By Patience Chat Moses
TotalEnergies has announced plans of investing $18 billion annually to increase its oil and gas production as part of its newly released strategy.
The oil major disclosed this on Wednesday as also plans to boost shareholder distributions as it expects to return around 44 per cent of cash flow from operations to shareholders in the current year and allocate $1.5 billion from divestment proceeds of Canadian assets to share buybacks, reaching $9 billion.
TotalEnergies said it plans to grow its oil-and-gas production by 2 per cent to 3 per cent a year over the next five years, mainly from liquefied natural gas.
The oil and gas business is expected to generate more than $3 billion of additional underlying cash flow in 2028 compared to 2023 levels at constant prices, it said.
In regards to its low-carbon portfolio, the Company said it aims to increase power generation to more than 100 terawatt-hours by 2030 by investing $4 billion per year.
It also plans to increase cash flow to more than $4 billion by 2028 from around $2 billion in 2023.
The Company further said that it is building a portfolio that combines renewables, combined-cycle power plants and storage, with the aim to achieve a return on average capital employed of around 12 per cent.