TotalEnergies SE said on April 27 it had recorded a first-quarter impairment of about $4.1 billion partly related to Arctic LNG 2, an LNG development project in the Russian Arctic that has been hit by sanctions against Russia.
The Arctic LNG 2 facility, located on the Gydan peninsula, was expected to start operations in 2023. However, the plans have been under threat following sanctions by Western powers against Russia in response to its Feb. 24 invasion of Ukraine.
“TotalEnergies has drawn upon the consequences of what has happened. This provision of around $4 billion shows that TotalEnergies is starting to turn the page,” said a spokesperson for the French oil and gas company.
The $21 billion Arctic LNG 2 project is key for Russia’s plans to raise its share of the global LNG market to 20% by 2035, expanding its annual LNG output to 120 million-140 million tonnes from around 30 million tonnes at present.
Analysts have said Russia will need to rethink its aim of attaining the 20% share target in the wake of European Union sanctions against it over the conflict in Ukraine.
Russia’s Novatek holds a 60% stake in the Arctic LNG 2 project, while 10% stakes are held by TotalEnergies, Japan Arctic LNG—a consortium of Mitsui & Co. and JOGMEC—and Chinese firms CNPC and CNOOC.
2022-06-30 - Will the U.S. have enough natural gas come winter? Executive Editor-at-large Nissa Darbonne explores in her monthly column featured in Oil and Gas Investor.
2022-05-31 - Americans appear to agree: leave Russia, take the earnings hits.
2022-05-26 - The Haynesville Shale play’s making more than 14 Bcf/d today, and the world is counting on this Gulf Coast LNG supplier to keep delivering—and more, too.
2022-07-01 - Four years after picking up a Haynesville, Eagle Ford and Delaware Basin package for $10.5 billion, BPX Energy is delivering $1 billion a year in free cash flow to parent BP Plc. CEO Dave Lawler spoke with Oil and Gas Investor Executive Editor-at-large Nissa Darbonne on the company’s 2022 outlook and more.
2022-05-16 - Saudi Aramco, which is at par with Apple Inc. as the world’s most valuable company, reported a net income of $39.5 billion for the quarter to March 31 from $21.7 billion a year earlier.