Senior officials of oil giant Total, have predicted strong growth for the company during a presentation to investors.
In their presentations, chairman and CEO Patrick Pouyanne and CFO Patrick de La Chevardière said that over the past three years the company had delivered on its objectives of production growth, cost reduction, capital discipline, and asset sales.
They now expect further production growth of 6-7percent through 2020, with $15-17 billion/yr of capital investment over the same period, and are targeting opex reduction of $5 billion/yr by 2020 compared to the 2014 base (up from $3.7 billion in 2017).
Since 2015, the company has acquired more than 7 Bboe of low breakeven resources at a cost of less than $2.5/boe, they added, representing 25percent of its upstream portfolio.
This includes various major projects that will be sanctioned by 2020, adding over 700,000 boe/d to the company’s production, and contributing to a 5percent average growth from 2017 to 2022.
In addition, they added, Total has a series of short-cycle projects in prospect such as deepwater tiebacks and infill drilling that can be developed for under $7/boe, offering strong returns and quick payback.