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.

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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.

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