Total Share Discussion Threads

[la forge] 15/1/2018 15:31

Total's average Q4 natural gas price realization at two-year high of $4.23/MMBtu

London (Platts)--15 Jan 2018 930 am EST/1430 GMT

France's Total reported Monday an average global realized gas price of $4.23/MMBtu in the fourth quarter of 2017, a two-year high, as cold weather in the US, Europe and northeast Asia in the latter part of the quarter triggered increased demand and higher wholesale prices.


Gas prices boosted by cold weather, increased demand
TTF averaged $6.60/MMBtu in Q4, NBP $6.84/MMBtu
Q2, 2016 marked 14-year low point for French major


Total's Q4 realized price was a 9% increase on the same quarter of 2016 and a 4% rise compared with the Q3, 2017 average price.

The company's average realized price was last higher in the fourth quarter of 2015 when it was $4.45/MMBtu, before gas prices slumped to multi-year lows on slow demand and well supplied markets, especially in the US and Europe.

The second quarter of 2016 still marks the 14-year low point for the French major's realized gas price at $3.43/MMBtu -- it was previously lower only in Q3, 2003 when the price dropped to just $3.04/MMBtu.

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Just under 40% of Total's gas production is concentrated in Europe and the Caspian region, which together accounted for 2.56 Bcf/d of the company's 6.43 Bcf/d output in Q3.

Gas prices in Europe were up strongly in Q4 compared with Q3 on continued strong demand and some supply tightness.

According to S&P Global Platts assessments, the average Dutch TTF day-ahead price in Q4 was $6.60/MMBtu and the equivalent UK NBP price was $6.84/MMBtu.

That compares with $5.54/MMBtu on the TTF in Q3, while the equivalent UK NBP price was $5.41/MMBtu.

Total is less exposed than some of its European peers to the low US gas prices, with production in the Americas making up just one sixth of its total gas output.

Total's realized gas prices ($/MMBtu)

Q4 2017 4.23
Q3 2017 4.05
Q2 2017 3.93
Q1 2017 4.10
Q4 2016 3.89
Q3 2016 3.45
Q2 2016 3.43
Q1 2016 3.46
Q4 2015 4.45
Q3 2015 4.47
Q2 2015 4.67
Q1 2015 5.38
Q4 2014 6.29
Q3 2014 6.40
Q2 2014 6.52
Q1 2014 7.06

--Stuart Elliott, [e-mail]
--Edited by Jeremy Lovell, [e-mail]

[sarkasm] 14/1/2018 11:20

TEHRAN (FNA)- Iranian Minister of Petroleum Bijan Zangeneh said the National Iranian Oil Company (NIOC)'s gas deal with French energy giant Total is being executed on schedule and all the project's tenders, excluding one for drilling operations, have been held.

The official said all the contractors, except for one, who have signed in the tenders are domestic companies.

In July 2017, Total and the National Iranian Oil Company (NIOC) signed a contract for the development and production of phase 11 of South Pars (SP11), the world's largest gas field. The project will have a production capacity of 2 billion cubic feet per day or 400,000 barrels of oil equivalent per day including condensate. The produced gas will supply the Iranian domestic market starting in 2021.

This contract, which has a 20-year duration, is the first Iranian Petroleum Contract (IPC) and is based on the technical, contractual and commercial terms as per the Heads of Agreement signed on November 8, 2016.

Total is the operator of the SP11 project with a 50.1% interest alongside the Chinese state-owned oil and gas company CNPC (30%), and Petropars (19.9%), a wholly owned subsidiary of NIOC.

[ariane] 12/1/2018 11:15

‘Shell is considering bidding for Dutch green energy group Eneco’ Business January 12, 2018 Photo: Depositphotos.com Anglo-Dutch oil and gas group Shell is making preparations to bid for green energy firm Eneco whose owners, made up of 53 local councils, are divided about its future, the Telegraaf said on Friday. At the same time, a dispute between the local authority shareholders and the company’s board is threatening to slow down the sale process, the paper said. Shell has hired an unnamed US-based merchant bank to help it in a possible bid for Eneco, sources within the banking industry told the paper. But Shell itself reacted with a short and powerful ‘no comment’, the Telegraaf said. Shell is not the only fossil fuel giant considering a bid for the Dutch green energy group. According to the paper, Shell’s French rival Total also contacted advisors this month about a possible bid. A sale could raise about €3bn which would come in handy for the 53 local councils which currently own Eneco and 75% of them back a sale. Nevertheless, 29 of the city councils involved – representing some 85% of the shares – have recently written to the aldermen in charge of the sale, saying they had lost confidence in Eneco’s supervisory board and demanding an extraordinary shareholders’ meeting. Fossil fuels Despite Shell’s poor ‘fossil fuel’ image, the company offers many advantages to Eneco board members and shareholders, the Telegraaf said. For example, the company could easily finance a takeover without having to borrow money and is unlikely to dismiss staff or close its headquarters unit. Other potential buyers include investment company HAL, pension fund PGGM, Japan’s Mitsubishi, Austrian energy group Vebund, private equity group CVC and French energy giant Engie.

Read more at DutchNews.nl: ‘Shell is considering bidding for Dutch green energy group Eneco’

[waldron] 11/1/2018 08:51

Oil Companies to Sign Contract with Lebanon at the End of January
Beirut, Jan 11 (Prensa Latina) At the end of this month, three oil companies will sign contracts with the Lebanese government to begin the exploration of oil and gas in maritime blocks in 2019, Energy and Water Minister Cesar Abi Khalil announced today.

The Council of Ministers gave permission in December to specify the authorization by means of which the companies Total, of France; Eni, from Italy, and Novatek, from Russia, will begin prospecting work in coastal areas of the north and south.

That trio of companies won a tender submitted by the Lebanese government to award blocks four and nine.

Earlier, Lebanese Foreign Minister Gebran Bassil considered an act of resistance against Israel, the granting of licenses to explore oil and gas in Lebanese jurisdictional waters.

Bassil said the permits to track black gold in blocks four and nine are a way of reaffirming Lebanese law in the border area disputed with Israel.

The nation of cedars requested assistance from UN experts in order to limit a triangular area of 870 square kilometers on the southern maritime border, but Israel rejects external mediation.

At the time, the Speaker of the Parliament, Nabih Berri, sought support from the office of the United States Special Coordinator for Lebanon with the objective of negotiating an agreement with the Tel Aviv regime.

sgl/lrp/mem/arc

[sarkasm] 10/1/2018 09:21

France's Total SA (FP.FR) said late Tuesday that shareholders exercised 21% of their rights to receive their dividend payment in shares, leading the company to issue 7 million new shares.

The figure represents 0.28% of the company's total share capital at year's end, Total said.

It will pay out the remaining dividend--totaling 1.2 billion euros ($ 1.47 billion)--in cash on Jan. 11, when it issues the new shares.

Total had given shareholders the option to receive the second interim dividend in shares or in cash after a board meeting on Dec. 12.



Write to Alberto Delclaux at [e-mail]



(END) Dow Jones Newswires

January 10, 2018 01:33 ET (06:33 GMT)

[waldron] 08/1/2018 20:16

Alexander Bueso
WebFG News
08 Jan, 2018 15:35
Morgan Stanley ups targets for BP and Shell, despite 'peak oil demand' concerns
BP, oil, gas
Total
48.04
16:35:22 08/01/18
0.44%
0.21
BP
527.40
16:35:20 08/01/18
-0.42%
-2.20
Royal Dutch Shell 'A'
2,525.50
16:35:22 08/01/18
-0.18%
-4.50
Royal Dutch Shell 'B'
2,560.00
16:35:06 08/01/18
-0.12%
-3.00
Eni
14.52
15:56 08/01/18
0.62%
0.09
Statoil
182.90
15:25:03 08/01/18
0.33%
0.60
FTSE 100
7,696.51
16:35:30 08/01/18
-0.36%
-27.71
CAC 40
5,487.42
17:05:01 08/01/18
0.30%
16.67
FTSE MIB Index
22,845.69
18:29 08/01/18
0.37%
83.40
DJ EURO STOXX 50
3,616.45
16:50:00 08/01/18
0.24%
8.82
FTSEurofirst 300
1,565.73
17:20:33 08/01/18
0.23%
3.60
Oil & Gas Producers
9,171.60
16:20 08/01/18
-0.23%
-20.90
FTSE 350
4,285.63
16:35:30 08/01/18
-0.36%
-15.46
FTSE All-Share
4,231.99
16:40:15 08/01/18
-0.34%
-14.38
Energy Producers
0.00
16:17 25/09/06
0.00%
0.00

Analysts at Morgan Stanley revised their price targets for a broad swathe of the European oil majors higher, despite 'peak oil demand' concerns in the marketplace, naming BP and Shell as their 'top picks' in the process.

Following three years of painful 'self-help' and restructuring, the oil majors were likely to see the full benefit of those measures flow-through in 2018, they said.

Hence, they revised their targets for the pair from 595p and 2,930p to 645p and 3,040p, respectively.

"Coinciding with an improvement in oil market fundamentals and a rally in prices, the impact on FCF could be dramatic," the broker said.

Their output was set to continue growing at roughly a 3.5% pace each year out to 2020, as new projects continued to ramp-up, while downstream earnings - which had doubled since 2014 - were seen rising further.

In parallel, cuts to capital expenditures and operating expenditures of approximately 40% and 20%, respectively, since 2014, were also likely to stick, they said.

Neither was there much cost inflation on the horizon and debt reduction would continue to be a priority.

"With the oil price collapse still fresh in the mind of managements,and the looming threat of 'peak oil demand', we expect the focus on cost and capital discipline to stay intense, aiding the FCF recovery."

"'Peak demand' concerns may weigh but probably won't prevent outperformance: 'Peak oil demand'has also become a bigger part of the debate however,ant it is therefore a genuine question whether the market will still value the sector in the same way as in the past. Inside we argue that this is still likely. History is still a guide to the future when it comes to Big Oil valuations."

In the same research note, Morgan Stanley also upped its targets for Eni (from €13.4 to €14.6), Statoil (from Nkr 159 to Nkr 173) and Total (from €55.0 to €56.0).

[la forge] 05/1/2018 14:31

DIVI PAYMENT DUE

11/01/2018 Acompte 0.62€

[grupo guitarlumber] 04/1/2018 18:15

Financial Announcements & Roadshows

08 FEB 2018
2017 Results & Outlook Presentation


26 APRIL 2018
First Quarter 2018 Results

01 JUNE 2018
Annual Shareholders Meeting

26 JULY 2018
Second Quarter 2018 Results

25 SEPTEMBER 2018
Strategy & Outlook Presentation 2018

26 OCTOBER 2018
Third Quarter 2018 Results

[sarkasm] 04/1/2018 17:51

Total’s $16bn Egina FPSO to reach Nigeria by Q1 2018
By Oil and Gas Republic on Jan 4, 2018@ogrepublic

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Total Egina FPSO

Total’s $16 billion Egina FPSO project have left the port of Gohyeon, Geoje shipyard in South Korea on October 31st, 2017, sailing to Nigeria for the final integration. Confirming the development, Chief Operating Officer of Samsung in Nigeria, Mr. Frank Ejizu, said the sail of the FPSO was a great achievement for the oil and gas industry and Nigerian economy.

SHI won the contract to build Egina FPSO in 2013, a turn-key project in which Samsung covered the entire engineering, procurement, construction, transport, and commissioning of the 2.3 million barrels capacity FPSO for the Egina oil field, located in Oil Mining Lease (OML) 130, offshore Nigeria.

The Egina FPSO, built by Samsung Heavy Industries (SHI) for Total Upstream Nigeria Limited (TUPNI) for the 200,000 barrels per day Nigeria’s Egina deepwater field, sails to Lagos for integration in the Samsung Yard (SHI-MCI FZE) in Tarkwa Bay, the first Floating Production Storage Offshore (FPSO) module fabrication and integration facility in Africa.

SHI has now successfully built three massive offshore projects. Namely, the Ichthys CPF, the world’s largest floating gas processing facility, which was delivered in April 2017 and Prelude FLNG, the world’s largest FLNG, left Geoje in June 2017.

Total’s Egina FPSO project is under the Nigerian local content regulations, and in executing the project SHI formed a joint venture (SHI-MCI) with a Nigerian local company, established a production facility in Lagos, Nigeria to meet the local content requirements. The remaining topside module integration and commissioning will take place in Nigeria for scheduled delivery in the second half of 2018. It will create thousands of job opportunities and will be promoting the Nigerian Local Content.

Following completion, the FPSO will be moored at the Total-operated Egina oil field, located some 130 km off the coast of Nigeria at water depths of more than 1,500 meters.

Apart from the FPSO, infrastructure on the field will consist of an oil offloading terminal, and subsea production systems that will include 52 kilometers of oil and water injection flowlines, 12 flexible jumpers, 20 kilometers of gas export pipelines, 80 kilometers of umbilicals, and subsea manifolds.

Managing Director and Chief Executive of Total Upstream Companies in Nigeria, Nicolas Terraz, confirmed to the media on the recent 2017 Nigeria Annual International Conference and Exhibition of the Society for Petroleum Engineers (SPE), that the Egina FPSO has sailed away from Samsung Heavy Industries yard in South Korea heading to Nigeria.

Represented by the company’s executive director in charge of corporate affairs and services, Abiodun Afolabi, he said that the FPSO will arrive in Nigeria after the fourth quarter where the six locally fabricated topside modules will be integrated on the FPSO at SHI-MCI Yard before final sail-away to Egina field, deep offshore Nigeria.

Furthermore, after the local integration of the six FPSO’s modules and over 8,000 tons of structures, the FPSO will sail away to the Egina oil field, which will add 200,000 barrels per day to Nigeria’s current crude oil production when it comes on stream in 2018.

The Nigerian Maritime Administration and Safety Agency (NIMASA), has commenced preparations to receive the vessel amid tight security and safety procedures.

The Director General, NIMASA, Dakuku Peterside, said the Egina project, is the first of its kind in the history of Nigeria, and will increase the knowledge base of NIMASA and ultimately fetch the country the much needed foreign exchange.

The Director General visited the Samsung Shipyard in the Samsung Heavy Industries in Geoje, South Korea to inspect the project. He said that the Total’s Egina FPSO Project is the first of its kind in Nigeria as it will increase knowledge base of inspection techniques, certification and rules for maintaining classification and ultimately benefit the Nigerian economy in terms of foreign exchange.

He also assured Total and other prospective investors that NIMASA would continue to create a conducive environment to build investors’ confidence to enable them come up with more projects.

He further commended Samsung and Total E&P for building confidence in Nigerian local content, and efforts to comply with the Nigerian Content Law. He also urged the Executive Vice President of Samsung to ensure compliance to the Cabotage Law and other enabling Nigerian laws when the FPSO berths in Nigeria.

[sarkasm] 02/1/2018 10:00

Pertamina Takes Over Operation of Indonesia's Largest Oil and Gas Field

Pertamina started operating the Mahakam block offshore East Kalimantan on Monday (01/01), completing the takeover of Indonesia's largest oil and gas block from France's Total E&P Indonesie and Japan's Inpex. (Antara Photo/Akbar Nugroho Gumay)
By : Whisnu Bagus Prasetyo | on 5:49 PM January 01, 2018
Category : Business, Corporate News

Jakarta. State energy company Pertamina started operating the Mahakam block offshore East Kalimantan on Monday (01/01), completing the takeover of Indonesia's largest oil and gas block from France's Total E&P Indonesie and Japan's Inpex.

Total and Inpex have operated the block for 50 years, with oil and gas output contributing about 13 percent of Indonesia's total production.

"As a representative of the Indonesian government, we would like to acknowledge the contribution and hard work by Total E&P Indonesie as contractor on the Mahakam oil and gas block and Inpex Indonesia as its partner," Amien Sunaryadi, the head of SKK Migas, Indonesia's upstream oil and gas regulator, said on Monday.

This takeover will see Pertamina contributing more than 30 percent of the nation's oil and gas production in 2018.

Subsidiary Pertamina Hulu Mahakam, which will handle the block's operation, has retained about 98 percent of the workers employed by the previous operators.

Pertamina Hulu Mahakam has also maintained contracts worth $1.27 billion in total with existing contractors to ensure continuity of production, said Syamsu Alam, Pertamina's upstream director.

Pertamina has set aside $1.7 billion for exploration, development and production activities in the Mahakam block this year to maintain the production rate.

The block produced around 52,000 barrels of oil and 1.36 million cubic feet of natural gas per day in November, the latest data from SKK Migas shows.

The block had proven reserves of 4.9 trillion cubic feet of gas, 57 million barrels of oil and 45 million barrels of condensate as of Jan. 1, 2016.

SKK Migas has set a target for the Mahakam block to produce 42,010 barrels of oil and 916 million standard cubic feet of gas per day this year.

Pertamina Hulu Mahakam plans to drill up to 69 exploration wells, up from 14 currently, to search for new reserves.

[florenceorbis] 01/1/2018 10:57

TOTAL: Under resistances, consolidation is likely
TEC on 01/01/2018 at 08:20
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TOTAL: Under resistances, consolidation is likely

SYNTHESIS

The MACD is negative and below its signal line. This configuration degrades the outlook on the title. The RSI does not yet indicate an oversold so the further decline is technically possible. Stochastic indicators do not give clear signals for the coming days. The traded volumes are below average volumes over the last 10 days.

MOVEMENTS AND LEVELS

The title is downward. It is below its 50-day moving average at 46.64 EUR. The 20-day moving average is below the 50-day moving average. Our first support is 44.93 EUR, then 44.28 EUR and the resistance is 47.89 EUR, then 48.55 EUR.
Last class: 46.04
Support: 44.93 / 44.28
Resist: 47.89 / 48.55
Short term opinion: negative
Medium term opinion: negative

[waldron] 29/12/2017 18:32

UK's Elgin Franklin natural gas field production 'back to normal levels'

London (Platts)--28 Dec 2017 705 am EST/1205 GMT

Natural gas production at the Elgin Franklin field in to North Sea is "back to normal levels," operator Total said in a REMIT message Thursday morning.


8.5 mil cu m/d available capacity for Thursday's gas day
Gas flows into Bacton SEAL running at 9 mil cu m/d
Full 10 mil cu m/d capacity due by early Friday


Elgin Franklin, which has a technical capacity of 10 million cu m/d, will have 8.5 million cu m/d of available capacity during Thursday's gas day.

Total said that "delivery to Bacton SEAL will slowly increase over the course of the day to normal rates."

National Grid data showed that flows into the UK National Transmission System through the Bacton SEAL receiving terminal were running at 9 million cu m/d at 1030 GMT Thursday.

Gas production at Elgin Franklin was halted on December 12 due to the closure of the Forties Pipeline System, where flows resumed earlier in the week.

Ineos said in an update Thursday morning that the repair of the pipeline at Red Moss was "mechanically complete," and that "all restrictions on the flow of oil and gas from platforms feeding into the pipeline system have been fully lifted."

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

[ariane] 28/12/2017 23:28

Two top oil major share picks for 2018
By Graeme Evans | Thu, 28th December 2017 - 09:34
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Two top oil major share picks for 2018

The journey has been long and hard, but there's a good chance that 2018 will mark a "sweet spot" for oil majors Royal Dutch Shell (RDSB) and BP (BP.).

That's the view of UBS analysts, who believe there's now a clearer picture of the industry after three years in which companies have scrambled to bring down costs and investment levels in line with oil prices.

In their note "The end of the beginning", UBS's European oil and gas team said an oil price in the $60 to $80 a barrel range now looked increasingly plausible.

They added: "We could be entering the sweet spot for the integrated sector with oil prices recovering, the downstream strong and spending under control."

Having reset their businesses between 2015 and 2017, UBS estimates that the point of cash neutrality for oil majors is likely to be $51 dollars a barrel in 2018. This figure crossed below the oil price in the second half of 2017.

They said: "The prospect for 2018 and 2019 is a sector that funds its investments and dividends and can generate attractive free cash flow (FCF) over and above that.

"We expect the excess FCF to be used to reduce debt, reduce equity in issuance and perhaps some tactical M&A."

Cash returned to shareholders is calculated to rise by 48% in 2018 versus 2017.

UBS makes no apology for having the same two top picks for 2018 as in 2017 - Royal Dutch Shell and Eni (E).

It said Royal Dutch Shell continues to represent the best example of the integrated business model. Its preference for Shell is based on a qualitative judgement of its portfolio and an upside comparison with the much higher-rated international peer, ExxonMobil (XOM).

UBS believes that 2018 will be a year of execution for Shell, having been through the pain of resetting its financial model and dealing with the market's negative reaction to its acquisition of BG Group.

UBS said the criticism of the BG deal misunderstood the weakening competitive position of the legacy Shell portfolio and the quality of the acquisition.

It added that recent Shell investor days have highlighted the value that this deal has brought, and the catalyst it represented on the wider restructuring of the group, which is not fully appreciated by the market.

UBS has a price target of 2,675p, which is based on a 2018 enterprise value (EV)/ debt-adjusted cash flow multiple of 7.4. This is about a 25% premium to the three-year average, reflecting improved capital productivity, and a modest premium to European peers reflecting the company's portfolio advantage.

BP and Total (TTA) are also 'buys' as they join Shell in the "sweet spot" for shareholder value generation.

BP has made significant strategic progress in 2017, while its Gulf of Mexico oil spill payments are expected to tail off significantly in 2018. Six of its seven major projects for 2017 have started up, with the other about to get underway.

UBS forecasts 2016-21 production growth at about 3% per annum.

The company's downstream operations have also been surprisingly strong, with retail, brand driven marketing and lubricants justifying a premium to the corporate multiple.

UBS has a 'buy' recommendation and 550p price target based on an EV multiple of 7.0, with projected 2018 dividend yield of 6.1%.

[waldron] 28/12/2017 09:15

Providence Resources PLC (PZQA.DB) said Thursday that Total S.A. (FP.FR) has exercised its farm-in option for a 35% interest and operatorship in the Frontier Exploration License 2/14 in the southern Porcupine Basin, leaving the Irish firm with a 28% interest.

The Irish-based oil-and-gas exploration company said in June that it had entered into the option agreement with Total E&P Ireland B.V., a wholly owned subsidiary of Total S.A. The deal is conditional upon approval by the Minister of State at the Department of Communications, Climate Action and Environment.

As announced on June 7, Total has paid $27 million to Providence and its partner Sosina Exploration Ltd., $21.6 million of which has been paid to Providence. Capricorn Ireland Ltd., a subsidiary of Cairn Energy PLC (CNE.LN) has a 30% interest in the license, with Sosina Exploration owning 14%.

Providence also said that farm-out talks over the Barryroe Field--Standard Exploration License 1/11--continue and that it has granted a potential partner a period of exclusivity in order to conclude contractual negotiations.

Shares at 0820 GMT were up 0.50 pence, or 8.5%, at 6.38 pence.



Write to Ian Walker at [e-mail]; @IanWalk40289749



(END) Dow Jones Newswires

December 28, 2017 03:45 ET (08:45 GMT)

[florenceorbis] 27/12/2017 07:28

TOTAL: The downtrend can resume
TEC on 25/12/2017 at 07:54
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TOTAL: The downtrend can resume

SYNTHESIS

The MACD is negative and below its signal line. This configuration degrades the outlook on the title. The RSI does not yet indicate an oversold so the further decline is technically possible. Stochastic indicators do not give clear signals for the coming days. The traded volumes are below average volumes over the last 10 days.

MOVEMENTS AND LEVELS

The bullish movement seems to be stopped. The stock is below its 50-day moving average at 46.58 EUR. The first support is 44.75 EUR, then 44.11 EUR and the resistance is 47.94 EUR, then 48.89 EUR.
Last class: 46.47
Support: 44.75 / 44.11
Resistance: 47.94 / 48.89
Short term opinion: negative
Medium term opinion: neutral

[waldron] 22/12/2017 16:04

Interview: Total Marine Fuels gears up for IMO 2020 rule, eyes LNG bunker fuel growth

Singapore (Platts)--21 Dec 2017 1014 pm EST/314 GMT

Global bunker supplier and trader Total Marine Fuels Global Solutions is gearing up for the International Maritime Organization's 2020 global sulfur cap rule for marine fuels, with LNG emerging as a key bunker fuel solution for some of its customers, Managing Director Olivier Jouny told S&P Global Platts in an interview last week.

He added that "2020 is a real date, and there will be no way to escape it. We believe there is no one solution. It will vary from customer to customer, depending on a variety of factors, including the type of fleet, areas where shipowners are operating, whether they are looking for a solution for newbuilds or existing fleet."

Total Marine Fuels Global Solutions, for its part, is already working with its other entities -- refineries, trading, logistics, research and development -- to come up with 2020-compliant marine fuel solutions, Jouny said.

The company will provide three main options -- 0.5% sulfur compliant fuels, HSFO with scrubbers and LNG bunkering -- to its customers. However, with regards to 0.5% sulfur fuels, it is too early to give an exact recipe, Jouny said.

"Total also has a large track record in adapting its refineries to the evolving fuel oil mix, as illustrated by the very recent upgrade of the Antwerp integrated refining and petrochemicals platform," Jouny said.

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The plethora of blended and new fuel formulations that will emerge, is also likely to lead to issues around stability and compatibility of the fuels.

"Compatibility and stability among the various blends are definitely an area of concern globally. We, along with our R&D centers, are looking at what's a good blend. We are presently carrying out some laboratory tests; we will go in for trials in 2018 with our key customers to ensure we are prepared for 2020," Jouny said.

LNG BUNKERING

"We want to be a major player in the LNG bunker market. Our market share in the LNG bunker market will be definitely bigger than that in our conventional marine fuel business," Jouny said, adding that the LNG bunkering market was growing very rapidly.

He estimated that the global demand for LNG as a marine fuel would touch 1 million-1.5 million mt by 2020 and reach about 20 million-30 million mt by 2030, from the current figure of less than 500,000 mt.

LNG bunkering will be particularly attractive for certain segments of the shipping markets -- such as newbuilds and for vessels such as ferries, cruise ships and containers which traverse fixed routes, Jouny said, adding that the predominant areas for LNG bunkering will be ports in Asia and Europe, where LNG bunkering infrastructure is either already present or is developing.

Global capital expenditure, financial constraints, access to LNG, and the need for in-depth technical expertise will restrict the number of players in this space.

"We have an advantage, as we are in both bunkering and LNG, and can definitely be a dominant LNG bunker player," he said.

The company has reached a significant milestone in this regard. Earlier this month, Total announced that it had signed a strategic agreement with CMA CGM to provide LNG to fuel the French shipping group's nine newbuild ultra-large container vessels.

The new agreement covers the supply of about 300,000 mt/year of LNG for 10 years starting 2020, illustrating a huge uptake in the potential of LNG as a marine fuel.

As part of the agreement, the company also plans to charter an LNG bunker tanker.

"We have entered into a consultation with a number of shipowners and we have to take a decision quite soon," Jouny told Platts.

Four key elements to consider:


the vessel should be 18,000 cu m or more so that LNG bunkering can take place in one stem;
it should be highly maneuverable to serve high traffic areas and congested ports;
it should meet high safety standards; and
it should be in line with environmental standards to ensure there is no gas flaring during routine bunkering operations.


In addition to the CMA CGM deal in July, TMFGS also signed an agreement with Brittany Ferries to supply LNG to its vessel, the Honfleur, in the port of Ouistreham, France.

To address the lack of LNG infrastructure in the ports served by the Honfleur, TMFGS partnered with two other French companies -- Dunkerque LNG and Groupe Charles Andre -- to implement a supply chain solution using ISO containers for LNG bunkering.

The company also inked a deal with Singapore's Pavilion Gas to co-operate on LNG bunkering in the city-port. Under the agreement, Pavilion Gas, a wholly owned subsidiary of Pavilion Energy, will supply LNG as a bunker fuel to TMFGS, according to a statement released in April.

COMPLIANCE TO IMO 2020

While TMFGS is preparing for 2020, it is also cautious about the enforcement of the upcoming rule as 100% compliance will be difficult to achieve, Jouny said.

A report by OPEC in November, for example, said that just 60% of bunker demand will be compliant with the sulfur limit in 2020.

"We do believe that our customers, who are also some of the big names, are going to fulfill the requirements [of the rule]. However, if there is no signal from the market that enforcement is compulsory, smaller shipowners may not comply, meaning that there will no longer be a level playing field," Jouny said.

"The 2020 global sulfur cap rule is a major change for the industry and it should be respected. Our commitment is to be transparent and we will support any initiative [as a supplier] required to support enforcement," he added.

In February 2018, the IMO is expected to discuss a proposal made by the International Bunker Industry Association to introduce a ban on the carriage of HSFO as bunkers on ships without scrubbers.

If this proposal is accepted and enforced globally, TMFGS, who is also an IBIA member, will definitely support it, Jouny said.

-- Surabhi Sahu, [e-mail]

-- Edited by Geetha Narayanasamy, [e-mail]

[grupo] 20/12/2017 11:18

Total: At the vanguard of local content, partnership in Nigeria’s oil sector
December 20, 2017

Dapo Falade Energy

Since the discovery of oil in large commercial quantity in Oloibiri, now in Bayelsa State in 1956, the black gold (as crude is commonly called) and the oil industry has continued to play a vital role, making significant contributions to the Nigerian economy.

An umbrella body uniting the oil companies, major players and other critical stakeholders in the oil sector is the Nigerian Association of Petroleum Explorationists (NAPE). The association has, over the years, is holding its Annual International Conference and Exhibition (AICE), where the operators and other stakeholders in the industry converge to rub minds and share ideas on how to further move the industry forward.

Giving his inaugural speech on assumption of office as NAPE President in 2016, Abiodun Adesanya, said: “the future of the association demands that we seek new knowledge to meet new problems and challenges, especially in this current dispensation of national and global recession.”

He said it has become expedient for NAPE to seek for new cooperation, partnerships and collaborations with other relevant stakeholders, including professional associations, government, industry and the academia.

Leveraging on the challenge posed by Adesanya (now the former president, having been succeeded by Andrew Ejayerise), NAPE adopted ‘A Roadmap for Nigeria’s oil and Gas in a Diversifying Economy’ as its theme for the 35th AICE, held recently at the Eko Hotel and Suites, Victoria Island, Lagos.

The four-day conference was attended by major players and ontical stakeholders.

The AICE 2017 was opened with a pre-conference workshop on November 9, with the theme ‘Transforming Nigeria’s Oil and Gas Industry to Meet Global Demand-Supply Realities. It had in attendance distinguished explorationists, managers and investors within and outside the oil and gas sector who gathered to brainstorm on the current state of the industry and to chart the way forward.

Among the major players in the oil sector is the Total Exploration and Production Nigeria Limited (TEPNG). For 55 years, the company has been actively involved in the whole value chain of the oil and gas, serving the country’s hydrocarbons industry, in partnership with the Nigerian government and in different equity associations with other private companies. It has abroad and diversified portfolio in the country, with activities spanning onshore, conventional offshore, deep water and Liquefied Natural Gas (LNG).

As a major oil and gas company in the country, Total has been one of the sponsors of the NAPE conferences over the years.

Speaking at the pre-conference, the Managing Director/Chief Executive, TEPNG, Nicolas Terraz, stressed the need for the understanding of the role operators of the industry, especially since diversification remains the only option for economic growth and development.

The challenging operating environment notwithstanding, the TEPNG MD/CEO said the company is committed to investing in the country, believing that “when Nigeria prospers, Total also prospers. Today, reference is being made to us as the industry benchmark for the Nigerian content, given our significant investment in local capacity development through our Ofon2 and Egina projects. Egina has the highest deep water local content ever in Nigeria.

The Egina field was discovered by Total Upstream Nigeria Limited (TUPNI) in 2003, within the Oil Mining Licence 130 (OML130), some 200 kilometres south of Port Harcourt. The field is being developed by Total Upstream Nigeria Ltd in partnership with NNPC, CNOOC, SAPETRO and PETROBRAS. It will add 200,000 barrels per day to Nigeria’s oil production (approximately 10 percent of the country’s total oil production).

Egina is the largest investment project currently ongoing in the oil and gas sector in Nigeria. The overall progress of the project stands at 88 percent and a key milestone was achieved on October 31, 2017, as the Floating, Production, Storage and Offloading unit (FPSO) started its journey to Nigeria. The project is expected to be completed in Q4 – 2018, within the initial budget of $16 billion.

Being the first major deepwater development project launched after the enactment of the Nigerian Oil & Gas Industry Content Development (NOGICD) Act of 2010, Egina has the highest level of local content of any such project in Nigeria.

“Among others, the development of SHI-MCI Yard on LADOL Island and significant work on seven Nigerian fabrication yards of various project scopes will continue to generate direct employment and indirect businesses for Nigerians throughout the life of the project. This is evident in the engagement of local contractors, investment in human capacity development and contribution to building and expanding local fabrication yards.

“Over four million man-hours of fabrication works for the FPSO were executed in Nigeria with a safety record of zero fatal accidents. Five Nigerian construction yards: EWT and Ponticelli in Port Harcourt; Nigerdock, Dormanlong and SHI-MCI in Lagos were engaged for fabrication of various FSPO structures, including the six Topside Modules to be integrated on the FSPO at SHI-MCI Yard.

“In addition to the ongoing projects, Total is intensifying a lot of efforts on exploration and appraisal activities with two operated Exploration and appraisal wells planned for this year; one in the conventional offshores and with the drilling of the second one in the deep offshore almost finalised and with the results in line with prognoses. Our plan is to maintain aggressive and appraisal wells drilling in order to play our part in increasing the hydrocarbon resource base of the nation,” Terraz said.

The Total MD/CEO also spoke on the partnership of Total with other critical operators in the industry as he disclosed that, in 2016, the NNPC-Total E&P Nigeria Limited Joint Venture commenced the supply of gas to the Alaoji Power Plant in Abia State. This, he said, became possible after the completion and start-up of the Obite-Ubeta-Rumuji Pipeline and the Northern Option Pipeline projects by the NNPC/TEPNG JV in August 2016.

“The completion of these pipelines is an important milestone in the activities of Total in Nigeria. The NOPL is unique and strategic in meeting the Federal Government’s objectives of gas supply to the domestic market,” he added.

As a corporate citizen of Nigeria, the management of Total is not oblivious of the fact that the status comes with certain responsibilities, not just to the company’s host communities, but also to the entire country as a whole. Towards this end, Total’s Managing Director/Chief Executive re-affirmed that the company shall continue to assist the authorities in providing infrastructure and access to quality healthcare and education to Nigerians and the communities that host our operations.

Many speakers at the third technical session of the NAPE Conference spoke on “Application of New Technologies to Exploration in Africa. They agreed that the industry is lagging behind in terms of the needed technology for exploration and production.

To improve on exploration successes in Nigeria, it was agreed that the operators should join the rest of the world by leveraging on advances in seismic acquisition and digitalisation.

Among the speakers at the third technical session was the General Manager, Exploration, Total, Chris Enuma, who painted a gloomy picture declaring that there were no more giant discoveries as there has been a drastic decline in exploration activities in Nigeria since 2006 due, not only to financial ability but also to lack of the technological wherewithal.

He said the decline in giant exploration discoveries was as a result of dealing with very complex geology that needs to be properly understood before drilling, adding that the conventional technologies, in most cases, have reached their limits, in terms of subsurface imaging.

However, Enuma did not stop at only identifying the problems facing the oil industry, especially in the area of exploration, but also proffered some solutions as well. According to him, the development and application of new technologies have become imperative and inevitable in order to be able to drill material prospects.

He disclosed that Total is collaborating with ExxonMobil, Shell and a university based in Texas, US to mitigate the environmental objections to seismic surveying, even as he called for collaboration between International Oil Companies (IOCs) as key to achieving needed new technologies for contemporary explorations.

“Collaboration between IOCs and contractor companies will go a long way and even foster the attempts and efforts at developing new technologies for the required exploration success. All African national oil companies are encouraged to be part of the new technological innovation,” Enuma added.

[the grumpy old men] 19/12/2017 17:51

Total launches large-scale development of giant Libra field
12/19/2017

PARIS -- Total announces that it has taken the investment decision for the first large-scale development phase of the Libra project, located deep offshore, 180 km off the coast of Rio de Janeiro, in the pre-salt area of the Santos basin in Brazil.
This phase, consisting of a floating production storage and offloading (FPSO) unit with a production capacity of 150,000 bopd and 17 wells, will be deployed in the Northwestern part of the block.

First oil started flowing from Libra field in November with the start-up of the Pioneiro de Libra, a 50,000-bpd FPSO early production phase to further appraise the field and generate early revenue. As the next step in the field development, the new “Mero 1” FPSO is expected to come on stream in 2021. In the coming years, this development will continue with the addition of at least three other FPSO’s to fully exploit the potential of the field, with a production that should reach more than 600,000 bpd.

The Libra Consortium is led by Petrobras (40%) in partnership with Total (20%), Shell (20%), CNOOC Limited (10%) and CNPC (10%). Pré-Sal Petróleo (PPSA) manages the Libra Production Sharing Contract.