BAKU, Azerbaijan, Feb.9
By Leman Zeynalova – Trend:
In a context of disciplined OPEC+ quota implementation, France’s TOTAL company anticipates 2021 production will be stable compared to 2020, benefiting from the resumption of production in Libya, Trend reports with reference to the company.
“Supported by OPEC+ quota compliance, oil prices have remained above 50 $/b since the beginning of 2021. However, the oil environment remains uncertain and dependent on the recovery of global demand, still affected by the Covid-19 pandemic,” said the company.
The Group continues its profitable growth in LNG with sales expected to increase by 10 percent in 2021 compared to 2020, notably due to the ramp-up of Cameron LNG. European refining margins remain fragile, with low demand for jet fuel weighing on the recovery of distillates.
However, thanks to the resilience of Marketing & Services, the Group expects Downstream to contribute more than $5 billion of cash flow in 2021, assuming refining margins of 25 $/t. Faced with uncertainties in the environment, net investments are projected at $12 billion in 2021, while preserving the flexibility to mobilize additional investments should the oil and gas environment strengthen. After reducing operating costs by $1.1 billion in 2020 compared to 2019, the Group maintains strong discipline on spending and targets additional savings of $0.5 billion in 2021.
The Group maintains its priorities for cash flow allocation: investing in profitable projects to implement the Group’s transformation strategy, support the dividend and maintain a strong balance sheet. Already in 2021, in renewables, the Group has announced more than 10 GW of additional projects through the acquisition of a 20 percent stake in Adani Green Energy Limited (AGEL), the world’s leading solar developer, a partnership with Hanwha in the United States with a 1.6 GW portfolio, and the acquisition of a 2.2 GW portfolio of projects in Texas. TOTAL will allocate in 2021 more than 20 percent of its net investments to Renewables and Electricity.
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