France’s TotalEnergies plans to take final investment decision (FID) in Suriname before year-end 2024, CEO Patrick Pouyanné said during a quarterly webcast with analysts.
As part of the anticipated FID later this year, TotalEnergies plans to first place its long lead item (LLI) orders related to its Suriname project in offshore Block 58, Pouyanné said during the company’s first-quarter 2024 webcast.
LLIs refer to equipment associated with long delivery times, potentially directly impacting the lead time of a project during the engineering, procurement and construction phase.
Pouyanné said the company is continuing engineering studies around the production dimension of the two main oil discoveries at Sapakara South and Krabdagu on the block. Responding to analyst questions, he hinted that Total had a vision for a development with a production capacity between 150,000 bbl/d and 180,000 bbl/d.
The estimate is down from September 2023, when TotalEnergies and its U.S. partner APA Corp. said the two fields would have a combined gross production capacity of 200,000 bbl/d and that first oil would flow in 2028.
RELATED
TotalEnergies, APA Eye $9B FID in Suriname’s Block 58
Suriname to See $23 Billion Deepwater Boom While Venezuela Struggles
TotalEnergies reported total production of 2.46 MMboe/d in first-quarter 2024, down 2% compared to first-quarter 2023 and flat sequentially compared to the fourth quarter 2023.
First-quarter adjusted net income fell 22% to $5.1 billion compared to first-quarter 2023 and down 2% compared to the fourth-quarter of 2023, the company reported. Year-over-year results were impacted by Henry Hub prices that fell by 22%, coupled with higher declines in LNG prices at the National Balancing Point and Japan/Korea Marker, according to TotalEnergies.
TotalEnergies generated adjusted EBITDA of $11.5 billion in the first quarter, down 19% compared to first-quarter 2023 and down 2% compared to the fourth quarter of 2023.
TotalEnergies executed $2 billion in buybacks in the first quarter and increased its dividend by 7% year-over-year.
“Profitability remains strong, with a return on average capital employed of 16.5%. And we maintain discipline, confirming net investment guidance of $17 billion to $18 billion for 2024,” TotalEnergies CFO Jean-Pierre Sbraire said during his opening webcast remarks.
Recommended Reading
Moda Midstream II Receives Financial Commitment for Next Round of Development
2024-03-20 - Kingwood, Texas-based Moda Midstream II announced on March 20 that it received an equity commitment from EnCap Flatrock Midstream.
Hess Midstream Subsidiary Plans Private Offering of Senior Notes
2024-05-08 - The proposed issuance is not expected to have a meaningful impact on Hess Midstream’s leverage and credit profile, according to Fitch Ratings.
OGInterview: Building EIV Capital’s Midstream Investment Strategy
2024-05-01 - Midstream-focused EIV Capital has added non-operated assets and transition projects to its portfolio as a sign of the times.
Hess Midstream Increases Class A Distribution
2024-04-24 - Hess Midstream has increased its quarterly distribution per Class A share by approximately 45% since the first quarter of 2021.
Equitrans Midstream Announces Quarterly Dividends
2024-04-23 - Equitrans' dividends will be paid on May 15 to all applicable ETRN shareholders of record at the close of business on May 7.