TotalEnergies Reshuffling Portfolio

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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--French supermajor TotalEnergies (Courbevoie) said it plans to increase overall energy production by around 4% through 2030, even as it restructures its U.S. and European portfolios.

The French company in a strategy and outlook session said production in oil, natural gas and electricity will increase by around 4% through the end of the decade. At the same time, the company said it aims to reduce emissions from its operations, including an 80% cut in methane emissions.

On financials, the company said it strives to save at least $7.4 billion and cut its capital spending by around $1 billion annually through the end of the decade to around $16 billion per year, it reported Monday.

That forecast came as the company reshuffles its U.S. and European portfolios. On Wednesday, the company said it was selling a 50% stake in its wind and solar portfolio in France to a fund managed by Eiffel Investment Group. With some 275 megawatts (MW) of combined capacity, the company put the value of the transaction at around $310 million.

TotalEnergies has a vast renewable energy portfolio in France, with its Nogueres et Pardies Solar Power Station among the largest in the country with a nameplate capacity of 16.8 megawatts (MW). Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant Database can click here for the plant profile.

Despite the divestments, TotalEnergies said it would stay on as the operator of the assets in question, and continue with offtakes and marketing for its production.

The European move, meanwhile, followed a similar strategy in the U.S. market. The company said earlier this week it was selling half of its solar portfolio to investment firm KKR (New York, New York) for around $950 million at close. The portfolio boasts a collective power capacity of 1.4 gigawatts (GW), and comes as U.S. solar power capacity is advancing despite political headwinds.

Elsewhere, the company said it was divesting its non-operating interest in the West Ekofisk and Albuskjell fields in Norway to Var Energi and completed the divestment in a minority stake in the Tommeliten Gamma field. All three ceased production in the late 1990s.

"We remain fully committed to Norway, where the company holds interests in many licenses, including the producing fields in the Greater Ekofisk area," said Jean-Luc Guiziou, a senior vice president for upstream developments in Europe.

Much of the region, situated in the Norwegian waters of the North Sea, remains active. Ekofisk was the first Norwegian oil field brought online, after discovery in 1969.

For net oil and gas, the company said it was expecting growth of around 3% annually through 2030, supported by global startups ranging from offshore U.S. developments to Uganda. TotalEnergies earlier this week supported that production goalpost with the acquisition of acreage in the Anadarko shale basin in Oklahoma from Continental Resources (Oklahoma City, Oklahoma).

Beyond 2030, the company said nearly all of its production growth would come from existing projects or those already under development. During the second quarter, the company reported adjusted net income of $3.6 billion, a 15% decline from the same period last year.

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