Why Oil Giant Total Has Opted For A Change Of Name

French oil giant Total has said it would change its name from Total to TotalEnergies to emphasise its strategy to become a net-zero emissions company.

Mr. Patrick Pouyanne, the chief executive officer of the firm, revealed this in a short video posted on the company’s website on Tuesday.

He said Total will propose to its shareholders at its annual general meeting on May 28 changing its name to TotalEnergies.

“The board of directors wanted to root this transformation in our identity. If the resolution is passed that day, Total will become TotalEnergies. “TotalEnergies” in one word,” Pouyanne said.

He added this is a major transformation to become the responsible energy company that puts sustainability and sustainable development at the heart of its strategy.

Pouyanne said that Total has always supported the goal of 2015 Paris Climate accords because of its activities.

Total is a multinational energy company operating in more than 130 countries.

For over 50 years, the company has remained the leader in the downstream sector of the Nigerian oil and gas industry.

In 2003, the company TotalFinaElf changed its name to Total.

The firm has been considered the fastest off the mark of the European oil majors covering the most ground since announcing its low carbon goals.

In a statement, released on the company’s webpage on Tuesday, the company plummeted to a $7.2 billion net loss for the whole of 2020, down from its profit of $11.2 billion the previous year, as it dealt with the two major crises of COVID-19 pandemic and oil price crash.

Total took an impairment of $10 billion notably on Canadian oil sands assets as a result and on an adjusted basis the company’s net profits stood at $4.06 billion, down 66 per cent on $11.8 billion in 2019.

According to the statement, Total made $1.5 billion in assets sales in 2020 including the divestment of some non-core assets in the United Kingdom (UK) North Sea.

The company noted that for 2021, oil prices have been above $50 since the year started.

However, the environment remains uncertain and dependent on the recovery of global demand still affected by the COVID-19 pandemic.

Faced with COVID uncertainties, the company projected its net investments for the year at $12 billion.

“The choice of TotalEnergies naturally includes a nod to our past that we are proud of, and to what we are now without which we would not be able to prepare the future,” Pouyanne said.

He described the new name as a new commitment and a banner under which the company will achieve future successes.