The transaction with EDP is based on an enterprise value of €515 million. It remains subject to conditions precedent, including regulatory approval and is expected to be finalized before the end of 2020. The portfolio of around 2.5 million residential contracts is composed of around 2.1 million held by EDPCommercializadora(100% EDP) and around 0.4 million by CIDE HCEnergía, S.A., a joint venture between EDP and CIDE Servicios Comerciales de Energía, S.L. (“CIDE”), the latter transaction being subject to CIDE agreement. Upon closing, EDP would transfer to TOTAL the 280 employees managing the activities acquired.
TOTAL discontinues the acquisition of Occidental Petroleum’s assets in Ghana
In August 2019, TOTAL and Occidental Petroleum (“Occidental”) entered into a Purchase and Sale Agreement (“PSA”) in order for TOTAL to acquire Anadarko’s assets in Africa. Under this agreement, TOTAL and Occidental have since completed the sale and purchase of the Mozambique and South Africa assets.
The PSA provided that the sale of the Ghana assets was conditional upon the completion of the Algeria assets’ sale. Occidental has informed TOTAL that, as part of an understanding with the Algerian authorities on the transfer of Anadarko’s interests to Occidental, Occidental would not be in a position to sell its interests in Algeria.
Given the extraordinary market environment and the lack of visibility that the Group faces, and in light of the non-operated nature of the interests of Anadarko in Ghana, TOTAL has decided not to pursue the completion of the purchase of the Ghana assets and, as a consequence, to preserve the Group’s financial flexibility.
TOTAL is exploring quantum algorithms to improve CO2 capture
On May 15, 2020, TOTAL announced it is reinforcing its research into Carbon Capture, Utilization and Storage (“CCUS”) technologies by signing a multi-year partnership with UK start-up Cambridge Quantum Computing (“CQC”). This partnership aims to develop new quantum algorithms to improve materials for CO2 capture. TOTAL’s ambition is to be a major player in CCUS and the Group currently invests up to 10% of its annual research and development effort in this area.
To improve the capture of CO2, TOTAL is working on nanoporous materials called adsorbents, considered to be among the most promising solutions. These materials could eventually be used to trap the CO2 emitted by the Group’s industrial operations or those of other players (cement, steel etc.). The CO2 recovered would then be concentrated and reused or stored permanently. These materials could also be used to capture CO2 directly from the air.
The quantum algorithms which will be developed in the collaboration between TOTAL and CQC will simulate all the physical and chemical mechanisms in these adsorbents as a function of their size, shape and chemical composition, and therefore make it possible to select the most efficient materials to develop. Currently, such simulations are impossible to perform with a conventional supercomputer, which justifies the use of quantum calculations.
Historic investment decision for transport and storage of CO2
On May 15, 2020, TOTAL announced that Equinor, Shell and TOTAL decided to invest in the Northern Lights project in Norway’s first exploitation licence for CO2 storage on the Norwegian Continental Shelf. Plans for development and operation have been handed over to the Ministry of Petroleum and Energy.
The investment decision is subject to final investment decision by Norwegian authorities and approval from the EFTA Surveillance Authority.
The investment decision concludes the study phase during which Equinor, Shell and TOTAL worked closely with Norwegian authorities to conduct engineering studies and project planning, drilled a confirmation well and developed the necessary agreements. Following the investment decision, the partners intend to establish a joint venture company.
The initial investments will total almost NOK 6.9 billion.
The project will be developed in phases. Phase 1 will develop the capacity to transport, inject and store up to 1.5 million tons of CO2 per year. Once the CO2 is captured onshore by industrial CO2-emitters, Northern lights will be responsible for transport by ships, injection and permanent storage some 2,500 metres below the seabed.