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TotalEnergies (TTE) Starts Producing From Mero Field Second Phase
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TotalEnergies SE (TTE - Free Report) announced that it has started production from the second development phase of the Mero field on the Libra block, located more than 112 miles (180 kilometers) off the coast of Rio de Janeiro, Brazil, in the pre-salt area of the Santos Basin.
The Mero filed is a unitized field, operated by Petrobras (PBR - Free Report) with a 38.6% stake, in partnership with TotalEnergies (19.3%), Shell plc (SHEL - Free Report) Brazil unit (19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-Sal Petróleo S.A (PPSA) (3.5%).
The Sepetiba FPSO (Floating Production, Storage and Offloading unit), which was sanctioned in June 2019, as part of the Mero-2 second development phase, has a production capacity of 180,000 barrels of oil per day (b/d). In order to reduce greenhouse gas emissions, the FPSO is planned to have minimal regular flaring, with the accompanying gas being reinjected into the reservoir.
The Mero field will be able to produce 410,000 b/d due to the Mero-2 initiative. Currently, there are two more development phases under construction — Mero-3 and Mero-4. These two initiatives will have a production capacity of 180,000 b/d each, with start-ups anticipated by 2025. Production from the Mero field is anticipated to reach more than 100,000 b/d in TotalEnergies’ share at full capacity.
The Mero development is focused on the delivery of low-cost and low-emission oil production, which is in sync with TotalEnergies’ goal. TTE aims to be a net-zero carbon emission company by 2050.
Focus on Brazil’s Growth
Through its subsidiaries, TotalEnergies is focused on the growth of the renewable energy segment in Brazil. The company has been actively investing in business segments, Exploration & Production, gas, renewable electricity (solar and wind), lubricants, chemicals and distribution.
Currently, TotalEnergies’ Exploration & Production portfolio has four licenses in operation. In 2023, the company's average production in the country will reach approximately 140,000 barrels of oil equivalent per day. In October 2022, TTE entered into a partnership with Casa dos Ventos, Brazil's leading renewable energy producer, to jointly develop 12 gigawatts of renewables capacity.
Along with TotalEnergies, other oil and gas companies like Equinor ASA (EQNR - Free Report) are also focused on Brazil’s growth by expanding their operations.
In September 2023, Equinor announced its plan to advance with the full-scale development of two offshore gas and condensate fields in Brazil’s Campos basin, as they have been deemed suitable for commercial production. The two deposits are situated within the BM-C-33 concession, which is 124 miles (200 kilometers) away from Rio de Janeiro.
The development marks the first project in Brazil to treat gas offshore and will be directly linked to the national gas grid without additional onshore processing. The development plan includes a FPSO unit, which has a gas production capacity of 16 million cubic meters per day.
The Zacks Consensus Estimate for Equinor’s 2024 earnings is pinned at $3.99 per share. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have risen 7.6% compared with the industry’s 7.1% growth.
Image: Bigstock
TotalEnergies (TTE) Starts Producing From Mero Field Second Phase
TotalEnergies SE (TTE - Free Report) announced that it has started production from the second development phase of the Mero field on the Libra block, located more than 112 miles (180 kilometers) off the coast of Rio de Janeiro, Brazil, in the pre-salt area of the Santos Basin.
The Mero filed is a unitized field, operated by Petrobras (PBR - Free Report) with a 38.6% stake, in partnership with TotalEnergies (19.3%), Shell plc (SHEL - Free Report) Brazil unit (19.3%), CNPC (9.65%), CNOOC (9.65%) and Pré-Sal Petróleo S.A (PPSA) (3.5%).
The Sepetiba FPSO (Floating Production, Storage and Offloading unit), which was sanctioned in June 2019, as part of the Mero-2 second development phase, has a production capacity of 180,000 barrels of oil per day (b/d). In order to reduce greenhouse gas emissions, the FPSO is planned to have minimal regular flaring, with the accompanying gas being reinjected into the reservoir.
The Mero field will be able to produce 410,000 b/d due to the Mero-2 initiative. Currently, there are two more development phases under construction — Mero-3 and Mero-4. These two initiatives will have a production capacity of 180,000 b/d each, with start-ups anticipated by 2025. Production from the Mero field is anticipated to reach more than 100,000 b/d in TotalEnergies’ share at full capacity.
The Mero development is focused on the delivery of low-cost and low-emission oil production, which is in sync with TotalEnergies’ goal. TTE aims to be a net-zero carbon emission company by 2050.
Focus on Brazil’s Growth
Through its subsidiaries, TotalEnergies is focused on the growth of the renewable energy segment in Brazil. The company has been actively investing in business segments, Exploration & Production, gas, renewable electricity (solar and wind), lubricants, chemicals and distribution.
Currently, TotalEnergies’ Exploration & Production portfolio has four licenses in operation. In 2023, the company's average production in the country will reach approximately 140,000 barrels of oil equivalent per day. In October 2022, TTE entered into a partnership with Casa dos Ventos, Brazil's leading renewable energy producer, to jointly develop 12 gigawatts of renewables capacity.
Along with TotalEnergies, other oil and gas companies like Equinor ASA (EQNR - Free Report) are also focused on Brazil’s growth by expanding their operations.
In September 2023, Equinor announced its plan to advance with the full-scale development of two offshore gas and condensate fields in Brazil’s Campos basin, as they have been deemed suitable for commercial production. The two deposits are situated within the BM-C-33 concession, which is 124 miles (200 kilometers) away from Rio de Janeiro.
The development marks the first project in Brazil to treat gas offshore and will be directly linked to the national gas grid without additional onshore processing. The development plan includes a FPSO unit, which has a gas production capacity of 16 million cubic meters per day.
The Zacks Consensus Estimate for Equinor’s 2024 earnings is pinned at $3.99 per share. The company delivered an average earnings surprise of 0.8% in the last four quarters.
Price Performance
In the past three months, shares of TotalEnergies have risen 7.6% compared with the industry’s 7.1% growth.
Image Source: Zacks Investment Research
Zacks Rank
The company currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.