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Total budgets over $22b on upstream operations in 2013

By on February 14, 2013

The oil giant, Total, Wednesday, unfolded plan to spend more than 80 per cent out of $28 billion of its organic investment budget on upstream activities in 2013.

The French major said its 2012 fourth quarter full year result released yesterday, that it expects to achieve production growth targets of three per cent per year, on average, through to 2015.

It also hoped to potentially achieve three million barrels of oil equivalent per day by 2017.

In 2012, the company produced an average of 2.3 million boepd compared with 2.35 million bpd in 2011.

Total said its production growth should be fueled by 2012 start ups as well as anticipated 2013 start ups, including Anguille in Gabon, Angola LNG, Kashagan in Kazakhstan and the extension of OML 58 in Nigeria.

Meanwhile, the firm said that it is continuing to work in cooperation with the UK authorities towards “a safe and progressive” restart of the Elgin-Franklin field during the first quarter of 2013.

Total confirmed that it suffered a three percent decline in its total production due to the Elgin gas leak incident in the North Sea as well as flooding affecting its Nigeria operations.

Commenting on the results, Chairman and Chief Executive Officer, Christophe de Margerie said: “In 2012, Total again delivered solid performance with net income of 12.4 billion euros and reinforced its strong financial position. The environment remained favorable in the upstream.

“With safety as the priority, the Group continues to progress towards its three main objectives. To successfully start-up projects, on time and in budget, for the Group’s profitable growth over the coming years. To rely on a recently expanded exploration portfolio for more significant discoveries. And, finally, to continue the restructuring of downstream activities for improved profitability and resilience in an evolving market.

“The Group has embarked on an important program of investments and asset sales to deliver value-creating growth, all while preserving a strong balance sheet, providing shareholder returns, and keeping its environmental and social commitments. It is thus with discipline, determination and optimism that the Group prepares for its future.”