TotalEnergies SE ( TTE ) shares are trading higher premarket on Tuesday. On Monday, the company disclosed the commencement of oil production from Mero-4, the fourth development phase of the Mero field in Brazil’s Santos Basin, 180 km off the coast of Rio de Janeiro.

The Mero field is a unitized project operated by Petrobras (38.6%) in partnership with TotalEnergies (19.3%), Shell’s  Shell Brasil (19.3%), CNPC (9.65%), CNOOC (9.65%), and Pré-Sal Petróleo S.A. (PPSA) (3.5%), which represents the Brazilian government in the non-contracted area.

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Launched in August 2021, Mero-4 connects 12 wells to the new Alexandre de Gusmão FPSO, which has a production capacity of 180,000 barrels per day. The project incorporates low-emission design features, including gas reinjection and zero routine flaring.

With this launch, Mero’s total capacity reaches 770,000 b/d across five FPSOs, contributing approximately 100,000 boe/d to TotalEnergies at full capacity.

Nicolas Terraz, president of Exploration & Production of TotalEnergies, said, “The start-up of Mero-4 marks the end of the development of this world-class field, with the commissioning of four FPSOs in three years, and the start of a long-term production phase generating robust free cash flow.”

“With its vast resources and high productivity, the Mero field delivers low-cost and low-emission oil production in line with our company strategy and contributes significantly to the achievement of our objective to grow our production by 3% per year between 2024 and 2030.”

Shell’s Upstream President Peter Costello added, “Mero-4 is the latest example of how we are working with our partners to unlock value from world-class reservoirs, sustaining material liquids production and providing for the world’s current energy needs.”

“Our Brazil portfolio features long-life assets with high flow rates, resulting in some of our most competitive barrels on both operating cost and carbon footprint,” Costello added.

Investors can gain exposure to the stock via First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF and The 2023 ETF Series Trust II GMO International Value ETF

Price Action: TTE shares are trading higher by 1.59% to $58.81 premarket at last check Tuesday.

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