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Total's CEO Sees Opportunities In Low Oil Price Environment

The current low oil price environment is an opportunity for oil and gas major Total to realign its costs, drive efficiency in upstream operations and rediscuss tax issues with host producing nations, its chief executive told investors.

Patrick Pouyanne spoke with investors in Geneva on Friday, Raymond James Europe Research said in its note.

"As regards mergers and acquisition (M&A) opportunities, the group is keen on capitalising on its strength (Africa, Middle East, North Sea, Deepwater, LNG) rather than looking for U.S. shale oil opportunities," the note said.

"Total sees more opportunities in Iran on the LNG side than in conventional oil developments," the note said, adding that oil sands are not well placed on the merit curve and Total could sell further positions.

The group has said it is cutting its exposure to Canadian oil sands projects in the context of lower global oil prices after it sold 10 percent of its stake Alberta oil sands project to Canada's Suncor Energy.

Total was not immediately available to comment.

Total put the protection of its dividend at the centre of its strategy last month, as it set out reduced investment plans and increased cost cuts in preparation for an extended period of depressed oil prices.

The Economic Times
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