TotalEnergies, which is maintaining assets in Russian gas projects even after Russia's invasion of Ukraine, is now looking into sourcing its gas from the United States and projects in the North Sea, its chief executive said on Thursday.
"There is no future for growth in Russia but there is a new European market for liquefied natural gas (LNG)," said CEO Patrick Pouyanne, pointing to options in the United States as well as projects the group is revisiting in the North Sea.
TotalEnergies has said it would not renew some Russian supply contracts, but has come under fire for not following industry rivals in shedding Russian assets.
It holds a 19.4% stake in Russia's largest LNG producer Novatek, a 20% stake in the Yamal LNG project, and a 10% interest in Arctic LNG 2, scheduled to start production next year.
Pouyanne told an event for investors that the company's seats on the board of Novatek could become "dormant" and it was already not participating in decisions linked to paying out revenues to its shareholders.
TotalEnergies is Novatek's second biggest shareholder after billionaire Leonid Mikhelson, whom Pouyanne said the group remains in contact with.
"He's doing an excellent job," said Pouyanne. "These guys are not responsible for what has been decided by the Russian leadership."
TotalEnergies estimates that Russian oil and gas made up a fifth of its reserves at the end of last year, and that the country accounted for $13.7 billion of invested capital.
It said capital not spent in Russia would now be re-invested elsewhere, and broadened its net investment target to $13 to $16 billion over four years, from a previous ceiling of $15 billion.
A day earlier, French carmaker Renault said it would suspend operations at its Moscow plant, hours after Ukraine's President Volodymyr Zelenskiy called on French firms to "stop sponsoring the Russian war machine."
As Russia's invasion of Ukraine enters its second month, thousands of people have been killed, millions have become refugees and cities have been pulverized.
(Reporting by Benjamin Mallet and Sarah Morland; Editing by David Gregorio)
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