Total To Maintain Strong Discipline On Capex; Opex Reduction Target Lift By 50%

(RTTNews) - Total (TTA.L, TTFNF.PK, TOT) announced the company is executing its plan to reduce capital expenditures to $23-$24 billion in 2015, from the peak of $28 billion in 2013. The Group will further reduce investment down to $20-$21 billion in 2016, before returning to a sustainable level of $17-$19 billion, from 2017 onwards.

The Group said it is further increasing its Opex reduction target by 50% from $2 billion to $3 billion by 2017. Production is planned to grow by an average of 6-7% per year between 2014 and 2017 and by an average of 5% per year between 2014 and 2019. Total achieved a production increase of 11% year on year during the first half of 2015.

The Group said it is committed to oil and gas integrated business model and plans to allocate its capital employed 75% to Upstream and 25% to Downstream. The Group confirmed that its organic free cash flow will cover the dividend by 2017 at $60/billion.