TotalEnergies SE: Norway: First Oil Production on Eldfisk North

Rhea-AI Summary

TotalEnergies announces successful first oil production on the Eldfisk North Project, located in the Greater Ekofisk Area in the North Sea. The project, approved in December 2022, started production ahead of schedule in the second quarter of 2024. With a low break-even and low greenhouse gas emissions, the project is a valuable addition to TotalEnergies' portfolio.

Positive

• Successful first oil production on the Eldfisk North Project

• Project started ahead of schedule in the second quarter of 2024

• Low break-even and greenhouse gas emissions below 10 kg/boe

• Project benefits from existing infrastructure in the Greater Ekofisk Area

• Project creates 15,000 barrels of oil equivalent per day at peak production

• Project has created approximately 4,000 to 4,500 jobs

• Over 80% of the total contract value awarded to Norwegian businesses

Negative

• None.

Insights

Energy Analyst

The commencement of first oil production at the Eldfisk North Project represents a strategic milestone for TotalEnergies, particularly in the context of the current global energy landscape. By starting production ahead of schedule, the company showcases its operational efficiency, which is important in an industry where time-to-market can significantly impact project net present values (NPVs) and internal rates of return (IRRs). Moreover, the project's low break-even point is indicative of the company's ability to sustain profitability even in lower oil price environments, which could potentially strengthen investor confidence in its financial resilience. From an environmental perspective, the reported greenhouse gas emissions of below 10 kg/boe demonstrate TotalEnergies' commitment to reducing its carbon footprint. This aligns with the growing investor emphasis on environmental, social and governance (ESG) criteria. As oil and gas companies face increasing pressure to transition towards cleaner energy sources, TotalEnergies' focus on efficiency and lower emissions could improve its ESG rating, potentially attracting a wider base of sustainability-conscious investors. The local economic impact, with 80% of contracts being awarded to Norwegian businesses and the creation of up to 4,500 jobs, reflects positively on TotalEnergies' corporate responsibility and local engagement. This can enhance the company's reputation and potentially foster goodwill among stakeholders, including regulators and the community at large. However, the long-term outlook of oil and gas projects remains subject to geopolitical, regulatory and market dynamics, which investors should monitor closely.

Market Research Analyst

TotalEnergies' announcement can be seen as a positive indicator in the oil and gas sector. The ahead-of-schedule delivery of the Eldfisk North Project amplifies its competitive edge by demonstrating superior project management and may positively influence the company's stock performance in the short term. The capacity to deliver complex projects ahead of time can act as a bellwether for the company's future operational successes, potentially leading to favorable adjustments in analysts' forecasts and stock price targets. Investors should also consider the positive implications of TotalEnergies' sizable contracts to Norwegian businesses. This not only bolsters the local economy but also potentially streamlines supply chains and reduces project risks associated with logistics and geopolitical uncertainties in other regions. The ability to localize supply chains is a strategic asset in today's economy where global dislocations and trade tensions can lead to delays and increased costs. However, as the energy sector is highly cyclical and volatile, the long-term attractiveness of the project will depend on sustained demand for fossil fuels and the company's adaptability to a transitioning energy market. Investors should balance the positive short-term production news with the broader context of energy market trends and TotalEnergies' strategic positioning within those trends.

PARIS--(BUSINESS WIRE)-- Regulatory News:

TotalEnergies (Paris:TTE) (LSE:TTE) (NYSE:TTE) announces successful first oil production on the Eldfisk North Project, located in the Greater Ekofisk Area in the North Sea.

The Eldfisk North Project is located in PL018, and the licensees are TotalEnergies EP Norge AS (39.896%), ConocoPhillips Skandinavia AS (35.112% - Operator), Vår Energi ASA (12.388%), Sval Energi AS (7.604%) and Petoro AS (5.000%).

In December 2022, the Norwegian authorities approved the Eldfisk North Plan for Development and Operation with original production start scheduled in the second quarter of 2024. Cooperation and efficiency across companies have unlocked earlier first oil production.

“This is a nice example of a short cycle project which is delivered safely and ahead of plan. The Eldfisk North project is indeed unlocking additional resources whilst benefitting from the use of available capacities in the existing infrastructure in the Greater Ekofisk Area. With a low break-even and greenhouse gas emissions below 10 kg/boe, the Eldfisk North project fits nicely in TotalEnergies portfolio,” said Jean-Luc Guiziou, Senior Vice President Europe for Exploration & Production at TotalEnergies.

The Eldfisk North Project comprises three 6-well subsea templates located approximately seven kilometers from the Eldfisk Complex. The development includes up to 14 wells, whereof nine are producers and five will inject water into the reservoir. The Eldfisk North Project will produce 15,000 barrels of oil equivalent per day at peak and use the available capacity of Eldfisk facilities for processing and transportation.

The project has created approximately 4,000 to 4,500 jobs, and more than 80% of the total contract value has been awarded to Norwegian businesses.

About Eldfisk

The Eldfisk Field was discovered in 1970 and original plan for development and operation was approved in 1975. A new plan for development and operation was approved for the Eldfisk II Redevelopment Project in 2011. The Eldfisk reservoir consists of fractured chalk containing mainly oil, similar to surrounding fields in the Greater Ekofisk Area.

About TotalEnergies

TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.

@TotalEnergies TotalEnergies TotalEnergies TotalEnergies

Cautionary Note

The terms “TotalEnergies”, “TotalEnergies company” or “Company” in this document are used to designate TotalEnergies SE and the consolidated entities that are directly or indirectly controlled by TotalEnergies SE. Likewise, the words “we”, “us” and “our” may also be used to refer to these entities or to their employees. The entities in which TotalEnergies SE directly or indirectly owns a shareholding are separate legal entities. This document may contain forward-looking information and statements that are based on a number of economic data and assumptions made in a given economic, competitive and regulatory environment. They may prove to be inaccurate in the future and are subject to a number of risk factors. Neither TotalEnergies SE nor any of its subsidiaries assumes any obligation to update publicly any forward-looking information or statement, objectives or trends contained in this document whether as a result of new information, future events or otherwise. Information concerning risk factors, that may affect TotalEnergies’ financial results or activities is provided in the most recent Universal Registration Document, the French-language version of which is filed by TotalEnergies SE with the French securities regulator Autorité des Marchés Financiers (AMF), and in the Form 20-F filed with the United States Securities and Exchange Commission (SEC).

View source version on businesswire.com: https://www.businesswire.com/news/home/20240508475320/en/

TotalEnergies Contacts

Media Relations: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR

Investor Relations: +33 (0)1 47 44 46 46 l ir@totalenergies.com

Source: TOTALENERGIES SE

FAQ

Where is the Eldfisk North Project located?

The Eldfisk North Project is located in the Greater Ekofisk Area in the North Sea.

When was the Eldfisk North Project approved?

The Eldfisk North Project was approved in December 2022.

What is the daily production capacity of the Eldfisk North Project?

The Eldfisk North Project will produce 15,000 barrels of oil equivalent per day at peak production.

How many jobs were created by the Eldfisk North Project?

The project has created approximately 4,000 to 4,500 jobs.

What percentage of the contract value was awarded to Norwegian businesses?

Over 80% of the total contract value has been awarded to Norwegian businesses.