Via reader Gavin Longmuir, this:
Total SA has joined Royal Dutch Shell PLC in withdrawing from American Fuel and Petrochemical Manufacturers because of disagreement about polices on climate change.
In a report on integrating climate with strategy, the company said it reviewed 30 industry associations to which it belongs “to verify that their stances on climate issues are aligned with the group’s.”
Total Chairman and Chief Executive Officer Patrick Pouyanne also cited the Paris agreement, stating, “Our policy regarding industry associations demonstrates our consistency and credibility. Transparency will strengthen the action of businesses, which are key participants in discussions on how to achieve the objectives of the Paris Agreement.”
Now it might be the case that Patrick Pouyanne believes capitulating to climate activists is the best way to safeguard the interests of Total’s shareholders. It might also be that he’s chiefly concerned about how he is perceived by France’s political elite, having realised his nest is well-feathered regardless of what happens to Total in the long term. I don’t know. But I found this interesting:
Total has suspended all activities on a planned $3.5bn crude export pipeline from Uganda to Tanzania due to uncertainty over its Uganda operation.
The 1,445km pipeline was planned to pass through neighbouring Tanzania to the Indian Ocean port of Tanga.
The decision follows last week’s termination of the farm-down transaction between Tullow Oil, Total E&P and CNOOC.
All parties have been actively progressing the sale and purchase agreement (SPA) since 2017. However, the companies did not reach an agreement on the fiscal treatment of the transaction despite negotiations with the authorities.
Total’s Ugandan development has been going nowhere pretty much from the beginning, and word on the street that the Frenchmen they sent to negotiate with the government – including the CEO – might as well have been random farmers plucked from the fields of Normandy. So if I may make a helpful suggestion to Total’s senior management, perhaps it’s better to reacquire the necessary skills and expertise to develop oil and gas reserves rather than waste company resources in meeting the objectives of the laughably self-serving, corrupt, and ultimately pointless Paris Climate Agreement?