Total to divest $10 billion in assets during 2015-17

Total SA plans to divest $10 billion in assets during 2015-17 in an effort to improve cash flow and enforce stricter financial discipline.

The announcement follows the realization of the company’s goal to divest $15-20 billion in assets during 2012-14, including the recent sale of 10% interest in Azerbaijan’s Shah Deniz field and the South Caucasus pipeline to Turkish Petroleum Corp. for $1.5 billion (OGJ Online, May 30, 2014).

Last week, Total received an offer from French specialty chemical company Arkema to acquire global adhesives affiliate Bostik for $2.25 billion.

Organic investment within the company is expected to decrease to $26 billion this year from $28 billion in 2013. By 2017, it hopes to reduce investment to $25 billion.

Total is targeting $15 billion in free cash flow for 2017, which it believes will be aided by the launch of 15 major projects expected to boost production to 2.8 million boe/d that year.

The company also reported the appointment of Kevin McLachlan to the position of senior vice-president, exploration, to take effect in early 2015. He’s currently working with Total’s exploration teams to define a new exploration strategy for next year and beyond.

Total, which late last year named Arnaud Breuillac as its E&P president, is seeking better overall exploration success (OGJ Online, Nov. 4, 2013).

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

Logistics Risk Management in the Transformer Industry

Transformers often are shipped thousands of miles, involving multiple handoffs,and more than a do...

Secrets of Barco UniSee Mount Revealed

Last year Barco introduced UniSee, a revolutionary large-scale visualization platform designed to...

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...