

Per the Dept. of the Interior:
- TotalEnergies commits to invest approximately $1 billion—the value of its renounced offshore wind leases—in oil and natural gas and LNG production in the United States.
- Following their new investment, the United States will reimburse the company dollar-for-dollar, up to the amount they paid in lease purchases for offshore wind.
- Specifically, TotalEnergies will invest $928MM, in the following projects in 2026:
- The development of Train 1 to 4 of Rio Grande LNG plant in Texas;
- The development of upstream conventional oil in Gulf of America and of shale gas production.
- Following theseTotal investments, the U.S. will terminate the following leases and reimburse the company:
- Lease No. OCS-A 0535 (now 0545). The lease is located in Carolina Long Bay area. This lease was fully executed by TotalEnergies Renewables USA, LLC on June 1, 2022, after payment of $133,333,333.
- Lease No. OCS-A 0538. The lease is located in the New York Bight area. The lease was fully executed by Attentive Energy, LLC on May 1, 2022, after payment of $795,000,000.
- Total pledges not to develop any new offshore wind projects in the United States.
Comments:
- This is a good deal for Total.
- They grossly overpaid for these leases during an offshore wind bidding frenzy.
- In particular, the bid of $795 million for the New York Bight lease seemed irrational even at the time of the sale (more so now).
- Construction had not begun on either wind project.
- The LNG project looks like a good investment, and there are good opportunities to buy into deepwater and onshore shale projects.











Total wants to sit on their wind lease until the next administration (2029). Can they do that?
Posted in energy policy, Offshore Wind, tagged Attentive Energy, BOEM, CEO comments, COP deadline, diligent development, lease cancellation, OCSLA, Total, wind lease on December 3, 2024| Leave a Comment »
Impressive arrogance from the CEO of a foreign company that paid $795 million for a lease (OCS-A 0538) that was worth pennies on the dollar even before the Presidential election:
“Offshore wind, I have decided to put the project on pause” with Trump’s return, Total Chief Executive Officer Patrick Pouyanne said at an energy industry conference in London on Tuesday.
“I said to my team, the project in New York, we’ll see that in four years,” he said. “But the advantage is it’s only for four years.”
Perhaps Mr. Pouyanne thinks Total owns those 84,332 acres in the Atlantic or that they have the right to hold the leased area indefinitely. They do not. The OCS Lands Act calls for diligent development of leases and BOEM has promulgated implementing regulations.
The Total (Attentive Energy) lease was issued on 5/1/2022. Per 30 CFR § 585.235(a)(1), the company must submit a Construction and Operations Plant (COP) no later than 5/1/2027, more than 20 months before the end of the Trump administration. BOEM will have ample time to act on the plan prior to the next administration.
BOEM could also call for progress updates and an earlier COP submittal if there is evidence that the lessee is not moving forward with development plans (as would already seem to be the case given Mr. Pouyanne’s public statements in London).
In the absence of progress in developing the lease, BOEM could seek cancellation (§ 556.1102) for failure to comply with the diligence mandate in OCSLA (556.1102 (a)). Cancellation could also be pursued based on misrepresentations in acquiring the lease (556.1102 (c)) or the threat of unacceptable harm to the environment or national security (556.1102 (d)).
Rather than making rash comments at a public forum in London, perhaps Mr. Pouyanne would have been wise to first meet with energy officials of the new administration early next year. At a minimum, the CEO’s comments will help justify any attempts to cancel the Total (Attentive Energy) lease on diligence grounds.
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