Doris Leblond
OGJ Correspondent
PARIS, Nov. 6 -- All of Total SA's current upstream projects are profitable with an oil price of $50-60/bbl, Chief Financial Officer Patrick de la Chevardiere told financial analysts Nov. 5.
Implementation of the group's $19 billion investment program for 2008 is going ahead as planned and is 80% achieved, De la Chevardiere said.
As for 2009, Total has two scenarios based on oil at $60/bbl and $80/bbl respectively. "We will maintain control over our capex program as much as we can," he said, referring to the global financial crisis.
"We have plenty of cash to pursue our projects," he said. "For the future, the group is confident it can rely on its strong balance sheet, a cost base that is among the lowest in the industry, and its strict management discipline."
The 5% production drop in third quarter 2008 was due to technical problems and to safety problems in Nigeria, he explained.
De la Chevardiere said the group had received no notice from the Organization of Petroleum Exporting Countries that its planned quota cuts would impact Total's productions in those countries, but he did not exclude such a possibility.