TotalEnergies reports dip in Q2 upstream output

TotalEnergies expects to report a 0.1mn barrel of oil equivalent/day dip in production in its second-quarter financial results, amid disruptions in Nigeria and Libya because of security reasons, and a high level of maintenance, but it is predicting "exceptional" refining and chemical performance on the back of high distillate and gasoline cracks, the French major said on July 15.

The company expects its gas, LNG and power trading activities to perform highly, but not as well as the exceptional result in the first quarter. It realised an average gas price of $11/mn Btu for the three-month period, down from $12.27/mn Btu in the previous quarter, but up from $4.43 a year earlier. Its average LNG price was $13.96/mn Btu, up from $13.60 in the first quarter of this year and $6.59 in the second quarter of 2021.

The company sold its oil and other liquids for $102.9/b, up from $90.1 in the previous three months.

TotalEnergies is one of several oil majors to suspend its investments in Russia in response to the war in Ukraine, and is planning to gradually withdraw from the country. It kickstarted this progress earlier this month, striking a deal to sell its 20% stake in the Kharyaga oilfield in north Russia to the project's operator Zarubezhneft.

The company is looking to expand the role of gas in its sales portfolio to 50% by 2030, and consolidate its position among the top three players in the LNG trade. It sold 42mn metric tons of lNG in 2021, and aims to raise this to 50mn mt/yr by 2025, enabling it to maintain a stable global market share of 10%. The company was chosen last month as the first international firm to join Qatar's North Field East LNG expansion project.