BP and Total Deepen Commitments to US with Major Projects
BP and TotalEnergies, two European oil and natural gas companies, deepened their commitments towards the United States on Monday. BP approved a $5 billion offshore field for oil production and TotalEnergies bought into a gas field onshore.
The goal of U.S. president Donald Trump to capitalize on hydrocarbon resources in the United States is aligned with increased investment in U.S. production of oil and gas.
BP is increasingly reliant upon the United States for its oil and natural gas business, following a February strategic overhaul that shifted spending from renewables towards hydrocarbons.
INCREASING US EXPOSURE
BP has pledged to increase U.S. production by just over 1,000,000 boed or less than half its global target, which is 2.3 to 2.5 million Boed within that time frame.
BP announced that its $5 billion Tiber-Guadalupe Project in the Gulf of Mexico will begin production in 2030. The project includes a floating platform of 80,000 boed to tap into estimated 350,000,000 boe of recoverable resources.
Sources have confirmed that BP is looking to sell minority stakes in Tiber and Kaskida - a Gulf of Mexico project owned by BP.
TotalEnergies, a French rival, announced on Monday that it would purchase a 49 percent stake in Continental Resources’ onshore gas field in Oklahoma. The price was not disclosed.
The company will be able to access low-cost gas upstream by signing deals with clients in Asia to ship the fuel.
TotalEnergies, which purchases 10 million metric tonnes of liquefied gas per year in the United States, is the biggest buyer, but the company's own production is smaller.
The U.S. assets produced about 93,000 boed last year, which is 3.8% of Total’s global production. This is far behind the assets in Africa and Europe, as well as Asia, Latin America, and the Middle East.
Total will soon be able to increase its gas production in the United States to offset its U.S. LNG purchase. Reporting by Sheila Dang, Stephanie Kelly, and America Hernandez, in Houston. Shadia Nasralla is the author. Editing by Margueritachoy, Barbara Lewis, and Mark Potter.
(source: Reuters)
