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TotalEnergies (TTE) Studies Prospects of Oil Project in Suriname
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TotalEnergies SE (TTE - Free Report) announced the beginning of development studies for a large oil project in Block 58, offshore Suriname. TotalEnergies is the operator of Block 58 and holds a 50% interest, while APA Corporation (APA - Free Report) has the remaining 50%.
TotalEnergies is committed to the Suriname authorities for developing this project responsibly, guaranteeing advantages for Suriname's economic operations as well as utilizing the finest technology to reduce greenhouse gas emissions. The company has been operating in Block 58 in Suriname since 2019 and made five big discoveries there. In the current year, TTE has also been exploring Blocks 6 and 8.
With the drilling and testing of three wells, the appraisal of the two major oil finds, Sapakara South and Krabdagu, was successfully completed in August 2023. This validated combined resources of about 700 million barrels for the two fields. These deposits, which are found in 100- 1,000 meters deep water. The production from these fields will be exploited via a network of subsea wells linked to an FPSO (Floating Production, Storage and Offloading unit) with a daily oil production capacity of 200,000 barrels. The FPSO is situated nearly 93 miles off the coast of Suriname. The project will require an estimated $9 billion investment.
The detailed engineering studies will begin by the end of 2023, and the final investment decision is planned for the end of 2024, with a first production planned for 2028.
Focus on Emission Reduction
The Block 58 development studies represent a significant advancement in the development of Suriname's petroleum resources. This initiative utilizes TotalEnergies' expertise in deep sea projects and is consistent with the company’s ambition to develop low-cost, low-emission oil resources.
TTE is focused on emission reduction, and generating energy from alternate and clean sources. It strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Along with TotalEnergies, other oil and gas companies like ExxonMobil Corporation (XOM - Free Report) and BP plc (BP - Free Report) are also adopting measures to reduce emissions from its operations.
To meet the growing demand for clean fuels, ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to invest billions of dollars in emission reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net zero Scope 1 and net zero Scope 2 GHG emissions by 2030 for unconventional operated assets.
The company’s long-term (three to five years) earnings growth rate is 21.39%. It delivered an average earnings surprise of 5.2% in the last four quarters.
BP has established an ambitious energy transition strategy to take advantage of the growing demand for sustainable energy. The company plans to reduce emissions by 30-35% from its operations by 2030.
BP’s long-term earnings growth rate is 6.51%. The company delivered an average earnings surprise of 7.7% in the last four quarters.
Price Performance
In the past year, shares of TotalEnergies have risen 31.8% compared with the industry’s 23.5% growth.
Image: Bigstock
TotalEnergies (TTE) Studies Prospects of Oil Project in Suriname
TotalEnergies SE (TTE - Free Report) announced the beginning of development studies for a large oil project in Block 58, offshore Suriname. TotalEnergies is the operator of Block 58 and holds a 50% interest, while APA Corporation (APA - Free Report) has the remaining 50%.
TotalEnergies is committed to the Suriname authorities for developing this project responsibly, guaranteeing advantages for Suriname's economic operations as well as utilizing the finest technology to reduce greenhouse gas emissions. The company has been operating in Block 58 in Suriname since 2019 and made five big discoveries there. In the current year, TTE has also been exploring Blocks 6 and 8.
With the drilling and testing of three wells, the appraisal of the two major oil finds, Sapakara South and Krabdagu, was successfully completed in August 2023. This validated combined resources of about 700 million barrels for the two fields. These deposits, which are found in 100- 1,000 meters deep water. The production from these fields will be exploited via a network of subsea wells linked to an FPSO (Floating Production, Storage and Offloading unit) with a daily oil production capacity of 200,000 barrels. The FPSO is situated nearly 93 miles off the coast of Suriname. The project will require an estimated $9 billion investment.
The detailed engineering studies will begin by the end of 2023, and the final investment decision is planned for the end of 2024, with a first production planned for 2028.
Focus on Emission Reduction
The Block 58 development studies represent a significant advancement in the development of Suriname's petroleum resources. This initiative utilizes TotalEnergies' expertise in deep sea projects and is consistent with the company’s ambition to develop low-cost, low-emission oil resources.
TTE is focused on emission reduction, and generating energy from alternate and clean sources. It strives to be a net-zero carbon emission company by 2050 and has taken the necessary steps to achieve the target. The company is gradually building a portfolio of low-carbon businesses that could account for 15-20% of sales by 2040.
Along with TotalEnergies, other oil and gas companies like ExxonMobil Corporation (XOM - Free Report) and BP plc (BP - Free Report) are also adopting measures to reduce emissions from its operations.
To meet the growing demand for clean fuels, ExxonMobil has been working to reduce emissions by developing more efficient fuels. The company intends to invest billions of dollars in emission reduction projects over the next few years. XOM has developed an ambitious roadmap to achieve net zero Scope 1 and net zero Scope 2 GHG emissions by 2030 for unconventional operated assets.
The company’s long-term (three to five years) earnings growth rate is 21.39%. It delivered an average earnings surprise of 5.2% in the last four quarters.
BP has established an ambitious energy transition strategy to take advantage of the growing demand for sustainable energy. The company plans to reduce emissions by 30-35% from its operations by 2030.
BP’s long-term earnings growth rate is 6.51%. The company delivered an average earnings surprise of 7.7% in the last four quarters.
Price Performance
In the past year, shares of TotalEnergies have risen 31.8% compared with the industry’s 23.5% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.