BAKU, Azerbaijan, July 7
By Leman Zeynalova – Trend:
TotalEnergies, unlike its peers, is forecast to see a material growth in its oil production over the near term, Trend reports with reference to GlobalData, a leading data and analytics company.
“TotalEnergies has made significant strides to investing more heavily in its low carbon, renewables business, however, unlike most other major European oil and gas companies, TotalEnergies is forecast to see a rise in its oil production over the near term. Most of the European majors have made the commitment to pull back on oil developments and push their focus more towards gas and low carbon technologies, while TotalEnergies is proving to still be committed to large scale oil developments and within the next five years oil production is forecast to grow,” said the company.
Nevertheless, the company itself says it is gradually reducing the average carbon content of its mix of energy products.
“To that end, we are taking decisive steps to ensure that gas and renewable energies figure more prominently. We are expanding our presence along the entire gas value chain, notably in LNG, the market experiencing the strongest growth (10% annually between 2015 and 2019) and in which we rank second worldwide. The Group is strengthening its production capacity with two major projects – Arctic LNG 2 in Russia and Mozambique LNG – while developing new markets thanks to regasification plants such as Dhamra in India to facilitate access to gas and promote the switch from coal to gas for power generation, thereby significantly reducing CO 2 emissions,” says TotalEnergies.
GlobalData notes that Despite its ageing fields declining, TotalEnergies is forecast to see a steady growth in crude oil and condensate production through to 2025 from 1.2 million barrels per day to 1.23 million barrels per day equivalent. “The largest portion of this growth is expected to come from its recently approved Ugandan assets surrounding Lake Albert in the west of the country, where TotalEnergies holds a 66.6 percent stake in a 230,000 barrel per day project. For the company to continue investing in low carbon and renewable technologies, the increase in oil production and continued investment in major oil developments sends a clear signal that these types of projects continue to showcase attractive economic returns that may help the company deliver its longer-term strategic transformation goals. It remains unlikely that the company can continue to develop large scale oil projects given its long term ESG commitments.”
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