HOUSTON, TEXAS (Energy Analytics Institute, 5.Feb.2025) — TotalEnergies chairman and CEO Patrick Pouyanné said Brazil is poised to become the number 1 country in the French company’s portfolio in terms of cash flow from operations (CFFO) in 2025.
4Brazil is 1 of the countries that is successful since it will contribute to this additional free cashl, Pouyanné said 5 Feb. 2025 during the company’s fourth-quarter 2024 (4Q:24) webcast with analysts.
“It’s new. Maybe you did not notice, but in fact since 2015, we have built a portfolio. Today, we will have eight fields producing 180,000 barrels per day. So, it’s a successful story. It’s quite interesting, by the way, to build such a position,” Pouyanné said in response to analysts’ questions around Brazil and Suriname.
Within the upstream space, Brazil is an example of the Paris-based company’s strategic focus on more energy and less emissions. There, TotalEnergies’ portfolio includes 11 licenses, of which 4 are operated. The assets are mainly in ultra-deep areas and in the Campos and Santos Basins’ pre-salt.
In terms of oil prices, Pouyanné said the average margin in Brazil at $70 per barrel was about $35 per barrel.
“And so, in Brazil, we’ll continue to invest because we have two other projects that we sanctioned in 2024, Sepia 2 and Atapu 2, which will contribute to additional free cash in 2030,” Pouyanné said. “But the free cash formula in 2025 at $70 per barrel will be $1.4bn and $10 per barrel would add another $400mn. So, it’s a strong position that we have built since 2015.”
Pouyanné continued: “Again, we operate Lapa, Petrobras is our operator on most of that. And we had access when you look at the history of the cost of access to all this resource. It was in fact quite a good, quite a low countercyclical cost of access. We did not discover them, but between the deals we’ve done with Petrobras in 2015, 2016, then the ToR [Transfer of Rights] rounds where we participated with low competition. We managed to be it’s a good demonstration on how to build a strong position in a new country. We also have some exploration potential, [and] we continue to look to that.”
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