Total Confirms Production Growth Targets; Plans To Start Up Upstream Projects

(RTTNews) - French oil and gas giant Total SA (TTA.L, TTFNF.PK, TOT) announced Monday its outlook and objectives for the coming years, including its plans to start up numerous projects in the Upstream segment. Total Chairman and CEO Christophe de Margerie also presented the company's social and environmental strategy to the financial community. The company also confirmed its production growth targets of 2.6 Mboe/d in 2015 and potential for 3 Mboe/d in 2017.

In its statement, the company noted that it now realizes the benefits of its earlier launched program of intensive Upstream investments through the start up of major projects from now to 2017. This includes Kashagan in Kazakhstan, which began producing September 11. The company anticipates that the investments would trend down starting in 2014 as it enters a growth phase for production and free cash flow.

In its Upstream segment, the company said it plans to start up numerous projects in the coming months, including Ekofisk South, CLOV, Laggan-Tormore, Ofon 2, etc.

Total added that its exploration program continues with more than 15 high-potential wells planned from now to the end of 2014, notably in the Gulf of Mexico, Iraq, Brazil and Angola.

In Refining & Chemicals segment, the ongoing restructuring has resulted in profitability increasing toward the target of 13% return on average capital employed set for 2015.

In Marketing & Services segment, Total expects the recently approved investment program will allow it to adapt its positions in Europe and expand in growing markets, particularly in Africa and the Middle East. During this investment phase, the company expects the profitability of Marketing & Services to remain at high levels.

Regarding its free cash flow, the company said the expected strong increase in cash flow from Upstream start-ups and Downstream restructuring as well as a decrease in investments to more moderate levels would result in notable growth in free cash flow.

In keeping with the targets for sustainable growth and the strong visibility on the future, Margerie confirmed his commitment in favor of a policy of competitive returns to shareholders, the company noted.

In Paris, Total shares are currently trading at 42.88 euros, up 0.51 euros or 1.20 percent.