French oil major TotalEnergies SE was not informed of a U.S. investigation into possible bribery and corruption at Adani Green Energy Ltd., it said on Nov. 25, adding it will stop financial contributions to its Adani Group investments following last week's indictment.
Total holds a 20% stake in Adani Green Energy and has a seat on the Indian company's board of directors.
"Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies," the company said in a statement.
"TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme," the company added.
U.S. prosecutors on Nov. 21 charged eight people - including Indian tycoon Gautam Adani, his nephew Sagar Adani and the former CEO of Adani Green Energy - with promising and then making improper payments to Indian officials between July 2021 and 2024 for business advantages.
The French firm purchased its stake in Adani Green Energy in January 2021 - after the Indian company won what was then the world's largest solar order, and just months before the payments to officials were alleged to have begun.
Total also owns a 37.4% stake in Adani Total Gas Ltd., as well as a 50% stake in three renewable joint ventures with Adani Green Energy.
Two of those joint ventures were entered into after the FBI served search warrants on Sagar Adani and seized evidence related to Adani Green Energy.
TotalEnergies has described India as a key market for developing both its natural gas and renewable energy businesses. Searing heatwaves and an uptick in economic activity have resulted in India's electricity generation growing at an average of about 8% annually following the pandemic year of 2020/21, outpacing power demand growth in every major global economy.
The French firm has repeatedly characterized its relationship with the Adani Group as a "strategic alliance" — 25% of Total's operational renewables portfolio comes from its stakes in Adani wind and solar assets.
Analysts at Bernstein Research estimate TotalEnergies' financial exposure to Adani firms at between $4 billion to $5 billion, or around 3% of capital employed.
TotalEnergies shares were down 0.42% at 11:45 GMT on Nov. 25.
Recommended Reading
SandRidge Recasts Management with New Chairman, CFO
2024-10-03 - SandRidge Energy has appointed Vincent Intrieri as chairman to succeed Jonathan Frates, who will transition to the role of executive vice president and CFO.
Post Oak Backs Third E&P: Tiburon Captures Liquids-rich Utica Deal
2024-10-15 - Since September, Post Oak Energy Capital has backed new portfolio companies in the Permian Basin and Haynesville Shale and made an equity commitment to Utica Shale E&P Tiburon Oil & Gas Partners.
ONEOK Replaces Three EnLink Board Directors Post Acquisition Close
2024-10-16 - Three Global Infrastructure Partner directors are being replaced on EnLink Midstream’s board of directors by members of ONEOK’s executive leadership team.
Dividends Declared Week of Nov. 4
2024-11-08 - Here is a compilation of dividends declared from select upstream and midstream companies in the week of Nov. 4.
Oxy’s Hollub Drills Down on CrownRock Deal, More M&A, Net-zero Oil
2024-11-01 - Vicki Hollub is leading Occidental Petroleum through the M&A wave while pioneering oil and gas in EOR and DAC towards the goal of net-zero oil.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.