BAKU, Azerbaijan, July 29
By Leman Zeynalova – Trend:
TotalEnergies plans to spend 50 percent of growth investments on renewables and electricity, Trend reports with reference to the company.
Given the outlook for OPEC+ quotas in the second half 2021, TotalEnergies anticipates its full-year 2021 hydrocarbon production to be around 2.85 Mboe/d. The start-up and ramp-up of new projects, including Zinia Phase 2 in Angola, North Russkoye in Russia and Iara in Brazil, will contribute to increased production in the second half 2021. TotalEnergies anticipates that the higher oil prices observed in the first half 2021 will have a positive impact on its average realized price of LNG for the coming six months, given the lag effect on price formulas. It is expected to be more than $7.5/Mbtu in the third quarter 2021.
Hydrocarbon production was 2,805 kboe/d in the first half 2021, a decrease of 5 percent, comprised of: +2 percent due to the start-up and ramp-up of projects, including North Russkoye in Russia, Culzean in the United Kingdom, Johan Sverdrup in Norway and Iara in Brazil, -1 percent portfolio effect, notably asset sales in the United Kingdom and Block CA1 in Brunei, -2 percent due to planned maintenance and unplanned outages, notably in the United Kingdom, Australia, Norway and Nigeria, -1 percent due to the price effect, -3 percent due to the natural decline of the fields.
Gas markets in Asia and Europe are benefiting from the strong growth in demand linked to the global economic recovery. TotalEnergies maintains discipline on expenses, with net investments expected to be between $12-13 billion in 2021, with half dedicated to future growth. For those growth investments, 50 percent will be dedicated to renewables and electricity. In an environment of hydrocarbon prices that would remain in the second half of the year at the level of the first half ($65/b for Brent, $8/Mbtu for gas in Europe) and European refining margins of $10-15/t, TotalEnergies expects cash flow generation (DACF) of more than $25 billion in 2021 and a return on capital employed of more than 10 percent.
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