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).