, were well articulated.

Besides, he hinted that ending routine flaring and joining forces to measure and reduce methane emissions, TotalEnergies, as a founding member of the World Bank’s Global Gas Flaring Reduction (GGFR) partnership, had endorsed the “Zero Routine Flaring by 2030” initiative.

“As evidence of this commitment, TotalEnergies, in partnership with Nigerian National Petroleum Company Limited (NNPCL), has finalised in December 2023 the OML 100 Flare Out project, thereby becoming the first major operator in Nigeria to completely eliminate routine flaring from all operated assets,” he said.