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[la forge] 12/11/2017 07:50

,885 Total employees to move to Pertamina

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The Jakarta Post

Jakarta | Sun, November 12, 2017 | 02:25 pm
1,885 Total employees to move to Pertamina Workers tighten a drill at an oil well. (Kompas.com/File)
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Some 1,885 employees of PT Total E&P Indonesie (TEPI) will become employees of state-owned energy firm Pertamina when TEPI ends its operational contract in the Mahakam oil and gas block in Kalimantan.

The block will be taken over by Pertamina Hulu Indonesia (PHI), a subsidiary of Pertamina, on Jan. 1, 2018.

“The transfer of Mahakam block employees from TEPI to PHI has reached 98.23 percent,” said PHI president director Bambang Manumayoso in Jakarta recently, as reported by tribunnews.com, adding that the other employees would reportedly start their own businesses.

He expressed his optimism that the former TEPI employees would help increase the productivity of the oil and gas block in East Kalimantan that will be handed over to the Pertamina subsidiary. “After the takeover, their nationalistic spirit will help Pertamina’s battle to achieve energy sovereignty,” he added.

He said Pertamina was allocating Rp 24.3 trillion (US$1.8 billion) to fund the takeover of the Mahakam block from TEPI.
Read also: Total to start drilling 6 wells in Mahakam field

Currently, Pertamina is drafting its work program and budget for 2018 and it will be discussed with the Upstream Oil and Gas Regulatory Special Task Force (SKKMigas) later this month, said Bambang. (bbn)

[waldron] 11/11/2017 18:53

Why These 2 Big Oil Stocks Jumped in October
They surprised some investors by leaving their U.S.-based peers in the dust.
John Bromels
(TMFTruth2Power)
Nov 10, 2017 at 12:42PM
What happened

Shares of BP (NYSE:BP) and Total SA (NYSE:TOT) jumped in late October to finish the month up 5.8% and 4.1%, respectively. That handily beat the performance of their U.S.-based peers ExxonMobil (NYSE:XOM), which finished up just 1.7%, and Chevron (NYSE:CVX), which actually finished down 1.4%.

Luckily for investors, the reasons are pretty straightforward.
Bills explode from an oil drum as a smiling man holds his arms in the air.

In October, the stock market was kinder to oil majors from overseas than to their U.S. industry counterparts. Image source: Getty Images.
So what

Crude prices rose throughout the month. The spot price of Brent crude rose 7.6% for the month, while West Texas Intermediate crude spot prices were up 5.2%. A chart of BP's and Total's October performances plus the oil spot prices shows a pretty strong correlation:

BP Chart

BP data by YCharts

BP reported third-quarter earnings on Oct. 31 and pleased investors with the announcement it would begin share buybacks, while Total posted strong Q3 earnings on Oct. 27, so combined with improvements in oil prices, it's pretty obvious why their shares would move higher.

As for Exxon and Chevron, you can probably guess what happened: Both released earnings that concerned investors. For Chevron, lower sequential quarterly production spooked Wall Street, causing the stock to sharply tumble. Exxon also reported lower sequential quarterly production, but solid across-the-board performance from all three of its business units may have helped to prevent its stock from dropping like Chevron's.
Now what

Chevron's and Exxon's lackluster post-earnings stock performances make sense, to a point. With oil prices finally seeming to be on the rise, companies that are pumping out less oil should make less profit. However, that overlooks Exxon's improving fundamentals and exciting offshore discoveries in Guyana. It also perhaps underestimates Chevron's Permian Basin potential.

But for BP and Total, the market seems right to be bullish. Even after October's price gains, both companies yield excellent dividends (BP's yield is a best-in-class 5.9%, while Total's 4.9% is also excellent) and have shown they can keep costs in check while expanding production. If oil prices continue to cooperate -- and that's a big "if" -- investors should expect continued outstanding results from both companies.

[grupo guitarlumber] 10/11/2017 14:43

Some U.S. Oil Is a Bit Too Dirty and Costly for an Asian Buyer
By Ann Koh
10 novembre 2017 à 07:35 UTC+1

Some condensate from U.S. shale fields is too dirty to justify the ultra-light oil’s price in Asia compared with the supply from the Middle East, according to a South Korean joint venture of French major Total SA.

Cargoes are being contaminated by lead and mercury, making the supply more expensive to process in the longer run, said Sebastien Bariller, senior vice president of feedstock purchasing at Hanwha Total Petrochemical Co. A cargo of Eagle Ford grade the company bought had 83 parts per million of nitrogen compared with 7ppm found in Qatar’s Deodorized Field Condensate, he said at the Condensate and Naphtha Forum in Penang, Malaysia.

The supplies are getting tainted when pumped through pipelines on their way to storage, said Rusty Braziel, president of consultancy RBN Energy. These pipes are also used to transport heavy crude, meaning that contaminants discolor the “nice clean material” along the way, he said.

Total believes a discount may work. U.S. producers need to “send a lower price signal’’ to encourage investments in upgrading Asian plants so they can process grades with higher amounts of impurities, said Frederic Lasserre, director of market analysis at Total.

“Certainly, U.S. producers aren’t going to discount the material,’R17; said RBN’s Braziel. “What’s going to happen is that U.S. producers are going to clean it out. They’re going to invest in pipelines and tankage and facilities to be able to bring the clean material that you’d like to see, rather than that dirty stuff you’re seeing so far.’’

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE

[waldron] 09/11/2017 06:44

Strong points

The company enjoys attractive valuation levels with a relatively low EV / CA ratio compared to other listed companies around the world.
The company enjoys multiple attractive results. With a PER of 13.97 for 2017 and 13.24 for 2018, the company is one of the cheapest on the market.
Investors looking for returns may find in this action a major interest.
Analysts recently strongly raised their expectations of turnover.
Analysts are positive on the title. The average consensus recommends buying or overweighting the value.


Weak points

Prices are approaching a strong long-term resistance in weekly data, around EUR 49.
Technically, prices are now approaching a strong medium-term resistance, located around 51.45 EUR.
The group's publications have often disappointed in the past, with relatively large negative deviations from expectations.
Expectations of turnover over the last 12 months have largely been revised downward. Analysts expect sales to be lower than they expected a year earlier.

[grupo guitarlumber] 08/11/2017 20:21

Total buys Engie's upstream LNG business for $1.49 billion

London (Platts)--8 Nov 2017 204 pm EST/1904 GMT

Total has bought Engie's portfolio of upstream LNG assets for $1.49 billion, the French oil and gas major said Wednesday.

The deal would boost Total's volumes to around 40 million mt/year of LNG by 2020, "making Total the second-largest global player among the majors with a worldwide market share of 10%," said Patrick Pouyanne, the company's chairman and CEO.

Engie assets acquired include participating interests in the Cameron liquefaction project in the US, long-term LNG sales and purchase agreements, an LNG tanker fleet as well as access to regasification capacities in Europe.

Additional payments of up to $550 million could be payable by Total in case of an improvement in the oil markets in the coming years, it said.

The deal accelerated Total's strategy to integrate along the full gas value chain "in an LNG market growing at 5% to 6% per year," it said.

A stake in the Cameron project would make Total an integrated player in the US LNG market, where the group was already a gas producer, Pouyanne said.

The deal, still subject to various approvals, is expected to close by mid-2018 but has an effective date of January 1, 2018. Engie's LNG operation has around 180 employees. The transaction involves:

-- 2.5 million mt/year of liquefaction capacity, bringing Total's portfolio to 23 million mt/year by 2020;

-- a 16.6% equity stake in the Cameron LNG liquefaction plant with three trains under construction in Louisiana, and the potential for two further trains; -- a 5% equity stake in the first train of the Idku LNG project in Egypt; -- a portfolio of long-term LNG purchase and sale contracts, increasing Total's portfolio to 28 million mt/yr by 2020, with diversified supply from Algeria, Nigeria, Norway, Russia, Qatar and the US, and outlets balanced between Europe and Asia;

-- access to regasification capacities of 14 million mt/year in Europe, adding to Total's 4 million mt/year, and;

-- a fleet of 10 LNG tankers which will be consolidated with the 3 LNG carriers of Total. Separately, Total and Engie are to cooperate in the use of biogas and renewable hydrogen, with Engie becoming Total's primary supplier in this field, Total said.

--Henry Edwardes-Evans, [e-mail]

--Edited by James Leech, [e-mail]

[waldron] 07/11/2017 21:58

aberdenjournals ltd

by Keith Findlay - 07/11/2017 8:47 pm

Total news
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French oil major Total tonight denied claims it used subsidiaries in Bermuda for tax dodge purposes.

As the fallout continued from the so-called Paradise Papers, listing people and businesses who have sheltered their wealth in secretive tax havens, Paris-based Total said: “The group practices a responsible tax policy.

“Total’s establishment of its subsidiaries is not dictated by tax incentives. It meets operational objectives. In particular, it may be justified by the need to keep dollar accounts in order to avoid currency risks, due to the group’s activity, which is not permitted under French corporate law.

“Of the 30 or so subsidiaries concerned in 2012, 13 remained at the end of 2016.”
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The company added: “Total confirms that it has held investments in industrial projects … via companies registered in Bermuda. The group has never hidden the existence of these subsidiaries.

“The use of these companies did not allow any tax optimisation.

“They were set up under non-French legislation to avoid currency risk through the keeping of dollar accounts, while having exactly the same taxation as if these investments had been made via a French company.

“From their creation in 2002 until the end of 2010, these companies have been subject to French tax rules.

“Total did not obtain any tax benefit because of the establishment of these companies in Bermuda in relation to companies incorporated under French law.”

[the grumpy old men] 07/11/2017 16:10

BARCELONE (Agefi-Dow Jones) - BP (BP.LN) and Total (FP.FR) are HSBC's favorite stocks among oil majors, as the bank expects continued oil prices to rise in the coming years years. HSBC believes that the two oil giant's stocks are cheap relative to their rivals and pose low risks, a high dividend yield and good medium- and long-term growth prospects. "We expect a rise in crude for the next two years but, even without it, we believe that the risk / benefit ratio of the sector remains favorable," the bank added. The Total share gained 1% to 49.11 euros, while BP rises by 1.3% to 528 pence.




-Philip Waller, Dow Jones Newswires (French version Aurélie Henri) ed: LBO




(END) Dow Jones Newswires


November 07, 2017 10:11 ET (15:11 GMT)

[sarkasm] 07/11/2017 14:28

Christopher M. Matthews and Christopher Alessi

The refining industry is facing its biggest disruption in years from a looming international air-pollution regulation aimed at slashing the amount of sulfur in marine fuel for ocean-going ships.

The regulation doesn't go into effect until 2020, but its reverberations are already being felt. Analysts predict it will widen the gap between the refining world's winners and losers, making some richer while pushing others to the brink.

Some larger companies, including ExxonMobil Corp., Total SA and Repsol SA have invested billions in recent years to upgrade refineries, which will allow them to produce more lower-sulfur fuel and other products. They say they are prepared for the regulations, which are set by the International Maritime Organization and meant to reduce emissions that health officials blame for respiratory and heart diseases.

Some smaller companies, including Philadelphia Energy Solutions, the largest refinery on the U.S. East Coast, haven't yet begun to make the costly improvements.

"It's the biggest change to hit the industry in a while," said Clint Follette of Boston Consulting Group. "At this point, it's too late for most companies to put in those kinds of investments before 2020."

The International Maritime Organization, the United Nations' shipping regulator, last year mandated that oceangoing vessels cut the sulfur content in their fuel by more than 85% starting in 2020. The world's 50,000 merchant ships can either undergo costly retrofits to their exhaust systems, or use cleaner fuels such as low-sulfur diesel.

Most large ships now use what is known as bunker fuel, a thick, sulfurous type of fuel that is often composed of residual oils, or the leftovers after diesel and gasoline have been separated from crude oil through refining.

Shipping companies are expected to opt for cleaner fuels, which will shrink the market for bunker fuel. Shippers consume as much as 4 million barrels per day of bunker fuel, and the regulation could cut demand by as much as half, analysts say.

That is bad news for simpler refineries in Europe and the U.S. East Coast, which will be stuck a glut of high sulfur fuel leftovers they will be forced to sell at huge discount, Mr. Follette said.

That is bad news for simpler refineries in Europe and the U.S. East Coast that aren't able to process the dregs of the barrel into more valuable fuels and which will stuck with a glut of high sulfur fuel leftovers they will be forced to sell at huge discount, Mr. Follette said.

It is good news for the U.S. Gulf Coast, already the money-making center of the American refining industry. Many refineries there are more complex, meaning that they have technology that can take heavy and sour crude and turn it into more profitable, light products, in addition to bunker fuel.

Companies including ExxonMobil, Chevron Corp., Marathon Petroleum Corp. and Valero Energy Corp. have some of the nation's most complex refineries, according to Stratas Advisors global refinery rankings.

In addition to its existing assets on the Gulf, Exxon, in anticipation of the new rules, is investing more than $1 billion in new equipment that will be able to produce lower-sulfur fuels at a refinery in Antwerp, Belgium.

Others in Europe are also investing. Total has invested $1.31 billion at its refinery complex in Antwerp to increase its diesel capabilities and cut heavy- oil production.

Dario Scaffardi, executive vice president at Saras, said "small and unsophisticated" refiners will "all have a problem" in 2020, because "high sulfur fuel oil will be a product without a home."

The change comes at a bad time for the beleaguered East Coast refining sector, where many refineries have shut down in recent years.

Philadelphia Energy Solutions, a joint venture of private-equity firm Carlyle Group LP and Sunoco Inc., is one of the least complex major refineries in the U.S., according to Stratas Advisors.

The facility processes 335,000 barrels per day and primarily makes gasoline. It is already mired in debt, due to higher costs to secure crude on the East coast than elsewhere in the U.S., declining gasoline consumption and millions it had to spend to comply with earlier regulations to blend ethanol into their fuels.

The company played down the impact of the new rule, saying the U.S. is producing a lot of less sulfurous sweeter crude oil, the type the facility prefers and that while it will reduce the market for bunker fuel, it will increase the market for cleaner fuels.

"The IMO 2020 regulation will create new demand for diesel until the shipping industry adapts to the new regulation," it said in a statement.

Write to Christopher M. Matthews at [e-mail] and Christopher Alessi at [e-mail]



(END) Dow Jones Newswires

November 07, 2017 08:14 ET (13:14 GMT)

[waldron] 07/11/2017 11:29

(Boursier.com) - HSBC has a positive outlook for the oil sector, which should benefit from a continued recovery in oil prices in the coming years. In the specialty, the majors come out of three years of crisis with strengthened structures, which perpetuate their dividends on the basis of oil prices in the zone of 55 dollars a barrel. The two favorite players of the consulting firm are currently Total and BP, which have a low risk profile, good dividend yields and attractive growth prospects in the medium and long term, while being cheap. The analyst therefore recommends buying the French group, the goal is raised from 52.50 to 55 euros.

[the grumpy old men] 07/11/2017 06:06

07/11 Assemblée générale

[waldron] 06/11/2017 20:03

Global gas players continue to downplay LNG role in Europe

Milan (Platts)--6 Nov 2017 236 pm EST/1936 GMT

LNG will continue to struggle to make a significant breakthrough on the European gas market in the coming years -- despite an expected global LNG supply glut -- because of competition for LNG from more premium markets elsewhere and the abundance of low-cost pipeline gas from Russia and Norway, senior industry officials said Monday.

Speaking at a conference in Milan, Italy, officials from Germany's RWE, France's Total and Engie, Norway's Statoil and trader Petronas Energy said the wave of LNG that had been forecast first for 2016 and then for this year had failed to materialize.

"This won't change much in the coming years," Philippe Vedrenne, gas supply director at Engie, said.

Asian demand for LNG has been much stronger than expected -- particularly in China -- and Europe has been able to meet its slightly higher demand from Russia and Norway.

Fasluddeen Hadi, CEO of Petronas Energy Trading, said he was doubtful that more LNG would flow to Europe as a result.

"Maybe not in the near future," Hadi said.

Hadi said the UK would not be expected to import more LNG this winter given that it still has the cushion gas from the Rough storage facility to be produced.

"We won't see much change this year," Hadi said.

"But that could change when Rough is totally out of the equation," he said, referring to when Rough is permanently closed and all the cushion gas produced. LNG COMPETITION

Statoil senior vice president Tor Martin Anfinnsen added that there had not been the expected volumes of LNG into Europe -- and especially not from the US.

But, he said, we do see this "looming volume potential" coming Europe's way.

Anfinnsen said Statoil welcomed increased competition for gas on the European market, not least because it felt it was at a major competitive advantage given its existing pipeline system and its proximity to the European market.

"We can compete with anyone," he said. "When it comes to competition, bring it on."

Andree Stracke, chief commercial officer at RWE Supply & Trading, also made the point that Europe is not the preferred market for LNG from global producers who can get a better price from more premium markets elsewhere -- currently markets such as China and Bangladesh.

Stracke said there had been a significant increase in demand for gas in power generation in Germany, and with the uncertainty surrounding nuclear availability in France, there could be incremental gas demand in neighboring countries too.

"It's not massive, but at least it is additional demand," he said.

Anfinnsen said too that he was buoyed by the increased gas demand in Europe, which has come despite relatively mild winters and the fall-out from the reduction of gas output from the giant Groningen field in the Netherlands and the closure of the UK Rough gas storage facility. CONTRACT LENGTH

Stracke, meanwhile, said any European gas user needed to make the most of the continued liquid gas markets in Europe to optimize their portfolio.

He said that LNG term contracts were still useful tools -- up to 10-12 years.

"Beyond that it would not be possible -- for us at least," he said.

But, he stressed, 10-year LNG supply deals were commercially realistic and RWE was "working on" developing the 10-year contract model -- a hybrid of medium- and long-term arrangements.

"We feel comfortable with a 10-year horizon," Stracke said, adding however that the main stumbling block remained price indexation and how to optimize portfolios.

"It is very hard to buy properly indexed LNG," he said, referring to a price indexed to a European hub such as TTF, NBP or NCG.

He rejected LNG indexed to oil or the US Henry Hub price.

He said, for example, that US LNG sellers are reluctant to index their supply contracts to European hubs.

Jean-Pierre Mateille -- vice president of trading at Total Gas & Power -- said that the benchmark for LNG deliveries into Europe should be the UK NBP or Dutch TTF hubs, and that there was no need to use oil as a benchmark for LNG pricing.

For buyers, liquid markets are also needed to be able to risk manage their portfolios for the coming five years, Stracke said.

He also expressed concern at the impact of falling European gas production -- from Groningen in the Netherlands and in Germany -- and how that could impact on the liquidity of northwest European hubs.

--Stuart Elliott, [e-mail]

--Edited by Maurice Geller, [e-mail]

[waldron] 05/11/2017 22:53

Bloomberg/London

Total won’t give up on its deal to develop Iran’s gas industry so easily.
Even as US President Donald Trump threatens to impose more sanctions on Iran and to pull out of a multilateral pact that made it easier to do business there, the French oil major plans to seek legal advice before deciding what to do, chief executive officer Patrick Pouyanne said.
“We are waiting to see what the US Congress will decide, what would be a new framework of sanctions,” he said on Thursday during a talk at the Chatham House think tank in London. “If we cannot legally pursue, we will have to stop, but we will not give up like that.”
Total signed a deal to develop phase 11 of Iran’s giant South Pars field in July, pledging $1bn of investments. Trump last month declared a hardened stance toward Iran as he refused to certify that Iran is in compliance with the multinational accord to curb its nuclear programme, though he stopped short of repudiating the pact.
Majors like Total are already meant to respect some US sanctions on Iran which include a ban on the use of dollars in business transactions. Total has been able to circumvent this ban by using its own equity rather than project finance, Pouyanne said.
Pouyanne said Total weighed the risks of going back to Iran and believes it will benefit from being first after sanctions were eased in January last year.
“It was a win-win decision,” Pouyanne said. “When you are the first, you have a chance to innovate” and “have the best contract,” he said.

[waldron] 05/11/2017 10:47

Total starts work on Iran’s South Pars field
TEHRAN, 1 hours, 59 minutes ago

France-based energy giant Total has started work on the South Pars Gas Field in Iran, a senior government official was quoted as saying in an Iran Daily report.

"Total has begun its work to develop Iran's South Pars Phase 11," Bijan Namdar Zanganeh said.

New US sanctions against Iran are unlikely to affect the country's oil and gas contracts with foreign states, the report quoted Zanganeh, citing Shana.

Total has opened an office in Washington in a bid to strengthen relations with the US administration as the French oil and gas company prepares to invest billions in Iran.

In July, Total became the first Western energy firm to sign a deal with Iran since the easing of international sanctions in 2015, agreeing to develop Phase 11 of the South Pars offshore gas field with a total investment of $5 billion.

[waldron] 03/11/2017 20:02

By Anthony Shevlin


Total SA (FP.FR) and ERG SpA (ERG.MI) said Friday that they have signed an agreement with Anonima Petroli Italiana SpA (API.YY) to sell the fuel marketing and refining assets in their TotalErg joint venture.

Total said this transaction, which follows the divestment of the commercial sales and liquefied petroleum gas businesses, completes the sale of all of TotalErg's assets for a final amount of 750 million euros ($874 million).

Total said that although TotalErg is the fourth-largest fuel marketer in Italy, the market is fragmented and the profitability outlook was "not in line" with the group's expectations.

The French oil-and-gas company added that it has retained 100% of the joint venture's lubricants activities after acquiring ERG's 51% stake in the division. The move comes as Total focuses on reinforcing its lubricants business in Italy.

The agreement is subject to the approval of the relevant authorities.



Write to Anthony Shevlin at [e-mail]



(END) Dow Jones Newswires

November 03, 2017 14:07 ET (18:07 GMT)

[waldron] 03/11/2017 19:07

By Anthony Shevlin


Total SA (FP.FR) and ERG SpA (ERG.MI) said Friday that they have signed an agreement with Anonima Petroli Italiana SpA (API.YY) to sell the fuel marketing and refining assets in their TotalErg joint venture.

Total said this transaction, which follows the divestment of the commercial sales and liquefied petroleum gas businesses, completes the sale of all of TotalErg's assets for a final amount of 750 million euros ($874 million).

Total said that although TotalErg is the fourth-largest fuel marketer in Italy, the market is fragmented and the profitability outlook was "not in line" with the group's expectations.

The French oil-and-gas company added that it has retained 100% of the joint venture's lubricants activities after acquiring ERG's 51% stake in the division. The move comes as Total focuses on reinforcing its lubricants business in Italy.

The agreement is subject to the approval of the relevant authorities.



Write to Anthony Shevlin at [e-mail]



(END) Dow Jones Newswires