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118-563: Papua New Guinea has exported liquefied natural gas (LNG) since 2014. The LNG sector is important to PNG's economy with US$ 2.95 billion in exports in 2020, and accounting for 5.25% of the GDP in 2019. On a global scale, PNG is a minor player, with 0.08% of world reserves In 2020, PNG was ranked 16th on the list of gas exporting countries. There are five LNG projects in PNG; only the Hides Project

236-763: A private sector company in view of its listing on the Paris Stock Exchange in 1929. During the 1930s, the company was engaged in exploration and production, primarily from the Middle East. Its first refinery began operating in Normandy in 1933. After World War II, CFP engaged in oil exploration in Venezuela, Canada, and Africa while pursuing energy sources within France. Exploration in Algeria , then

354-510: A snow removal vehicle in Vnukovo International Airport , killing four, including three crew members and CEO of Total S.A. Christophe de Margerie on board. Alcohol presence was confirmed in the blood of the driver of the vehicle on the ground. Patrick Pouyanne , who was Total's Refining Chief at that time, was appointed as CEO, and also as chairman of Total in 2015. In 2015, Total unveiled plans to cut 180 jobs in

472-524: A $ 1.1bn deal, to boost its development in renewable energy and electricity businesses. In 2016, Total agreed to acquire $ 2.2-billion in upstream and downstream assets from Petrobras as part of the firms' strategic alliance announced earlier that year. For Total, these new partnerships with Petrobras reinforce Total's position in Brazil through access to new fields in the Santos Basin while entering

590-485: A 19.4% share. About US$ 800 million was contributed to the construction of the project and the mining rights. This payment was to be made following the FID. A concurrent phase in the project was the front end engineering Design (FEED) which raised the project's cost, which required the share to be financed by equity. As a result, the PNG government had to find US$ 1 billion when the FID was made on 12 August 2008. In early March 2009

708-505: A 40 percent interest in two licences in the Gainsborough Trough area of northern England for $ 48 million. In July 2014, the company disclosed it was in talks to sell its LPG distribution business in France to Pennsylvania-based UGI Corporation for €450 million ($ 615 million). On 20 October 2014, at 23:57 MST , a Dassault Falcon 50 business jet heading to Paris caught fire and exploded during takeoff after colliding with

826-761: A 50% stake in its joint venture in Malaysia (SapuraOMV) for $ 903 million. The deal includes the repayment of a $ 350 million loan from OMV to the joint venture. On 21 February 2024, TotalEnergies and Airbus entered a strategic partnership to meet emission-reduction goals through the use of sustainable aviation fuels (SAF). TotalEnergies will provide more than 50% of Airbus’ European fuel requirements. Compared to fossil fuels, SAF can reduce CO2 emissions by up to 90%. TotalEnergies and QatarEnergy entered an agreement on 6 March 2024 to purchase participating interests in South Africa ’s Orange Basin offshore oil field. Under

944-581: A French colony, began in 1946, with Algeria becoming a leading source of oil in the 1950s. In 1954, CFP introduced its downstream product – Total brand of gasoline in Africa and Europe. Total entered the United States in 1971 by acquiring Leonard Petroleum of Alma, Michigan and several Standard Oil of Indiana stations in Metro Detroit . In 1980, Total Petroleum (North America) Ltd.,

1062-604: A London court of arbitration. Oil Search claimed to have priority rights (pre-emptive rights) in buying into Interoil because of its acquisition of Pac LNG. Total continued to be present in Papua-LNG but at a reduced rate of 40% instead of 60%. Interoil remained with an interest of about 40% in the Elk-Antelope gas field. Oil Search made a bid for Interoil's remaining shares in the gas field for US$ 3 billion. OilSearch had to concede to ExxonMobil: they offered US$ 2.2.billion for

1180-528: A PDL (Petroleum Development License) and abolished the option of arbitration in case of a conflict. The minister stressed in parliament that these withdrawals were only applicable to Papua/LNG. A Petroleum Retention License extension was also awarded in February 2021. Such a license allows for project financing activities and also strategic market studies, which will be done separately by the participating companies or with other participants. The work programme for

1298-514: A capital injection through the botched attempt to gain shares through the UBS loan. The agreement on Papua-LNG expected a shareholding of 22.25 percent in Papua LNG that is expected to be paid from the project's income. Ken Ail Kaepai of PNG University of Technology sketched the dilemma as follows: “Under this arrangement, the dividends will be delayed over more extended periods required for allowing

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1416-479: A company controlled 50% by CFP, bought the American refining and marketing assets of Vickers Petroleum as part of a sell-off by Esmark of its energy holdings. This purchase gave Total refining capacity, transportation, and a network of 350 service stations in 20 states. Total's leadership had been aware of the deleterious effects of global warming since at least 1971; The company nevertheless openly denied

1534-437: A company that had experience the development and management of a gas field. Shell and ExxonMobil were mentioned as possible partners when Interoil entered negotiations. The investment bank Merrill Lynch (now called Merrill (company) was also involved. However, at the end of 2012 Interoil did not manage to find a partner to reach a Final Investment Decision (FID) and were in danger of losing the licence. A proposal suggested that

1652-607: A concern about the gas agreement. He denied all accusations and considered them lies for political purposes. He stressed that none of the members of the State Negotiating Team had publicly spoken negatively about the agreement. The agreement on the Elk-Antelope gas field became the core of political controversies about PNG's policies with respect to natural resources. It led to Peter O'Neill O'Neill's resignation. His successor, James Marape, announced changes in

1770-472: A consortium led by CNPC (37.5%), which also included TOTAL (18.75%) and Petronas (18.75%) was awarded a production contract for the " Halfaya field " in the south of Iraq, which contains an estimated 4.1 billion barrels (650,000,000 m ) of oil. In 2010 Total and Erg merged their respective subsidiaries Total Italia and Erg Petroli , forming TotalErg , 49% controlled by the French group and 51% by

1888-502: A defined timeframe." The energy companies were not willing to take that into consideration and talks broke down between government and the companies on 31 January 2020. Prime Minister Marape sounded confident that progress on the Papua LNG project with lead developer ExxonMobil would continue. Three new trains to convert natural gas into LNG were planned to treat the gas from Papua-LNG as well as from P’nyong. The energy companies wanted to only proceed with preliminary engineering and design for

2006-535: A direct equity stake in the LNG venture." The latter was expected to be much more profitable: The government also expected to raise more money from the equity participation in LNG-PNG than from Oil Search dividends. It was expected that the revenue stream from the LNG project would redeem the loan. Arthur Somare was the government minister in charge of public companies (IPBC) and the LNG project. Morauta challenged Somare when

2124-420: A discounted and fixed price. There are strong provisions for third party access to infrastructure and national content." However, the agreement was immediately controversial. Some of the initial criticism came from Hela province, the locus of LNG PNG where benefits should have appeared. Philip Undialu , Governor of Hela Province, submitted a long list of critical questions. Minister of Finance James Marape , who

2242-508: A gas project sourcing the Hides gas field to export LNG to the Asian market. The project was completed in 2014 after rapidly completing planning and construction phases: When the proposals for an LNG facility in PNG were raised there were two factions in the cabinet: one headed by Prime Minister Michael Somare who advocated a partnership with InterOil to develop the Elk-Antelope gas field, and

2360-400: A high base to the world market price while it is domestically supplied. At the time of the agreement's conclusion, doubts returned in regards to the field's value. Interoil had always presented the Elk-Antelope gas field as their own original find. That is not true; there is an earlier explorative team in the area that found gas, but doubted whether the field was exploitable. A whistleblower in

2478-475: A joint venture called Saudi Aramco Total Refining and Petrochemical Company (SATORP)- in which a 62.5% stake was held by Saudi Aramco and the balance 37.5% held by Total. Total withdrew in 2006 from all Iranian development work because of United Nations concerns that resulted in sanctions over possible weaponization of the Nuclear program of Iran . During the 2009–2010 Iraqi oil services contracts tender ,

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2596-405: A leadership tribunal for Marape and O'Neill. The Commission found fifteen breaches of procedure. The most important breach may be that parliament was not asked to approve the loan as this was constitutionally required. Much of the loan was shrouded in mystery and there suspicions about parties benefiting themselves. The suspicions were warranted as there was a bridging loan of A$ 335 million covering

2714-482: A loan which was never tabled in Parliament. It was negotiated and signed behind closed doors by people with no experience in the complex world of international high finance." He criticised technicalities of the loan: "The loan was drawn half a year before it was needed for financing and this led to a loss of interest. Currency risk was not hedged either. The most fundamental criticism was that A longer running time of

2832-689: A non disclosure agreement with Twinza oil. He also insisted that the top management of the company would be resident in Port Moresby instead of flying in from Australia. The deadline was set at 9 September 2021. Twinza oil was not willing to comply. The CEO of Twinza oil left his job because of frustration with government negotiations in October 2021. The proposed benefits for the PNG government vary between 50 and 60% and are multifarious including corporation tax, production retained for local consumption, development levy etc. There are no precise indications of

2950-404: A number of non-binding statements of intent. His most important statement was that in the future, contracts would be made on the basis of a Production sharing agreement which would lead to early free cash flows in petroleum and mining contracts. Kua stated on return from Singapore that The Papua-LNG project would proceed as planned.In fact notiations were Broken off and preparation for the project

3068-405: A policy of production sharing. He deplored the borrowing for equity from the past, but did not come out against equity ownership of the government. On the contrary: the statement left the possibility of 100% state ownership open. The Chamber of Mines deplored the proposals. It also queried whether government debt was due to participation in mining. It seemed that government policy on natural resources

3186-545: A shareholding in LNG PNG. This exchange came at a substantial cost of contracting and servicing a loan and an additional payment. The government of PNG has not acquired a shareholding in Papua-LNG through Oil Search despite the cost of contracting and servicing a loan plus unknown extra payments. The energy companies benefited from a capital injection in PNG LNG through the government's shareholding. Oil Search has benefitted from

3304-497: A shorter period. The interest was 5%. When the loan matured in 2014 the share price was around A$ 8.55 and IPIC wanted the shares as repayment for the loan. The PNG government sent a delegation to Abu Dhabi in an attempt to dissuade them and accept cash. They refused and the Oil Search shares were transferred from the PNG government to IPIC. The share price also fell back and PNG had to add US$ 70.8 million. This financial construction

3422-523: A vast pool of natural gas potentially larger than the United States' total residential consumption of the fossil fuel in 2005. The size of the discovery was so large, Phil E. Mulacek, chairman and chief executive, informed an analyst, that simply controlling its output 'was sort of like trying to stop the Mississippi.'" An agreement was made between Interoil and the PNG government to proceed towards exploitation on one condition: Interoil had to partner with

3540-474: Is estimated to be at 7.1 trillion cubic feet and Elk-Antelope at 6.43 trillion cubic feet. The development of this gas field would require relatively fewer expenses: the pipeline from Hides to the coast would only need to be extended inland. At the Caution Bay loading point it would need one extra train to condense the gas for shipping, which would mean building one extra train besides the two extra trains for

3658-471: Is expected to begin when the construction of Papua LNG is completed in 2228 and production could then start in 2232. Exxon Mobil declared that the agreement sets a clear framework for development, but it is not a guarantee that the project will go ahead. The Western Gas Project is the fourth LNG development. Central in this proposal are four drilled gas fields in the Western Province. Horizon oil

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3776-501: Is for 70 percent self-sufficient for electricity supply in 2030. The State and landowners are not obliged to pay for their equity (US$ 900 million) before revenues start coming in. Payment for the Interoil shares by ExxonMobil is partly deferred until the FID and first shipments are made. Interoil retains residual rights to income from the gasfield if it performs above certain expectations. Pac-LNG has retained residual rights to income if

3894-400: Is fully operational. An agreement was made between the PNG government and a consortium of companies to develop the second project: the "Elk/Antelope" field. These companies cooperate under the Papua-LNG project. The development of the third project, the "P'nyang Gas Field", is in an advanced planning stage. The fourth LNG project in development is the "Western Gas" field. The fifth Pasca gasfield

4012-454: Is offshore. The benefits of LNG development for the country is a controversial issue. Government participation in the projects is controversial and has been a dominant theme in PNG politics in the past decade. It became a major issue in the events leading to the resignation of Peter O'Neill as prime minister. The Hides gas field is the main field operated by PNG LNG and was discovered in 1987 by BP , who sold it to Oil Search . Originally,

4130-447: Is only a commitment of a small proportion of the necessary cash for construction. The cash paid for the gas field is for the shareholders of Interoil and is not working capital for Papua-LNG. Nothing has been built or constructed with that money: it is merely a sum paid in the expectation of predicted income, which contrasts with investing in a company that started from scratch. The project is expected to be financed from loans for 70%; where

4248-420: Is that the project will generate also much condensate, oil that comes with the gas extraction. The project has been the subject of a conflict with the government because permits were cancelled. This was solved amidst allegations of corruption. An inquiry concluded that nothing inappropriate had happened and the PNG government did not follow up the accusations. Pasca gas field is the first offshore gas project in

4366-561: Is the biggest discovery of oil reserves since 1968. In 2013, Total increased its stake in Novatek to 16.96%. In 2013, Total and its joint venture partner agreed to buy Chevron Corporation 's retail distribution business in Pakistan for an undisclosed amount. In January 2014, Total became the first major oil and gas firm to acquire exploration rights for shale gas in the UK after it bought

4484-472: Is the major partner in these. Most of these interests have been bought from Repsol , a Spanish company. The Chinese company Balang also bought interests in the fields from Repsol . Repsol maintained interest in the field. after selling off shares. Kumul Petroleum holdings , the PNG state company is another partner. Brent Emmer , the chief Executive Officer of Horizon declared in 2017 that pre-Feed studies (concept engineering and design were ready. It entails

4602-492: The Bank of Papua New Guinea , which urged the government to be less generous with tax concessions. The policies with respect of tax and natural resource projects had led to less availability of foreign exchange and had not strengthened tax revenues. In 2018, PNG had a strong positive balance on the current account, which should have led to an increase in foreign exchange that never happened. Deputy Prime Minister Charles Abel criticised

4720-482: The Girassol oil field was discovered and operated by TotalEnergies SE. After Total's takeover of Petrofina of Belgium in 1999, it became known as Total Fina. Afterwards, it also acquired Elf Aquitaine . First named TotalFinaElf after the merger in 2000, its name reverted to Total in 2003. During that rebranding, the globe logo was unveiled. In 2003, Total signed for a 30% stake in the gas exploration venture in

4838-646: The Tour Total in La Défense district in Courbevoie , west of Paris . The company is a component of the Euro Stoxx 50 stock market index . In the 2023 Forbes Global 2000 , TotalEnergies was ranked as the 21st largest company in the world. The company was founded after World War I, when petrol was seen as vital in case of a new war with Germany. The then-French President Raymond Poincaré rejected

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4956-667: The 25% share held by Deutsche Bank in the Turkish Petroleum Company (TPC) as part of the compensation for war damages caused by Germany during World War I . The French government's stake in TPC was transferred to CFP, and the Red Line agreement in 1928 rearranged the shareholding of CFP in TPC (later renamed the Iraq Petroleum Company in 1929) to 23.75%. The company from the start was regarded as

5074-606: The Department of Energy has brought this in the open again at the time of signing the agreement. According to the report, the field had five major problems: the gas was probably not as extensive as predicted, not easily extractable, high water content, low quality gas, required expensive treatment, and the field's geology is suspect. Fok, the Minister of Mining, replied to the Governor of Hela province , Philip Undialo, who had

5192-509: The Elk-Antelope fields with a 31.1% interest. The partners are ExxonMobil (28.3%) and Oil Search (17.7%). The plan assumed that construction is 70% debt financed. Oil Search had the management contract for the upstream facilities while ExxonMobil managed the gas liquefaction plant and loading bay. The latter facilities would be built at the same place near Port Moresby as installations serving LNG/PNG. The agreement contained an obligation to provide gas for domestic use (a reserved 5%) so that PNG

5310-496: The Elk-Antelope gas field. Synergies are expected. ExxonMobil has been the main actor in this field and as lead operator owns 49% That is including its subsidiary Ampolex. Oil Search was originally a partner in the project before it was bought by Santos. Santos has after absorbing Oil Search 28% interest. JX Nippon operates through Merlin Petroleum company, its subsidiary ,has a12.5% interest respectively. Exxon Mobil will work with

5428-582: The European nation’s commitment to fossil fuels beyond 2050. In 2023, Total invested $ 300 million in a renewable energy joint venture with Adani Green Energy . The joint venture's portfolio capacity is 1,050 MW - 300 MW of operating capacity, 500 MW of solar projects under construction and 250 MW of projects under development, as well as solar and wind power projects in India . At the end of January 2024, TotalEnergies reached an agreement with OMV to purchase

5546-473: The Extension includes technical activities in preparation for the front-end engineering and design work. A pre-Front End Engineering Design (FEED) program does not guarantee a permission for a FEED. The aim remains to announce a FEED in 2022 and a Final Investment Decision (FID) in 2023. Production is expected in 2017. The agreements reached have a peculiar mixture of being definite and being provisional. This

5664-501: The Front End Engineering Design process. The Final Investment Decision (FID) that makes construction possible is expected in 2020. Output is expected to flow in 2024. In 2011 the FID was expected in the same year. In 2017 the first LNG exports were expected in either late 2020 or early 2021 The new dates are also speculative because the financial underpinning of the announced agreement is virtually absent. There

5782-455: The Gulf of Papua New Guinea. It entails a production platform as well as loading capacities offshore. Twinza oil holds the licence. The field is known since 1988 but the technical capacity to develop the field is according to Twinza recent. A prospecting permit was issued in 2011.The company has been very optimistic about the stage of preparation: pre FEED work is completed in 2020. Negotiations with

5900-538: The IPIC loan concluded; he criticised Arthur Somare's position as minister in charge of IPBC and the use of his position to monopolise negotiations about the loan. From the beginning, he criticised the mortgages of national assets (the government's shares in Oil Search). Morauta became the minister of IPBC in 2011 and reiterated his criticisms: "A loan in which Treasury was not involved; a loan which never had NEC approval;

6018-644: The Independent Public Business Corporation, the Papua New Guinea Liquefied Natural Gas Global Company LDC and, finally, Oil Search Limited". The Commission of inquiry into the UBS loan would pay attention to the fees paid to brokers and negotiators. Third, the loan was supposed to be redeemed for a long time before one could expect revenues from the Elk-Antelope gas field to repay it. It was expected to be serviced from

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6136-659: The Iranian South Pars gas field because of sanctions pressure from the US. In 2019, Total announced the sale of a 30% stake in the Trapil pipeline network to crude oil storage operator Pisto SAS for €260 million. Later that year, Total signed deals to transfer 30% and 28.33% of its assets in Namibia 's Block 2913B and Block 2912 respectively to QatarEnergy . The company will also transfer 40% of its existing 25% interests in

6254-584: The Italian one. As of 2010, Total had over 96,000 employees and operated in more than 130 countries. In 2010, Total announced plans to pull out of the forecourt market in the United Kingdom. In 2012, Total announced it was selling its 20% stake and operating mandate in its Nigerian offshore project to a unit of China Petrochemical Corp for $ 2.5 billion. In 2013, Total started the operation at Kashagan with North Caspian Operating Company . It

6372-600: The Kingdom of Saudi Arabia (KSA) – South Rub' al-Khali joint venture along with Royal Dutch Shell and Saudi Aramco . The stake was later bought out by its partners. In 2006, Saudi Aramco and Total signed a memorandum of understanding to develop the Jubail Refinery and Petrochemical project in Saudi Arabia which targeted 400,000 barrels per day (bpd). Two years later, the two companies officially established

6490-604: The Orinduik and Kanuku blocks of Guyana and 25% interest in Blocks L11A, L11B, and L12 of Kenya to QatarEnergy. In July 2020 the company changed its name from Total SA to Total SE as part of registration as a European company. In 2020, the company announced its intention to cut 500 voluntary jobs in France. In 2021, Total left the American Petroleum Institute lobby, due to differences in

6608-482: The PNG government acquired the sum through a loan from IPIC (International Public Investment Corporation; part of Mubadala Investment Company ), a sovereign fund from the government of Abu Dhabi . It was not an ordinary loan, but an Exchangeable bonde . IPIC acquired the right to either be repaid in cash or through the security in the loan: PNG's equity in Oil Search Limited. These shares ideally would, at

6726-556: The PNG government for a Petroleum Development License (PDL) started in May 2020 and were concluded with a non binding agreement in September 2020. It was non binding because there was still fundamental disagreement on the government off take of the benefits. Negotiations were again protracted: an expected signing of a contract was cancelled in July 2021. Kua, the minister in charge then demanded

6844-399: The PNG government regarding their interest in additional equity in the project. Negotiations with the government broke down in 2019, but were resumed in 2021 Agreement was reached in February 2022: three years after breaking off negotiations. The PNG government considered the deal reached very favourably. Prime Minister Marape claimed a government take of 63% in this deal as compared to 49% in

6962-425: The PNG government would become a 50 percent shareholder instead of taking the proposed equity of 22.3 percent. It was denied because the government did not have the money and it would not solve the problem of expertise. The French multinational Total SE is a major company in the oil and gas industry and they filled the void by buying a 60 percent interest in the gasfield. Oil Search Company entered negotiations around

7080-654: The PNG/LNG project and 51% in the Papua LNG project. The agreement gives 34.5 per cent of the equity in the project to the PNG State, significantly more than the 22.5 per cent for the TotalEnergies-led Papua LNG project or the 19.6 per cent for PNG's first gas project, PNG LNG. Exxon said it will work with the PNG government regarding their interest in additional equity in the project. It will offload shares to provide for landowner interests, Construction

7198-581: The SHPGX. In July 2023, Iraq signed a $ 27 billion energy agreement with TotalEnergies to develop the country’s energy sector and boost output of oil, gas and renewables. Additionally, Indian Oil Corp , has signed liquefied natural gas (LNG) import deals with ADNOC LNG and TotalEnergies in the same month. In October 2023, TotalEnergies sold its Canadian operations to Suncor Energy for C$ 1.47 billion($ 1.07 billion). TotalEnergies has agreed to buy liquefied natural gas from Qatar for 27 years, cementing

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7316-524: The State to repay the equity capital sourced from external lending institutions or will enable the investor to recoup its equivalent equity capital cost internally using future positive cash flows from the project.” Kerenge Kua, the minister of mines gave the most comprehensive statement on mining policies so far to a webinar of the PNG Chamber of Mines. He advocated moving from a concessionary statement to

7434-472: The United Kingdom, reduce refinery capacity and slow spending on North Sea fields after it fell to a $ 5.7bn final-quarter loss. The company said it would also sell off $ 5bn worth of assets worldwide and cut exploration costs by 30%. In 2016, Total signed a $ 224M deal to buy Lampiris, the third-largest Belgian supplier of gas and renewable energy to expand its gas and power distribution activities. In 2016, Total bought French battery maker Saft Groupe S.A. in

7552-580: The agreement is provisional; there was no APDL at the time. None of the members of the SNT (State Negotiating Team) publicly broke ranks with government, but there were strong statements claiming that this team, as well as the Department of Petroleum, have been sidelined. Morauta distributed a letter from the Department of Energy to the Secretary of the Government, which demanded that a proper APDL be made with

7670-545: The agreement, TotalEnergies will have the exclusive right to operate its wells in Block 3B/4B with a 33% interest holding, while QatarEnergy will receive a 24% interest in the same block. In 22 April 2024, OmanLNG and TotalEnergies signed a deal in which OmanLNG will provide 800,000 metric tons of liquified natural gas. On 14 November, 2024, TotalEnergies announced that it will fill all of its upstream assets with real-time methane leak detection equipment by 2025 to help minimize

7788-513: The benefits of natural resource projects for PNG. Abel collaborated with Minister of Mining Fabian Pok on the government negotiating team for the Papua-LNG project. He was content about the agreement: "We made compromises, but he considered it a significant improvement over the PNG LNG project: this Agreement provides earlier, less risky flows to the State, reduces the States financing burden to buys its shares, and provides some gas for domestic use at

7906-542: The common vision of how to tackle the fight against climate change. In 2021, Total said that it had registered an income of $ 3 billion for the period of January–March, which is close to the levels registered before the pandemic. In 2021, the company announced a name change to TotalEnergies as an intended illustration of its investments in the production of green electricity. At the Ordinary and Extraordinary Shareholders’ Meeting in May of that year, shareholders approved

8024-410: The companies could export their income to a destination where little or no tax was paid without any taxation by the PNG government. Two of the participating companies – Total and ExxonMobil – would also have a steady income stream from the management contract. The companies would also have been exempt from paying GST, import, duties, and taxes on project goods and consumables. The management of the project

8142-561: The company's stock but by 1996 had reduced its stake to less than 1 percent. In the period between 1990 and 1994, foreign ownership of the firm increased from 23 percent to 44 percent. Meanwhile, Total continued to expand its retail presence in North America under several brand names. In 1989, Denver, Colorado –based Total Petroleum, Total CFP's North American unit, purchased 125 Road Runner retail locations from Texarkana, Texas –based Truman Arnold Companies. By 1993, Total Petroleum

8260-474: The construction of a processing (conditioning) plant at the wellheads to separate the oil (condense) from the gas, a separate pipe line to Daru , and the construction of a liquefaction plant in Daru. ( There has been no significant follow up. It is a mooted point whether it should be a stand alone project or whether it should be integrated in the operations of LNG-PNG and Oil Search in the highlands.The expectation

8378-519: The contentious issue in the fall of the O’Neill/Abel government. The signing of a Fiscal Stability Agreement in February may in this respect be more important as this concerns the most crucial issue: government income from the project. Government has given in more through withdrawing the amendments 2020 to the Mining Act. These amendments gave among others greater powers to the minister in determining

8496-505: The costs of acquiring the shares besides the substantive collared loan of A$ 904 million to cover the price of the Oil Search shares. The Ombudsman Commission's report found that "it involved different contracts being signed between at least eight different parties including the PNG State, UBS AG, UBS Nominees Pty Ltd, UBS Securities Australia Limited, the National Petroleum Company of PNG (Kroton) Limited and its parent,

8614-508: The debate around the IPIC loan. First, the loan concluded by bypassing the legally required channels and the little consultation that took place was careless. For example, the board of the State Petroleum organization was presented with a decision that they were expected to follow and concerns were ignored. PNG's National Executive Council (NEC) was also confronted with a prepared statement. The treasurer, Don Polye , refused to sign and

8732-490: The energy companies were only willing to grant minor concessions. Kua had to accept the terms of the Papua-LNG agreement, but he insisted that the agreement for the P’nyang gas field should offer considerably better terms: "In the P’nyang talks, the government appears to be seeking a better tax take, more local content and jobs opportunities, more project information from the operator, and a firm commitment to development of P’nyang in

8850-425: The expansion of its PNG LNG plan with new trains after a Petroleum Development Licence was given for the P’nyang field. The result was a stalemate. Landowner interests are a further complicating factor. An umbrella organisation of landowners groups covering the area of operation of Papua/LNG went to the courts in order to ask for a temporary injunction against the continuation of developing Papua-LNG. The court allowed

8968-505: The findings of climate science until the 1990s; Total also pursued a number of strategies to cover up the threat and contribution to climate change . The company renamed itself Total CFP in 1985, to build on the popularity of its gasoline brand. Later in 1991, the name was changed to Total, when it became a public company listed on the New York Stock Exchange . In 1991, the French government held more than 30 percent of

9086-444: The gas field is certified at about 6.5 trillion cubic feet, compared to the estimated 7.1 trillion cubic feet in Hides and associated fields. While planning and implementation of the LNG PNG project did not encounter problems, the Elk-Antelope gas field project was mired in political and technical controversies. Two relatively small oil and gas companies were major players in the Elk-Antelope gas field: Interoil and Oil Search. Interoil

9204-491: The gas value chain. Between 2013 and 2017, Total organized the ARGOS Challenge , a robotic competition with the aim to develop robots for their oil and gas production sites. It was won by an Austrian-German team using a variant of the taurob tracker robot. In 2017, Total signed a deal for a total amount of $ 4.8b with Iran for the development and production of South Pars , the world's largest gas field. The deal

9322-657: The idea of forming a partnership with Royal Dutch Shell in favour of creating an entirely French oil company. At Poincaré's behest, Col. Ernest Mercier , with the support of 90 banks and companies, founded Total in 1924, as the Compagnie française des pétroles (CFP) (in English, the French Petroleum Company). As per the agreement reached during the San Remo conference of 1920, the French state received

9440-465: The idea was to transport the gas through a pipeline to Australia. Chevron was the big fossil fuel company that would carry it forward. It came close to a production phase but the project was dropped in 2007 after Australian customers dropped out of the conditional sales agreements. At present Australia exports a manifold of LNG compared to PNG and the project would not be of interest for that market anymore. In 2008 ExxonMobil assumed leadership to develop

9558-406: The income from PNG LNG. However, according to the treasury secretary Diari Vele , the PNG government could only expect revenues to flow after 2020 when investment costs were recouped. The investment costs had to be settled out of depreciation charges to pay off the loans to the highly geared project. The loan had to be repaid in 2016 and Morauta wondered how that had to be repaid. Ultimately, the loan

9676-412: The landowners to delay the issue of a Production Development Licence until a new agreement was negotiated and a new Petroleum and Gas Act was in place. Among the landowners' demands were production sharing and at least 50% PNG ownership. Policies did not reflect much on the attempts to gain equity in the projects. The PNG government has lost its shareholding in Oil Search and exchanged them in practice for

9794-571: The launch on the French residential market of Total Spring, a natural gas and green power offering that is 10% cheaper than regulated tariffs. Total is thus pursuing its strategy of downstream integration in the gas and power value chain in Europe. On 10 January 2018 TotalErg was acquired by Gruppo API , with the exception of the Special Fluids division, acquired by the newly formed Total Italia . In 2018, Total officially withdrew from

9912-473: The licence for the Pandora Garfield and gave it to the parastatal Kumul Petroleum Holdings. The projection of equity participation finances in LNG projects is a major issue in the politics surrounding LNG projects. The Mining Act in PNG allowed government participation to be involved to have a share of a maximum of 30 percent in natural resources projects; In the case of PNG LNG this was projected as

10030-501: The loan capital would come from is undetermined. The agreement was also politically controversial. Authoritative voices had argued that the mistakes of LNG PNG should have been avoided. O’Neill agreed, though he also said that there should be an "environment for our development partners to maximise returns on their investment". He was under pressure from a comment in the March Monetary Policy Statement from

10148-402: The loan could have resulted in financing it from the income stream of PNG/LNG. That was due to early maturing of the loan not realistic." The government of PNG lost its equity in Oil Search after the IPIC loan was redeemed and had exchanged it for equities in LNG PNG. O’Neill wanted to redress this situation with a new shareholder in Oil Search, who was looking for fresh capital to buy a stake in

10266-520: The loan; it was a " collared loan ", which implied hedging one's bets on the movement of share prices – the high and low were the collar – in order to guarantee a loan purchasing the shares. The risks for the bank were reduced because the loan was to be serviced directly from an Escrow account in Singapore where PNG's income from LNG PNG was paid. UBS had a first claim to the money, The finances were controversial since its inception and were similar to

10384-511: The loss at US$ 254 million. Income from natural resources in PNG projects were far below international standards, according to authoritative institutions ( OECD , IMF and IETI Extractive Industries Transparency Initiative ). It was thus understandable that renegotiation of the Papua/LNG agreement was a priority for the Marape government after coming to power. Kua reopened negotiations. However,

10502-605: The major shareholder we will have to meet capital calls when required and bear operating risks like other shareholders.We don't need to do this”. Hides gas field Too Many Requests If you report this error to the Wikimedia System Administrators, please include the details below. Request from 172.68.168.133 via cp1102 cp1102, Varnish XID 549829655 Upstream caches: cp1102 int Error: 429, Too Many Requests at Thu, 28 Nov 2024 05:44:48 GMT Total SE TotalEnergies has its head office in

10620-584: The management contract. The third area of criticism concerned the domestic gas obligations of the project. The domestic provision of gas was an option to 5% of the output in the agreement. The agreement was also in contravention to the National Energy Policy which demanded that 15% of all gas output was available for domestic use. The agreement mentions the only provision of gas for electricity supply ignores possible wider industrial use. Gas would also have been expensive as it would be indexed from

10738-399: The management of PNG's natural resources in his maiden speech, though at the same time he was keen to reassure investors: "He did not intend to chase industry away, but asserting that reforms were needed to ensure benefits are spread more evenly." Oil Search's Peter Botten proclaimed immediately after Marape's appointment that it was likely that nothing would change and arrangements would remain

10856-455: The money was reserved for when the process of identification is complete, without clarifying where the money was. It was seen as a cardinal mistake in the PNG LNG project that this identification was not completed before the start of the project. Therefore, landowner groups should have been identified before the APDL (Application for a Petroleum Development Licence) was submitted. Abel defended it as

10974-464: The name change to TotalEnergies. In 2022, TotalEnergies announced it would end all operations in Myanmar , citing rampant human rights abuses and deteriorating rule of law since the 2021 Myanmar coup d'état and has also called for international sanctions targeting the oil and gas sector in the country, which is one of the main sources of revenue for Myanmar's government. As of 11 March 2022, Total

11092-448: The necessary documentation about the field's size and its economic viability. Total should have provided ten documents that were absent or deficient, but they did not follow up on requests. The necessary information for decision making was not there and the required procedure was not followed. Second, the tax arrangements are similar to the ones in LNG PNG. The State agreed with the ongoing operational and depreciation costs. Depreciation in

11210-551: The next LNG project: the Elk-Antelope gas field. They needed US$ 900 million to buy the share of Pac LNG group in that field. Oil Search issued new share capital to finance this acquisition. These shares were bought by the government of PNG and financed with a loan from the Australian branch of the UBS bank. This loan was similar to the IPIC loan to finance shares in LNG PNG: the shares that PNG bought in Oil Search were security for

11328-460: The other by his son Arthur Somare, who advocated a partnership with ExxonMobil/Oil Search to develop the Hides gas fields. Somare's son won, but once PNG/LNG became operational, attention went to Interoil's Elk-Antelope Gas Field. The fields are located in a marshy area in the eastern margin of the Papuan Basin to the west of Port Moresby (90 km from the Gulf of Papua coast). The size of

11446-500: The output is beyond a certain expectation. Total deferred cash payments for equity to the date of the FID (US$ 230 million). The Memorandum of Understanding between the PNG government and the companies involved in the Elk-Antelope field was announced at the end of the A Asia-Pacific Economic Cooperation (APEC) conference in 2018. Its intent was to support PNG's international status, and it was followed by an agreement in April 2019 to start

11564-418: The project was tied to the repayment of loans. Profitability was predicted to be low until the loans were repaid with interest. If the participating partners furnished the loan capital themselves they would have assured themselves of a steady income stream irrespective of profitability. The faster the depreciation the less profit would have been made. Tax on interest or dividends would not be withheld, which meant

11682-415: The remaining shares of Interoil in the gasfield. However, Mulacek had been replaced by Michael Hession as CEO in 2013. Nevertheless, Mulacek challenged the deal in courts and in the shareholders meeting, but was defeated in both instances. The pattern of fierce competition and shifting alliances resulted in the following shareholding and proposed structure for the project: Total is the largest shareholder of

11800-536: The same time. It was already a stakeholder in the LNG PNG project and it extended its interests by buying into the Elk-Antelope gas fields, and they bought the Pac LNG group that had a 22.8% stake in the gasfields and paid about US$ 900 million for participation. The money was sourced from equity bought by the PNG government and financed from a loan from the Swiss bank UBS . Oil Search contested Total's participation before

11918-417: The same when the third gas field Pn'yang came into production. Botten did not expect any significant new concessions on the dea,. which led to a bristling reply from Marape, yet he remained vague as regards to envisioned changes. Minister for Petroleum and Energy Kerenga Kua announced two months after the change of government that a revision of the "regulatory and commercial terms of the so called LNG agreement

12036-526: The subject for further negotiations. The expectation was in July 2021 before negotiations broke down again to reach final investment decision in 2022 and first production in 2025. That is now certainly to be considerably delayed. Another contentious issue appeared at the Pandora Gasfield. Twinza oil wanted to align the Pasca Gas field with neighbouring Pandora Gasfield. However government retrieved

12154-440: The time of redemption, equal at least the value of the loan which was designated at a share value of A$ 8.55. If the value of the shares was lower than the loan, the PNG government would have to pay out the missing cash. If the value of the shares was higher than the loan and IPIC wanted to buy the shares, the PNG government was entitled to the extra value in cash. The loan was expected to mature after five years, but IPIC could opt for

12272-469: Was a minor company in the gas and oil industry that acquired exploration licenses for oil and gas in PNG in 2005. The driving force in Interoil was its founder: Phil E. Mulacek , who announced in 2007 the discovery of a large gas field on the edge of the Gulf of Papua in the south of the country. "The InterOil Corporation, made the kind of announcement investors crave: explorations near the refinery had uncorked

12390-529: Was becoming less confrontational when Prime Minister Marape announced “a binding framework” agreement with Barrick Niugini gold mine in Porgera after a serious confrontation. This new deal includes 51% shareholding in the company. Charles Abel, entered the fray again. He was the deputy chairman on the government negotiating team on Papua/LNG and maintained that the deal struck by the O’Neill government with Papua LNG

12508-445: Was defended by Arthur Somare when the deal was concluded. He argued that the government did not want the loan to add to government indebtedness. It was fundamentally the sale of an asset – the Oil Search shares – in the first place. 2008 was also the year of the worldwide financial crisis which made it difficult to raise money. "The exchangeable bond effectively involved a future swap in shares held in Oil Search for immediate funding for

12626-518: Was fired as a result. However, there were more ministers who opposed the decision. The decision has probably passed in some form through the Central Bank and the Ministry of Finance, but prominent PNG economists argued from its inception that "the UBS loan was sought outside of sound fiscal management laws and legal governance". This was confirmed by an Ombudsman Commission report that recommended

12744-464: Was from Hela, resigned. More MPs followed him and resigned from the governing party (PNC). Four out of five resigning MPs originated from resource-rich areas Former Prime Minister Late Sir Mekere Morauta criticised three areas in the agreement: first, the agreement was created without the necessary and required consultation. Landowner groups have not been properly identified in the PNG LNG project after ten years of operation. The government claimed that

12862-473: Was made evident by Petroleum Minister Kerenge Kua when he stressed that the issues involved remained political at a meeting with a senior visitor from Total in France. The Pn’yang gas field is the third project for PNG Gas. It is situated in the lowlands to the northwest of the Hides gas field. It was originally thought to be a relatively small gas field, but a certification exercise revised this as composing of 4.37 trillion cubic feet of gas. For comparison, Hides

12980-590: Was one of the only Western oil companies to continue operating in Russia after the Russian Invasion of Ukraine . In June 2022, TotalEnergies signed a partnership with QatarEnergy for the worlds largest LNG expansion project, the North Field East (NFE). Holding the largest stake, 6.25%, TotalEnergies will hold the equivalent of one of the four trains. In September 2022, an additional agreement

13098-521: Was operating 2,600 retail stores under the Vickers, Apco , Road Runner, and Total brands. That year, the company began remodeling and rebranding all of its North American gasoline and convenience stores to use the Total name. Four years later, Total sold its North American refining and retail operations to Ultramar Diamond Shamrock for $ 400 million in stock and $ 414 million in assumed debt. In 1996,

13216-905: Was ready for political approval". The companies involved were unsympathetic to proposed changes. Total declared that no change in the agreement would be entertained. Oil Search warned that revisions may push back the FID to 2021 and projects elsewhere in the world may take precedence over Papua-LNG Three government-backed lenders – Japan Bank for International Cooperation (JBIC), the US Overseas Private Investment Corporationt (OPIC) and Export Australia Finance otherwise named Export Finance and Insurance Corporation (EFIC) – announced an initial commitment to lend to Papua-LNG. Kua negotiated with Total in Singapore in August 2019 to receive better terms, which resulted in

13334-410: Was repaid by the transfer of shares to Oil Search. The repayment was made at a loss: the government of PNG had bought these at A$ 8.20 and the price was A$ 6,70 at the time of redemption. When the deal concluded the PNG government expected the share price to double which would have resulted in a windfall for the PNG government. Kumul Petroleum Holdings, the state owned company that owned the shares estimated

13452-606: Was signed to include the North Field South (NFS) which is the second phase of the NFE. This gave TotalEnergies a stake of 9.375% of the 25% stakes available to international companies. On 30 March 2023, Total sold a shipment of LNG which it sourced from UAE to CNOOC on the Shanghai Petroleum and Natural Gas Exchange. It was reportedly the first trade to be settled in the renminbi (Chinese yuan) currency on

13570-576: Was suspended. The suspension lasted til May 2021. Collaboration was resumed after a delay of three years as the result of a meeting in Paris between the CEO of Total and Sam Basil, as deputy prime minister of PNG. They announced the remobilisation of the project teams and other required resources, At the meeting there was a reconfirmation of the Papua LNG Gas Agreement in 2019 which had been

13688-704: Was the first foreign investment in Iran since in the 2015 sanctions over Iran's nuclear weaponisation were lifted by the JCPOA . In 2017, Total announced the acquisition of Maersk Oil for $ 7.45 billion in a share and debt transaction. This deal positioned Total as the second operator in the North Sea. In 2017, Total signed an agreement with EREN Renewable energy to acquire an interest of 23% in EREN RE for an amount of €237.5 million. In November 2017, Total announced

13806-433: Was virtually tax free which made the management contract more profitable. Morauta argues that nothing was learnt from the LNG PNG project and mentions two specific instances: first, there was no proper taxation for windfall profits and there was no mention of taxing the oil that came out of the well mixed with gas (condensate). The oil was sold to Oilsearch, which could have been seen as compensation for Oilsearch losing out on

13924-517: Was wrongly portrayed It was much better than came across to the public. That deal also included 51% ownership of the project. However despite this mention Abel said: “The objective should be a more heavily weighted royalty system based on export value as it is much easier to monitor and is not subject to net profit as is dividends and tax. He reiterated in 2021: it is unwise for the PNG government to rely on equity participation but should instead mobilise an income stream through royalties and taxation. “As

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