PARIS�Presenting preliminary 2000 results at the first full meeting of the merged TotalFinaElf SA, Chairman and CEO Thierry Desmarest said the group was now half the size of the leading majors instead of one-third previously.
Compared to 1999, pro forma 2000 consolidated sales were up 55% to 116 billion euros, operating income was up 135% to 14.9 billion euros, and net income was up 127% to 7.6 billion euros.
Especially significant was the upstream division, which benefited from 70% of the group's overall capital investments of 7.9 billion euros.
Production rose 6% on year to 2.12 million boe/d. Proved reserves continued to grow, reaching 10.76 billion boe. The 1998-2000 3-year average replacement rate was estimated at 189%, at an estimated cost of $3.70/boe. New production this year from three fields is expected to add 150 million boe/d to yearend 2001 production.
These fields are Elgin-Franklin in the UK North Sea, due on stream at end March; Sincor in Venezuela; and Girassol in Angola's offshore Block 17 where first production of 200,000 b/d is scheduled at yearend 2001.
Exploration capital expenditure will increase by 20% to $750 million this year.
This year will also see the finalizing of South American gas and power assets as TotalFinaElf capitalizes on its growing gas production and reserves there. Operated production in 2000 was 750 MMcf/d, reserves in Bolivia exceed 15 tcf, and the group is eyeing Argentinean blocks Vega Pleyade, Aries, and Carina.
TotalFinaElf is developing positions in gas transportation through acquisition of 9.7% of the Brazilian part of the Bolivia-Brazil pipeline. It has finalized the agreement with TransCanada PipeLines Ltd. to take interests in gas pipelines in Argentina and Chile.
This will seal the switch to gas transport and the transformation of the gas into electricity. TFE has agreed to acquire Gener SA's assets in Argentina. TFE said it now has established positions along the entire Southern Cone gas chain.
With electricity projects in other areas of the world, including a first partnership with Electrabel in the Tawila cogeneration project in Abu Dhabi, Desmarest said the group has developed good synergies between gas production and electricity.
