TotalEnergies SE (TTE)

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$TOT France drafts law to end oil and gas production by 2040

France's government drafts legislation to phase out all oil and gas exploration and production on its mainland and overseas territories by 2040, becoming the first country to do so.

Under a draft presented to the cabinet, France will no longer issue exploration permits and the extension of current concessions will be gradually limited until they are phased out by 2040, when the country plans to end the sale of gasoline and diesel vehicles.

The law could affect companies such as Total (TOT +1.2%), which although it has discontinued oil exploration in mainland France, has permits to explore in overseas territories such as offshore Guyane Maritime in French Guyana.

The scant amount of hydrocarbon production in mainland France takes place mostly in the Paris Basin and Aquitaine Basin, where Vermilion Energy (VET +0.8%) operates several permits.