France's TotalEnergies says no new investment in Adani till bribe charges cleared
New Delhi, Nov 25: French energy giant TotalEnergies SE on Monday said it will make no new financial contribution as part of its investments in Adani group companies till the Indian firm's founder is cleared of bribery charges.
The energy giant said it was not aware of the investigation into the alleged corruption.
TotalEnergies is one of the biggest foreign investors in billionaire Gautam Adani's business empire and had previously taken stakes in the group's renewable energy venture Adani Green Energy Ltd (AEGL) and city gas unit Adani Total Gas Ltd (ATGL).
In a statement, the French firm said it learnt of US authorities indicting Gautam Adani and two other executives for allegedly paying USD 265 million bribes to Indian officials to secure solar power supply contracts for AEGL.
"This indictment does not target AGEL itself, nor any AGEL-related companies," TotalEnergies said. "Until such time when the accusations against the Adani group individuals and their consequences have been clarified, TotalEnergies will not make any new financial contribution as part of its investments in the Adani group of companies."
Adani group has dismissed the allegations brought in the US court as baseless and has said it would seek all possible legal recourse.
TotalEnergies holds a 19.75 per cent stake in Adani Green Energy Ltd - the renewable energy arm of the Indian group helmed by Gautam Adani. It also has a 50 per cent stake in three joint venture companies that produce electricity from sunlight and wind with AEGL.
The French firm also holds a 37.4 per cent stake in Adani Total Gas Ltd, which retails CNG to automobiles and pipes natural gas to households for cooking.
"In accordance with its code of conduct, TotalEnergies rejects corruption in any form," the French giant said in the statement. "TotalEnergies, which is not targeted nor involved in the facts described by such indictment, will take all relevant actions to protect its interests as a minority (19.75 per cent) shareholder of AGEL and as a joint-venture partner (50 per cent) in project companies with AGEL."
The company said it made the investments in Adani's entities "in full compliance with applicable laws".
This was also in line with its own internal governance processes pursuant to due diligence and representations made by the sellers.
"In particular, TotalEnergies was not made aware of the existence of an investigation into the alleged corruption scheme," the statement added.
In January 2021, TotalEnergies acquired a minority interest in the listed company Adani Green Energy Limited (AEGL) of which it now owns 19.75 per cent. As part of its strategy to enhance its development in renewables in India through direct access to a portfolio of assets, it has also acquired a 50 per cent stake in three joint ventures operating renewable assets (AGEL23 in 2020, AREL9 in 2023, and AREL64 in 2024).
The French energy giant had in February last year put on hold a planned investment in Adani Group's USD 50 billion hydrogen project pending results of an audit launched following allegations by a US short-seller.
While the partnership, where the French oil giant was to take a 25 per cent stake in the hydrogen venture of the Adani group, was announced in June 2022, TotalEnergies had not yet signed a contract.
As per the June 2022 announcement, TotalEnergies was to take 25 per cent equity in Adani New Industries Ltd (ANIL) – the Adani Group firm that is investing USD 50 billion over 10 years in a green hydrogen ecosystem, including an initial production capacity of 1 million tonnes before 2030.
The announcement by Total adds to the woes of Adani. The crisis around the group, which began when Hindenburg released a damning report in January 2023, has also been used by the opposition parties to attack the government, alleging that the tycoon's rise was primarily because of his association with Prime Minister Narendra Modi. The government has rejected the allegation.
Hindenburg's allegations of accounting and financial fraud unleashed an over USD 150 billion rout in market value across Adani’s companies. Adani group has vehemently denied the allegations, calling them malicious and an "attack on India".
The group stocks had recovered most of the losses before last week's indictment in a New York Court.
TotalEnergies, France's largest oil and gas company, first joined hands with Adani in 2018 for a liquefied natural gas (LNG) venture before buying a 19.75 per cent stake in AGEL and a stake in solar assets for USD 2.5 billion in 2020-21. It also took a 37.4 per cent stake in ATGL.
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Iran attacks oil tanker near Dubai; Trump warns of strikes on energy sites if Hormuz remains shut
Tel Aviv/Washington: Iran attacked and set ablaze a fully loaded crude oil tanker off Dubai on Monday after US President Donald Trump warned that Washington would target Iran’s energy infrastructure if the Strait of Hormuz is not reopened.
According to a Reuters report, the Kuwait-flagged tanker Al-Salmi is owned by Kuwait Petroleum Corporation and was capable of carrying around 2 million barrels of crude. . It was struck in what authorities later described as a drone attack. The company said the incident occurred early Tuesday, causing a fire and hull damage. No injuries were reported and the fire was brought under control, Dubai authorities said .
Oil prices rose briefly following the attack and added to volatility in global energy markets. In the United States, retail gasoline prices crossed $4 per gallon for the first time in more than three years, according to data from GasBuddy, as crude prices moved above $101 per barrel.
Israel said it carried out missile strikes on military infrastructure in Tehran and on sites linked to Iran-backed Hezbollah in Beirut. Explosions were reported in parts of Tehran, with Iran’s Tasnim news agency saying power outages occurred in the eastern Pirouzi district following the blasts.
The Israel Defense Forces said four soldiers were killed in southern Lebanon. In recent days, three peacekeepers serving with the United Nations Interim Force in Lebanon were also killed in separate incidents in the same area.
Iran’s military spokesperson said Tehran’s latest wave of missile and drone strikes targeted US military positions at five bases in the region and sites in Israel. Thousands of troops from the US Army’s 82nd Airborne Division have begun arriving in the Middle East, according to US officials, expanding Washington’s military options even as diplomatic efforts continue.
White House Press Secretary Karoline Leavitt told Reuters Trump wants an agreement with Iranian leaders before a revised April 6 deadline for reopening the Strait of Hormuz, adding that talks were progressing, while public statements from Tehran differed from private communications.
Iran’s Foreign Ministry spokesperson Esmaeil Baghaei said proposals received through intermediaries were “unrealistic” and maintained that Iran was focused on defending itself.
In a social media post, Trump said that if a deal is not reached soon and the strait is not reopened, the US would strike Iran’s electric generating plants, oil wells and Kharg Island. However, a report in The Wall Street Journal said Trump had told aides he may be willing to end the military campaign even if the strait remains largely closed and address reopening it later. The White House referred to earlier remarks by Secretary of State Marco Rubio that the strait would be opened “one way or another.”
The administration has also requested an additional $200 billion in funding for the conflict, a proposal that faces opposition in the US Congress.
