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|Total in deal-making mode could add to Abu Dhabi shareholding
January 14, 2017 Updated: January 14, 2017 09:03 PM
Investment programmes to boost UAE’s non-oil economy
Adnoc chief Al Jaber: We are just getting started after steering unprecedented year of change
Chinese companies top Abu Dhabi list for stake in Adco
BP takes 10 per cent of Abu Dhabi’s Adco onshore oilfields for US$2.2bn
Adnoc to cut January crude supplies to Asia as part of Opec deal
Abu Dhabi oil Adnoc Oil
Total has started to pursue deals more aggressively as oil prices stabilise and could acquire more assets in Abu Dhabi, including an increased stake in its onshore oil concession.
"We had two years where we were under constraint because of the oil price," said Patrick Pouyanné, Total’s chief executive an interview with The National. "We are now out of this period and have more margin to manoeuvre."
The French oil major was the first to take a stake in the new Abu Dhabi Company for Onshore Oil Operations (Adco) concession at the beginning of 2015, when it paid US$2.2 billion for a 10 per cent stake and lead on two of the biggest oilfields, even as it led a wave of industry-wide cost-cutting amid slumping oil prices.
After BP’s share-swap deal last month and earlier stakes by Japan’s Inpex and a GS Energy of Korea, the final 12 per cent of Adco open to foreign buyers has been expected to go to a consortium of Chinese companies, with state-owned China National Petroleum Corp, as a technical partner and CEFC China Energy, a conglomerate, as a financial partner.
But last minute haggling over the terms of the $2.66bn deal has meant it remains competitive, giving Total the potential to increase its stake, according to well-placed industry sources.
Abu Dhabi is one of the most important areas in Total’s portfolio, one of its "core" regions, said Total’s chief executive, in Abu Dhabi for the Atlantic Council Global Energy Forum. "So, I am always looking for opportunities and we are there to be the partner, to bring our technology. We have many ideas to develop our business here."
Total in the past two months has signed a spate of deals, including a new partnership with Brazil’s state oil company, Petrobras, which has been weakened by a corruption scandal. Total’s deal, for an initial $2.2bn, gives it two offshore fields in Brazil’s Santos Basin, as well as infrastructure assets, while Petrobras joins as an investment partner in Total’s Gulf of Mexico prospect.
Last week, Total paid $900 million to nearly double its stake to 55 per cent in the giant Uganda Lake Albert oil project, which is moving into development phase that will require $8bn in infrastructure spending.
Those deals followed Total’s controversial move to be the first Western oil major to sign with Iran since its nuclear sanctions were lifted, committing $2.2bn to help develop a new phase of the South Pars gas mega-complex. Most large oil companies have opted to stay away not only because of the uncertainty over sanctions but also because they wanted to avoid riling Iran’s Arab neighbours, with which Iran has a number of conflicts.
But Mr Pouyanné said the time is right to make bold moves.
"Our strategy is basically to benefit from these low prices," he said. "We have done some deals – like in Brazil, like in Uganda, in Qatar and in Iran – because we think that is the right timing. You make the business when the price is low because the costs are low."
Total has set a capital expenditure target of between $15bn and $17bn a year through 2020 but is flexible.
"Our balance sheet is even stronger so now it is time to stay disciplined, because the [oil] price is not very high, but at the same time we can use our balance sheet and our strength in order to have access to new deals," said Mr Pouyanné.
In the region, Total also acquired a 30 per cent share of Qatar Petroleum’s 25-year Al Shaheen oil concession, which commences this July and commits Total to invest $2bn through 2022 to maintain its 300,000 barrels per day output.
Mr Pouyanné said Total would be interested in Iraq but only if the government makes radical changes to its contracts.
"Total was born in Iraq, you have huge resources there, so of course Total would love to do that but the contracts have been quite poor.
"I am open to see if there are more opportunities in Iraq but … today what was offered in Iraq was not at the level of our expectations on what we have obtained in Abu Dhabi, or Iran or Qatar."
Iraq’s oil minister, Jabbar Al Luaibi, said in Abu Dhabi last week that he didn’t expect new contracts to be resolved until the end of the year.
Total: Saft supplies two battery systems to RTE.
Total (EU: FP)
Intraday stock chart
Today: Wednesday 11 January 2017
More Graphs from the Total Exchange
Saft, a subsidiary of Total specializing in high-tech industrial batteries, said it had supplied two battery systems to RTE for its innovative 'Intelligent Posts' project in the Somme.
After very positive site test results, this smart station has just been put into operation within the public network.
'Intelligent Power Stations' prefigure tomorrow's smart grids and mark an important milestone in the transition to renewable energies,' says Saft.
This pilot project foreshadows the deployment of 'smart' technology in France, planned in several stages from 2020.|
|10/01/2017 | 10:30
According to a market source, CM-CIC Securities confirmed its recommendation Accumulate and its target price of 48 euros on Total after the increase of the group's stake in the Lake Albert project in Uganda. The broker notes that this operation, which must be approved by the government, increases the likelihood of a final investment decision in 2017 and a start-up in 2020 at a development cost of less than $ 10 per barrel.|
|LONDON--Tullow Oil PLC (TLW.LN) said Monday it has entered into a farm-down agreement with Total E&P Uganda B.V. regarding its assets in Uganda worth a total of $900 million in cash.
As part of the agreement, Tullow Oil will transfer 21.57% of its 33.33% stake in Exploration areas 1, 1A, 2 and 3A in Uganda to Total.
Shares at 1540 GMT up 15.30 pence, or 4.7%, at 340 pence valuing the company at GBP3.11 billion.
-Write to Olga Cotaga at [email protected], Twitter @OlgaCotaga
(END) Dow Jones Newswires
January 09, 2017 10:57 ET (15:57 GMT)|
The company has solid fundamentals. More than 70% of companies have a mix of growth, profitability, debt and lower visibility.
The company presents an interesting fundamental situation in terms of short-term investment.
Basically, with a "business value to turnover" ratio of around 1.13 for the current financial year, the company appears to be weakly valued.
Investors seeking returns will find this a major investment.
Over the last week, the Company's earnings per share (BNA) forecasts have been revised upwards. Analysts' latest estimates are higher.
Over the past year, analysts covering the issue have revised upwards their expectations of earnings per share.
The trend in weekly data is positive over the support zone of EUR 42.13.
The prices are approaching a strong long-term resistance in weekly data, located towards 49.72 EUR.
The title is currently in contact with a medium-term resistance located towards 48.93 EUR, of which it will be necessary to be free to have a new potential of progression.
With relatively low expected growth, the Group is not one of the sectors with the highest potential for revenue growth.
The group's publications have often disappointed in the past, with relatively large negative deviations from expectations.|
the grumpy old men
|PARIS--Total SA Tuesday said it has made a $207 million investment in Tellurian Investments Inc. to develop an integrated gas project.
The French oil major said it is acquiring approximately 23% of Tellurian--a private company founded in 2016 and based in Houston, Texas--at $5.85 per share.
"Investing in Tellurian at an early stage will give us the opportunity to potentially strengthen our mid and long term [liquefied natural gas ] portfolio thanks to a very cost competitive project," said Philippe Sauquet, Total's president of gas, renewables and power.
Write to Nick Kostov at [email protected]
(END) Dow Jones Newswires
December 20, 2016 03:54 ET (08:54 GMT)|
|Total to install share price Phase 11 pressure booster station: Zanganeh
Total to install share price Phase 11 pressure booster station: Zanganeh
Total will equip Phase 11 of South Pars Gas Field with a pressure booster station to regularly pump two billion cubic feet of gas per day for nearly 20 years as part of a deal between Tehran and the French energy giant.
Oil Minister Bijan Namdar Zanganeh told Tasnim News Agency on Monday that Total will assume the responsibility to install a pressure booster station in Phase 11 to fix its output at two billion cubic feet per day for 15 to 20 years.
Earlier, Iran and Total signed an agreement on the development of South Pars Phase 11. The deal involves a consortium led by Total, which also includes China National Petroleum Corporation (CNPC) and Iran's Petropars.
The first output of the phase is expected 40 months after the deal is struck, the minister further said, noting that Total will set up the pressure booster at the huge energy hub three to four years after the first production.
Noting that the move is aimed at tackling the drop in energy pumped from Phase 11, he added that other phases of the gas field will be also equipped with pressure booster stations in the future.
According to the deal, Total would operate the project with a 50.1 percent stake, while Petropars, a subsidiary of the NIOC, and Chinese state-owned oil and gas company CNPC would have a 19.9 percent and 30 percent stake, respectively.
South Pars Phase 11 will have a production capacity of 1.8 billion cubic feet per day, or 370,000 barrels of oil equivalent per day. The gas from the field will be fed into Iran's gas network.
South Pars covers an area of 9,700 square kilometers, of which 3,700 square kilometers are in Iran's territorial waters in the Persian Gulf. The remaining 6,000 square kilometers are located off Qatar.
The gas field is estimated to contain a significant amount of natural gas, accounting for about eight percent of the global reserves, and approximately 18 billion barrels of condensates.|
|Utilities | Fri Dec 16, 2016 | 7:30am EST
Total cuts scrip dividend discount on improved outlook
* Total's shares among top gainers in Paris
* Analyst says expect Total to move away from scrip soon
* Total cancels treasury shares, no financial impact
PARIS, Dec 16 French oil and gas company Total on Friday cut the discount offered for its shares in a scrip dividend scheme for the second quarter to 5 percent from 10 percent citing improved confidence in its outlook and rising oil prices.
Oil companies have used the scrip dividend programme to maintain rather than cut dividends due to the prolonged fall in oil prices in a global glut.
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Prices have rebounded from lows hit earlier this year after the Organization of the Petroleum Exporting Countries agreed to cut output by 1.2 million barrels per day (bpd) from Jan. 1, its first such deal since 2008. Russia and other non-OPEC producers plan to cut about half as much.
Brent crude futures were trading at $54.27 per barrel at 1153 GMT.
Total has said it will remove the scrip dividend scheme if oil is at around $60 per barrel in 2017.
It said in October that it was on track to deliver on its cost reduction programme, and will deliver $4 billion in savings by 2018, while increasing output.
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Total's shares were among top gainers in the Paris CAC 40, up 1.54 percent, outperforming the European Oil and Gas index , up 0.99 percent by 1136 GMT.
"We see this as a clear positive. We see this as a step in the right direction for Total, on the way to a full cash dividend, and shows the company has confidence in its delivery of free cash flow in 2017," RBC's Biraj Borkhataria, said in a note.
"We continue to believe Total should be one of the first majors that currently offers a scrip to move away and towards a full cash dividend, given the strength of its growth pipeline over the next few years," Borkhataria said.
Total said in a separate statement after a board meeting on Thursday that it will cancel 100,331,268 treasury shares that were previously repurchased off-market from four affiliates. It said the aim was to tidy its capital structure and the cancellation will have no financial impact. (Reporting by Bate Felix; Editing by Ruth Pitchford)|
LONDON (Dow Jones) - Royal Dutch Shell (RDSA.LN) will sign an agreement Wednesday for the development of a major oil field in Iran, said a spokesman for the Iranian Ministry of Petroleum, suggesting that giants Of energy do not intend to leave the commitment of US President-elect Donald Trump to break the Iranian nuclear deal preventing them from investing.
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French major Total also intends to sign its second major development contract in Iran, said the Wall Street Journal spokesman. Total was the first Western oil company to return to Iran with a major project, announced on November 8, the very day of the presidential election in the United States.
The contracts concern the development of the oil fields of South Azadegan and Yadavaran, two large-scale projects, important for the future of the Iranian oil sector.
Shell declined to comment on this information. Total did not respond to requests for comments at this time.
-Benoît Faucon, The Wall Street Journal
(French version Valérie Venck) ed: ECH
Dow Jones Newswires
December 07, 2016 04:02 ET (09:02 GMT)
More information on Http://investir.lesechos.fr/actions/actualites/shell-et-total-prets-a-signer-des-contrats-pour-des-projets-en-iran-gouvernement-iranien-1614935. Php # j81Ae0VdoQy1Wql6.99|
|GOOGLE TRANSLATION FROM FRENCH
Published on 07/12/2016 at 09h51
(Boursier.com) - If BP remains the preferred value of Barclays in the petroleum sector in Europe, the analyst also appreciates Total, whose target price was raised this morning from 55 to 56.50 euros. The consulting firm estimates that after a period of strong investment in the first part of the decade, the French oil major is clearly now in harvest mode of the efforts made, taking advantage of high margin projects and its efficiency program internal. Despite a difficult macroeconomic environment, progress in results will be visible by 2020, according to the specialist, who believes that the group will be able to continue to reduce its break-even ratio compared to oil prices.|
|Suez, Total partner to recycle used cooking oil
Source: Xinhua 2016-12-07 01:19:45 [More]
PARIS, Dec. 6 (Xinhua) -- French water and waste management group Suez and French oil giant Total on Tuesday announced a ten-year agreement to process used cooking oil into bio-fuel.
According to the agreement, Suez will supply 20,000 metric tons of used cooking oil a year to Total and the oil will be processed into bio-fuel at Total's La Mede bio-refinery which is located in the southeast of the France, the two French groups said.
The partners noted that their alliance will increase the amount of used oil collected by over 20 percent. Currently, about 45,000 metric tons of used cooking oil out of an estimated total surpassing 100,000 metric tons is collected in France.
Suez will also deploy a nationwide oil collection and recycling system suitable for all types of producers, from consumers to the agri-food businesses. The oil will be transported to La Mede for preliminary treatment in a filtration unit built by Suez.|
|Statoil, BP, Total team wins again in Mexico deep water auction
Dec 5 Mexico awarded a consortium of Statoil, BP and Total the third block tendered in the Gulf of Mexico's Salina Basin in a historic deep water oil and gas auction on Monday.
Block 3 is a 1,269 square mile (3,287.1 square km) block which the energy ministry says contains some 1.669 billion barrels of oil equivalent (boe) in light crude and natural gas.
Earlier, the same consortium won the first block auctioned from the Salina Basin. (Reporting by Dave Graham)|
|Published on 05/12/2016 at 09h46
(Boursier.com) - Total moved up slightly this morning to 45.10 euros, out of a gain of 0.6%, finally benefiting quite little from the sharp rise in oil prices last week. The major has however a new aficionado in the person of ABN Amro, which recommends since this morning to its customers to buy the title, aiming 50 euros. 61% of analysts following the file have a favorable opinion. The average objective is € 52.252.|
|Oil prices rose for a third straight day on Friday, after OPEC's agreement to cut output for the first time in eight years.
U.S. crude futures rose 62 cents, or 1.21%, to $51.62 a barrel on the New York Mercantile Exchange, its highest settlement since July, 2015. Brent, the global benchmark, gained 52 cents, or 0.96%, to $54.46 on London's ICE Futures Exchange.
Crude prices have surged since the Organization of the Petroleum Exporting Countries agreed to pull back their output by 1.2 million barrels a day. "At this point I don't think too many people are willing to stand in front of it," said Ric Navy, senior vice president for energy futures at RJ O'Brien & Associates.
Oil's advances stalled overnight, however, with U.S. crude futures pulling back to $50.18 as investors took profits following the dramatic rally. But crude prices resumed their march higher later, as the market looked set to hold on to most of its recent gains.
U.S. crude futures gained 12.2% this week -- the largest weekly percentage gain since 2009. But market participants say crude's rally could be running out of steam.
"I think it's getting close to the end of its rope," said Mark Waggoner, president of Excel Futures. "I see it getting tired and falling back. I just don't see this as a game changer when they're pumping as much as they are."
The deal to cut production is expected to take effect in January, and participating oil-producing nations will reassess in six months with an option to extend the accord for another six months.
If the deal is fully observed, it could shift the market into a deficit as early as the first half of next year. Brent prices could move higher to average between $55 and $60 a barrel in 2017, said Simon Flowers, chief analyst at consultancy Wood Mackenzie. "However, this does depend on OPEC being very careful to meet the terms of the agreement," he cautioned.
Skepticism over members' compliance with production quotas remains, as members have cheated their quotas in the past by underreporting or producing beyond their allotted limits.
Moreover, the OPEC supply action could cause some oil producers to lose market share as oil producers who aren't participating in the deal ramp up their output.
"It is a dangerous game that Saudi Arabia is playing," said Michael Cohen, the head of energy commodities research at Barclays. "Should prices rise too high then the amount of shale oil that comes into the market will eventually start to cut into their market share."
The U.S. put three more oil rigs back to work in the latest week, bringing total active rigs to 477, the most since late January, according to Baker Hughes.
Gasoline futures gained 1.21 cents, or 0.78%, to $1.5591 a gallon. Diesel futures rose 1.02 cents, or 0.62%, to $1.6581 a gallon.
--Jenny W. Hsu and Dan Molinski contributed to this article.
Write to Alison Sider at [email protected] and Neanda Salvaterra at [email protected]j.com
(END) Dow Jones Newswires
December 02, 2016 15:50 ET (20:50 GMT)|
|Total Petrochemical & Refining USA reported reduced unit rates of operations and emissions at its refinery in Port Arthur, Texas.
"A Pressure Safety Valve (PSV) relieved to the Flare Gas Recovery System which became oversupplied resulting in intermittent flaring from the North Flare," the refinery said in a statement to the Texas Commission on Environmental Quality. "Unit operations rates were reduced."
It said the emissions began Sunday morning and lasted about five hours.
The 225,000-barrel-a-day refinery is located east of Houston.
Write to Dan Molinski at [email protected]
(END) Dow Jones Newswires
November 28, 2016 16:38 ET (21:38 GMT)|
|No Drop In Demand For Oil Over Next Decade, Says OPEC
Lisa Smith -
November 26, 2016
The world is going to guzzle even more oil, according to the latest five-year market outlook from the Organisation of Petroleum Exporting Countries (OPEC).
This is a U-turn from last year’s report which bemoaned a drop in demand.
OPEC reckons that businesses and consumers will want an extra million barrels a day by 2020, pushing demand up to 33.7 million barrels a day.
OPEC supplies around a third of the world’s oil. The organisation is a trade body for countries such as the Gulf States, African oil producers and others around the world, such as Venezuela.
The key oil big producers of the US and Russia are not represented by OPEC.
Modest increase in output
The increase in demand is modest – only 300,000 or so barrels a day than OPEC is pumping out of the ground today.
And the report predicts no growth until at least 2021.
OPEC refused to cut production as the price of oil slumped from more than $100 a barrel two years ago to around $48 a barrel today.
The move has triggered a glut, with oil stored in tankers taken out of mothballs as OPEC tried to muscle shale oil in the US and Canada out of the market.
OPEC also reports that demand for oil is expected to reach a peak in 2030 at 6.73 million barrels a day – well up from the 2015 forecast of 5.61 million barrels a day.
Demand to peak before supply
The research also predicts the OPEC share of the market will increase over the next decade as shale oil becomes too expensive to compete and drops out of contention.
The report also expects the price of oil to rise to around $60 a barrel by the end of 2020
However producer BP reckons demand will peak before supply due to efforts to bring more nuclear power online and an increase in supplies of natural gas and renewable energy.
“While the recent oil market environment has been one of oversupply, it is vital that the industry ensures that a lack of investments today does not lead to a shortage of supply in the future,” said OPEC Secretary-General Mohammed Barkindo.|
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