Totalenergies Se · EURONEXT:TTE
Totalenergies — FY2019 Earnings Presentation
22 slides from Totalenergies's earnings presentation, February 2020
Slide 1: North Sea
[North Sea
Slide 2: Playing to our strengths in the North Sea
Playing to our strengths in the North Sea Arnaud Breuillac President Exploration & Production
Slide 3: North Sea: 60 years of history and innovation
North Sea: 60 years of history and innovation Combining the strengths of leading North Sea operators Countries entry 1962: UK / Denmark (DK) 1964: Netherlands (NL) 2018 – DK 1965: Norway (NW) Creation of technical hub in Copenhagen 1977 – NW 1988 – NL 1994 – UK 2009 – NL 2018 – DK First gas World’s
Slide 4: A leader in the North Sea for the long run
A leader in the North Sea for the long run 2nd largest operator, 3rd largest resource holder Snøhvit, 18.4% Core Upstream area leveraging > 3.5 B$ ~500 kboe/d ~2,600 skilled staff to manage CFFO production large base of operated assets in 2019 in 2019 Norway Developing portfolio with large Oseberg,
Slide 5: Maersk Oil, unique opportunity to acquire young assets while divesting high cost ones
Maersk Oil, unique opportunity to acquire young assets while divesting high cost ones 2015-19 M&A resources 2015-19 asset sales Bboe 1.0 ~5 B$* >40 $/boe Main assets: sold Technical • Maersk Oil (Culzean, costs Johan Sverdrup, Tyra…) 0.5 Main assets: • UK mature assets • Martin Linge • Gina Krog Acq
Slide 6: Maximizing value from Maersk Oil
Maximizing value from Maersk Oil Strong cash flow from Maersk Oil portfolio B$ – 60 $/b Successfull integration of skilled and experienced staff 10 UK OBO New technical hub supporting sales* North Sea and global offshore assets from Copenhagen CFFO 2020-22 @ 60 $/b 5 Benefiting from growing portfoli
Slide 7: Rejuvenated portfolio offering stable medium-term production
Rejuvenated portfolio offering stable medium-term production Producing ~60% gas North Sea production kboe/d Large share of assets on plateau and growing 500 2019 low cost major start-ups Assets on plateau and • Johan Sverdrup (8.4%) growing 440 kb/d, Opex < 2.5 $/boe, Ph. 2 under construction 250 •
Slide 8: How do we tackle the North Sea cost challenge?
How do we tackle the North Sea cost challenge? North Sea Opex* Cost synergies exceeding targets $/boe M$ – 2020 savings 350 M$ -50% 300 -15% 300 10 Maersk Oil Acquisition > 200 150 2014 2015 2016 2017 2018 2019 2023 Original Target Target 2020 re vised re vised target in 2018 in 2020 Synergies & new
Slide 9: Strong culture of innovation based on regional expertise
Strong culture of innovation based on regional expertise Combining Total & Maersk Oil operational strengths Adopting new operating Optimizing resources Pioneer in digital models to cut costs Tight chalks Smart rooms Transferring offshore activities to onshore EOR/waterflooding Digital asset flagship
Slide 10: Successful nearby exploration
Successful nearby exploration Deep knowledge of core area Tyrihans North Ile Onyx-2 Significant discoveries with near Onyx-1 2017-19 exploration benchmark term production: Mboe/well discovered • Glengorm (25%): ~250 Mboe Topas resources, FID 2021 40 Norway Edradour Alwyn • Glendronach (60%, op.): Ea
Slide 11: Reducing North Sea asset emissions
Reducing North Sea asset emissions Snøhvit Developing asset electrification • Benefiting from Johan Troll Norway Sverdrup, Troll and Snohvit LNG experience Oseberg • Studying implementation on Central Graben, Tyra and Oseberg Johan Sverdrup Central Curbing GHG emissions Graben Tyra United • CO2 emis
Slide 12: North Sea: the place to develop CCUS
North Sea: the place to develop CCUS Norway Progressing multiple projects Northern • Northern Lights (Norway) ~15 Mt/y* Lights most advanced project – CO2 storage FEED ongoing projects Acorn • Several projects under study notably in UK and Benelux United Leveraging North Sea depleted Kingdom Net Zer
Slide 13: North Sea delivering profitable cash flow
North Sea delivering profitable cash flow Organic free cash flow B$* > 1.8 B$ 1.5 64 60 $/b $/b 2019 2020-23 2020-23 ROACE > 15% * Brent: 60 $/b North Sea | 11
Slide 14: Successful integration of Total and Maersk Oil
Successful integration of Total and Maersk Oil Building the largest UK operator Jean-Luc Guiziou Managing Director Total E&P UK
Slide 15: Total E&P UK: strong portfolio of young and mature operated assets
Total E&P UK: strong portfolio of young Supplying and mature operated assets 18% UK 2020 No . Glendronach .S gas demand rw K .C ay U. es U. K ro West of a Production .C F Shetland . S. Shetland Gas Plant kboe/d 60% Op. (SU: 02/2016) Alwyn North 200 100% Op. (SU: 11/1987) Northern West of North Sea S
Slide 16: Successful integration of Total and Maersk Oil in the UK
Successful integration of Total and Maersk Oil in the UK 2017 2018 2019 2020 August March Deal signed Deal closed September Integration team set-up April Top 55 team defined January Top 11 team defined October July Onshore Integration Culzean and Elgin – Onshore organization go-live Franklin Asset I
Slide 17: Best of both on people and culture
Best of both on people and culture 2017-20 synergies Headcount Combining 2 large operating companies 1,200 • 50/50 Total - Maersk Oil on management positions -30% • Overall, stable repartition Total - Maersk Oil heritage • Enhanced career opportunities Offshore Rejuvenated and more diversified manag
Slide 18: Harmonized operating model across all sites
Harmonized operating model across all sites Maintenance and operating savings M$ – 100% Site rotation regime > 275 M$ • 3 weeks on site 300 Other • Enhanced safety and Rates efficiency Supply chain • 25% less commuting flights 200 Scope reduction Maintenance optimization • 10 contracts reduced to 1
Slide 19: Leveraging synergies to reduce costs
Leveraging synergies to reduce costs Opex 2020 UK synergies B$, Group share % Other 1.0 Contract & Procurement Maersk Oil Synergies & cost reduction Perimeter Field & others operations 0.5 Total Structure costs 2017 2020 Total E&P UK 2/3 of synergies achieved end-2019 UK synergies ~30% of overall Ma
Slide 20: Driving down Total E&P UK CO2eq emissions
Driving down Total E&P UK CO2eq emissions Concrete actions to deliver emission reductions CO2eq emissions ktCO2eq – operated production CO2 performance visibility, dashboards on all sites 2,000 -20% Short-term reductions • Offshore power generation management 1,500 • Compressors and pumps optimizati
Slide 21: Elgin-Franklin and Culzean: flagship assets
Elgin-Franklin and Culzean: flagship assets Rig optimization • Rig reduction from 3 to 2 from 2020 • 12 M$ savings over 9 months • Leaner onshore support A digital asset • Latest generation integrated Smart Room • Culzean digital facility live • Elgin-Franklin digital facility in development Leading
Slide 22: Disclaimer
Disclaimer This document may contain forward-looking information on the Group (including objectives and trends), as (ii) Inventory valuation effect well as forward-looking statements within the meaning of the Private Securities Litigation Reform Act of The adjusted results of the Refining & Chemical