2012-10-24 15:51:48 - Total S.A., Company Intelligence Report - a new company profile report on companiesandmarkets.com

Total´s overall production declined with a CAGR of -0.8% during 2007–2011, primarily due to a natural decline and asset divestments, coupled with other political issues in Middle Eastern countries, such as Libya. However, the company plans to increase its production by developing upcoming projects to offset decline from mature assets. In line with this objective, it has been investing heavily in the exploration and development projects, thereby maintaining a strategic mix of legacy/ upcoming assets and managing the company´s production volumes. Moreover, Total expanded its presence across multiple geographies and gained access to enhanced technical capabilities through several acquisitions and partnerships. All these factors are expected to strengthen the company´s upstream operations and bring upside in its cash flows in

 

 

the long run.

The E&P capex increased by 72.1% to nearly $30.2 billion in 2011, compared to $17.5 billion in 2010. A total capex of around $47.7 billion towards its upstream segment was invested in 2010–2011, which was spent in organic and inorganic activities. It added a resource base of nearly 3.6 billion barrels of oil equivalent (Bboe) in 2011. Major strategic acquisitions in 2010–2011 included the Fort Hills heavy oil project in Canada, a stake in Novatek, a joint venture (JV) with Chesapeake for the Barnett and Utica shale in the US, exploration assets in Uganda and the Gladstone LNG (GLNG) project in Australia. All of these acquisitions carry strategic significance to ultimately boost oil & gas production. The company´s Canadian Fort Hills heavy oil project is expected to increase its exposure to heavy oil operations in the North American markets, allowing it to benefit from high oil prices. The acquisition of a stake in Novatek will help to tap into Russian gas markets.

The company´s entry in the Barnett and Utica shale is anticipated to provide unconventional technical expertise, while the GLNG project in Australia will expand its presence in the LNG markets. As a result of this, Total has created new growth poles, which will bring upside in its production, offsetting the decline in legacy assets and improving future cash flows. The company has allocated nearly $24 billion towards its upstream operations in 2012, which represents nearly 80% of total capex in the year; nearly 70% of its 2012 E&P capex will be invested in the developments projects with a remaining 30% allocated to legacy assets. Higher capex allocation will help to accelerate exploration and development activities in the near future. Currently, it has nearly 35 major upcoming projects, which are expected to add production during 2012–2018.

Its major upcoming projects in 2012 include the Halfaya Project, Kashagan Phase 1, the Usan project, Angola LNG project, Anguille field redevelopment project, OML 58 Upgrade and the Utica shale project. Together, all of these projects are expected to contribute 35.7 MMboe towards overall production in 2012, which represents 4.3% of its total production in the year.

Halfaya project is the major driver for the company´s upcoming production in the near future. This project started production in June 2012 and is expected to contribute11 MMboe towards the company´s total production in 2012. The Kashagan Phase 1 project is another major upcoming driver for production and is expected to add total net production of 5.5 MMboe in 2012. This project has net peak production capacity of 18.4 MMboe/year. The Kashagan project is a multi-phased project and is located in Kazakhstan. Production addition from 2012 is expected to come from the first phase of this project. The Usan project started producing in Q1 2012 and is expected to add a production net total of 2.6 MMboe in 2012. This project is expected to reach a peak production of 13.1 MMboe in 2014.

LNG production is expected to increase through the Angola LNG project, starting from 2012. Total holds 13.6% working interest (WI) in this project, which has a total production capacity of upto 8.7 MMboe/year. It is also involved in the redevelopment projects in the oil-rich Anguille field and the natural gas-rich OML 53 Block. Apart from these projects, Total plans to expand its unconventional shale production though the new production addition from the Utica shale in the US. Several other projects are also lined up to add production by 2015, which are expected to add production of nearly 600 thousand barrels of oil equivalent per day (Mboe/d). Due to this, its production is expected to grow with an average rate of 4.1% during 2012–2015. Nearly 10 more projects are lined up to start production during 2016–2018, which is expected to support production growth in the long run.

Total´s strong upcoming project portfolio and increased focus on upstream operations are expected to consistently add new production, which will offset the declining production from the legacy assets. However, in the near future, the company´s production is expected to be affected by several events that occurred recently, such as the gas leakage from the offshore G4 well in the Elgin/Franklin fields in the UK´s North Sea, the European Union´s sanctions on Syria and the supply disruptions in the Yemen. The Elgin/Franklin fields were expected to contribute nearly 53 Mboe/d towards total production in 2012, which represents nearly 2.4% of production in the year. The gas leak started on March 29, 2012 and since then production has closed. All of these factors are expected to hamper production growth in 2012, however, this loss of production will be offset by the new production from the upcoming projects; GlobalData expects the production to increase with a CAGR of 5.5% during 2012–2016.

Report Overview

Total S.A. (Total) is an integrated oil and gas company, involved in multiple businesses such as the exploration, development and production of crude oil, natural gas and liquefied natural gas (LNG), refining, marketing and the trading and shipping of crude oil and petroleum products. Total is also involved in power generation and renewable energy sectors and it holds equity stakes in coal mines. The company´s business is divided into three segments; upstream, refining & chemicals and supply & marketing.

The upstream segment includes exploration and production (E&P) operations, primarily located in Africa (Nigeria, Angola, the Republic of Congo, Gabon, Libya, Algeria and Cameroon), Asia/Far East (Australia, Indonesia, Myanmar, Thailand and Brunei), North America (Canada and the US), the Middle East (Qatar, United Arab Emirates (UAE), Yemen, Oman, Iran and Syria), South America (Venezuela, Argentina, Bolivia, Trinidad & Tobago and Colombia) and the Commonwealth of Independent States (CIS) (Kazakhstan, Azerbaijan and Russia). This segment also includes the gas and power division of the company, which handles the transport, trading and marketing activities for natural gas, LNG and electricity. Total is engaged in the shipping and trading of liquefied petroleum gas (LPG), production, trading and marketing of coal and generation of power from power plants based on natural gas/renewable energy. It is also involved in various research and development (R&D) activities for alternate energy sources, such as solar energy, biofuels, nuclear energy, energy storage, carbon capture/storage and gas technologies.

Scope

- Key Highlights: This section provides detailed analysis on the company´s overall oil and gas value chain, new projects, growth opportunities, new ventures, assets performance, hedging strategies, Capex funding, geographical results of oil and gas operations.
- Goals and Strategies: This section provides the upcoming goals and strategies of the company. The section mainly goals and strategies followed by the company in order to meet its upcoming goals.
- SWOT: The report´s SWOT section provides the internal strength, weakness, opportunities and threats of company to reflect its strategic positions in the market.
- Production and Development Overview: This section highlights the company´s crude oil and natural gas production forecast from its legacy and upcoming assets by region and commodity mix for next five years. The report also covers the detailed information and analysis on the company´s producing and development assets.
- Exploration: This section includes detailed explanation and analysis on the company´s exploration assets resulted due to new discoveries, new drilling and other activities.
- M&A trends: This section mainly provides information and analysis on the company´s recent assets transactions, joint ventures, acquisition, and divestment activities during the last one year. This section highlights the company´s status as a buyer or seller during the analyzed period.
- Financial Forecast and Valuation: This section highlights the detailed financial statement forecast for next five years. With the financial statement forecast, this section also provides intrinsic value of the company by using Net Asset Valuation method.
- Peer Group Analysis: This section compares the company´s performance with its peer group on the basis of share prices, financial ratios, operational and financial parameters and other related parameters.
- Financial and Operational Metrics: This section covers the company´s historical performance on several financial and operational parameters such as Production and Reserves, Reserves Replacement, Costs Incurred, Acreage, Wells, F&D Costs, Oil and Gas Revenue and Expenses etc.

Reasons to buy

The report will enhance the decision-making capability in a more rapid and time sensitive manner. It will allow you to:

- Provide detailed analysis to those who are interested in knowing the companies´ existing and future business strategies.
- Provide in-depth analysis on the companies E&P profiles along with the exploration and M&A updates.
- Provide valuable insights to those who are tracking oil and gas markets and wants to know the intrinsic value of the companies.
- Use the analysis for strategy and planning, M&A identifications, and competitor analysis.

Click for report details: www.companiesandmarkets.com/Market/Energy-and-Utilities/Company- ..

Browse all Energy and Utilities Company Profile Reports www.companiesandmarkets.com/Market/Energy-and-Utilities/Company- ..

Browse all Energy and Utilities Company Profile Reports www.companiesandmarkets.com/Market/Energy-and-Utilities/Company- ..

Browse all Latest Company Profile Reports www.companiesandmarkets.com/Market/All/Company-Profile?aCode=f3f ..

About Us
Companiesandmarkets.com is a leading online business information aggregator with over 300,000 market reports and company profiles available to our clients. Our extensive range of reports are sourced from the leading publishers of business information and provide clients with the widest range of information available. In terms of company profiles, Companiesandmarkets.com’s online database allows clients access to market and corporate information to over 100,000 different companies. We provide clients with a fully indexed database of information where clients can find specific market reports on their niche industry sectors of interest.