As the first international energy company to enter China’s offshore exploration, Total is actively presented in the entire value chain of China’s energy industry, establish win-win partnerships by sharing technologies and know-how, as well as developing business opportunities with Chinese partners both in China and globally. As a responsible energy major, we also contribute to renewable energies such as solar power and biomass.
Integrated Operator and Credible Partner of Chinese NOCs
Since the 1980s, Total has explored for oil and gas in many Chinese offshore and onshore basins: Beibu Gulf, Bohai Bay, Yellow Sea, and Tarim Basin.
In 2006, Total signed a Production Sharing Contract (PSC) with CNPC for the evaluation, development, and production of natural gas resources in the South Sulige gas field. CNPC (51%) will operate the project with Total (49%) providing project management and technical support and expertise. The total production forecast of the project is approximately 440 million barrels of oil equivalent by 2036 (over the term of the contract). China’s National Development and Reform Commission (NDRC) officially approved the development plan for the field in April 2014.
We continue to search for new conventional projects in China, especially in deep offshore exploration where we have significant technical advantages. We are actively exploring new possibilities with CNOOC in China to take advantage of our joint deep-offshore successes in Nigeria.
Through an integrated International Procurement Office in Shanghai, Total is sourcing high-quality products in China for its projects worldwide. Total selects the highest quality local suppliers through a rigorous process that ensures each qualified supplier complies with strict health and safety standards and labor laws.
Exploring Renewable Energy and Developing Energy Storage
As the world’s fourth-largest listed producer of natural gas and the second-largest liquefied natural gas operator, Total provides LNG to China under long-term contracts and spot sales. Total has supplied over 10 million tons of LNG to China since 2010.
Total and CNOOC signed a Sales and Purchasing Agreement (SPA) for up to 1 million tons in annual sales of LNG for a 15-year period, beginning in 2010. In 2016, we have signed a pioneer contract to supply 0.5 million tons of LNG per year from 2018 to the private gas distributor ENN. In 2018, Total and CNOOC signed an amendment to their existing SPA for LNG supply, the two parties have increased the contract volume from 1 million tons per annum (MTPA) to 1.5 MTPA of LNG and have extended the term of the contract to 20 years. In 2019, Total and Guanghui signed a long-term SPA for the supply of 0.7 million tons per year of LNG for a period of 10 years.
Consistent with the Group’s determination to provide real-world industrial solutions to address climate changes, Total is actively following the policies and pursuing business opportunities related to the development of solar across the electricity value chain in China. Our SunPower affiliate is a world-leading solar company specialized in high-efficiency PV technologies. In November 2013, the joint venture – China Concentrated Photovoltaic (Inner Mongolia) Co., Ltd. was officially established in Hohhot by SunPower together with three Chinese partners and has been steadily expanding its footprint in Inner Mongolia, Sichuan, and Hebei.
Total also prioritize the 2nd and 3rd generation biomass as a sector of particular interest. In July 2013, Total signed a promising research agreement with Qingdao Institute of Bioenergy and Bioprocess Technology (QIBEBT) of the Chinese Academy of Sciences, aiming to develop biofuels and feedstock for green chemicals.
The Group’s recent acquisition of Saft, a global leader in high-tech batteries for industrial applications, will further accelerate our growth in renewables. Saft has recently doubled the capacity of its Zhuhai battery plant in Guangdong.
OUR BUSINESS PARTNERS
Deep Offshore Development
China National Offshore Oil Corporation, the largest offshore oil and gas producer in China, is a state-owned maga company operating directly under the control of the State-owned Assets Supervision and Administration Commission of the State Council of the People’s Republic of China.
Headquartered in Beijing, CNOOC was founded in 1982. After more than 30 years of reform and development, it has become an international energy company with prominent core business, a complete industrial chain and business spreading across 40 countries and regions. The five main business segments of the Company are oil & gas exploration and development, engineering and technical services, refining and marketing, natural gas and power generation and financial services.
On November 1, 2017, CNOOC changed its Chinese registration name while transforming from an enterprise owned by the whole people into Company Limited (wholly state-owned).
In 2017, the Company was ranked 31th in Petroleum Intelligence Weekly (PIW)’s World’s Top 50 Oil Companies. In 2018, the Company was ranked 87th in Fortune Global 500. By the end of 2017, Moody’s and Standard & Poor’s rated the Company with credit ratings of A1 and A+.
Total E&P Chine (TEPC)
Total E&P Chine is a wholly owned affiliate working with CNPC to develop the South Sulige tight gas field in the Ordos Basin. CNPC (51%) will operate the field, with TEPC (49%) providing project management services and technical support and expertise.
We are also cooperating with CNPC on the Halfaya oil field in Iraq and the Bokhtar PSC in Tajikistan.
Expanding Our Partnership
We are expanding our work to develop unconventional energy resources in China. Together with Sinopec, we are exploring and appraising the shale gas potential of the Xuancheng license. We are also conducting preliminary reviews of other shale gas projects, and looking at branching out into unconventional oil development in the future.
We are partners in the Northern Lights oil sands project in Canada and a natural gas project in Yemen.