Page 14 - FSUOGM Week 40 2022

FSUOGM PROJECTS & COMPANIES FSUOGM

TotalEnergies pledges increased investment

as it shifts away from Russia

FRANCE FRANCE’S TotalEnergies has announced plans after month,” he said.
to ramp up investment globally as it seeks to scale Ukraine has criticised the dividends as “blood
TotalEnergies is down its Russian business, the company’s CEO money,” and two advisors to Ukrainian President
pursuing a more Patrick Pouyanne said last week. Volodymyr Zelenskiy wrote to TotalEnergies
gradual wiithdrawal TotalEnergies retains its interests in the oper- telling it to reject the dividends or spend the
from Russia compared ational Yamal LNG and under-construction funds on Ukrainian reconstruction, according to
with some of its Arctic LNG-2 liquefaction terminals in Russia, a report by the Wall Street Journal in September.
counterparts. even though it has sold off some smaller assets. For its part, the French government has told
The company has not specifically said it would TotalEnergies to continue receiving gas from
sell its remaining operations in the country yet, Russia for the European market, given the supply
in contrast to peers such as Shell and BP, which crunch that the continent is facing.
have said they will pull out of Russia completely. TotalEnergies is ramping up investments in
Speaking to investors on September 28, floating LNG (FLNG) terminals to help Europe
Pouyanne said TotalEnergies had “no future find alternatives to Russian gas, and has signed
with Russia,” while walking them through how new long-term contracts with Qatar and others
the company would prioritise higher payouts to to secure those alternatives. The company esti-
shareholders. mates that by 2027 its higher LNG production
TotalEnergies will expand its net invest- will help it replace Russian gas flow. It is targeting
ments in oil, gas and renewables over the next a 40% growth in LNG supply by the end of the
three years, while avoiding any further capital decade.
spending in Russia, the oil major said. While On the back of higher oil and gas prices,
the company has committed to phasing out oil TotalEnergies has pledged to provide its inves-
purchases from Russia, it has said it could only tors with an extra €1 per share special dividend
sever its gas supply contracts if Europe were to in 2022, worth €2.6bn in total, in addition to
introduce sanctions requiring it to do so. regular quarterly payments and a share buyback
The company also continues to receive divi- programme.
dends from those Russian assets, but Pouyanne In addition, its overall capital expenditure
indicated that might change soon. is slated to grow to $14-18bn annually by 2025,
“It is not easy to receive cash. The financial compared with a previous target of $13-16bn.
circuits between Russia and the rest of the world While growing its renewables spending, the
are becoming complex for Western companies. company stresses that new oil supply projects
So to be transparent, yes, we have received some- will continue to be needed into the mid-2030s to
thing this year, but I see some complexity month keep up with global demand. ™

P14 www. NEWSBASE .com Week 40 06•October•2022