Project off Congo a key to Elf growth

Elf Aquitaine's Nkossa oil and gas field development off Congo is a key element of the French company's strategy for production growth following 2 years of cost cutting, productivity improvements, and divestitures. On the exploration and production side, Elf is focusing mainly on the Gulf of Guinea and North Sea. Its goal is to build production while sustaining a high level of cash flow and increasing profits.

April 15, 1996

On the exploration and production side, Elf is focusing mainly on the Gulf of Guinea and North Sea. Its goal is to build production while sustaining a high level of cash flow and increasing profits.

Elf plans to spend about 50 billion francs ($9.85 billion) the next 4 years on E&P. That will include developing a third main producing area. Efforts toward that end are under way in Latin America and the Middle East.

Elf E&P spending totaled 12.9 billion francs in 1995 and 16.5 billion francs in 1994.

The company wants to maintain production at about 1 million b/d of oil equivalent (boed) to 2000 and increase production thereafter while bringing costs down further. During the past 2 years, Elf cut its production costs to $3.30/bbl from $4.40/bbl, compared with what it considers to be an industry average of $3.80/bbl.

Elf production averaged 997,000 boed in 1995 and 921,000 boed in 1994.