OIL COUNCIL, AFRICA ASSEMBLY COOPERATE, ADAPT, GROW JUNE 24, 2015 GUY MAURICE PRESIDENT, TOTAL E&P AFRICA

Transcription

1 OIL COUNCIL, AFRICA ASSEMBLY COOPERATE, ADAPT, GROW JUNE 24, 2015 GUY MAURICE PRESIDENT, TOTAL E&P AFRICA

2 OUR ENVIRONMENT IS CHANGING DRAMATICALLY Resources abundant but increasingly difficult to develop Oil prices volatility No tolerance for accidents and environmental impacts High cost environment eroding profitability O&G INDUSTRY Higher expectations towards acceptability of O&G operations Strong human resources competition & local content requirements World political instability Importance of new players 2

3 STRONG HISTORICAL PRESENCE STRENGTHENING RELATIONS WITH PARTNERS s 1970 s - 80 s Start of onshore exploration Gabon (1928) Cameroon (1946) 1956 Onshore discoveries and first productions Angola (1956) Algeria (1956) Gabon (1956) Nigeria (1966) 1962 First offshore developments Gabon, Congo, Libya, Angola, Nigeria 1995 First discoveries and first developments in deep and very deep offshore Congo: Moho (discovery 1995, start-up 2008) Angola: Block 17 (discovery 1996, start-up Girassol 2001, Dalia 2006, Pazflor 2011) 2013 New frontiers for exploration Mauritania, Egypt, Ivory Coast, DR Congo Uganda, Kenya, South Africa, Mozambique Presalt Angola Nigeria: Akpo (discovery 2000, start-up 2009) Usan (discovery 2002, startup 2012)

4 REDUCING CAPEX AND OPEX WORLDWIDE 2015 Upstream Capex discipline Billion $ 2015 Upstream Opex reduction Billion $ 23 B$ Greenfield 0.8 B$ Brownfield ~20 B$ Growth Initial New Reduction Reducing greenfield investment Utica, Zinia 2, Bonga SW Doubling 2015 Opex reduction Reducing staff to ~15,500 end-2015, logistics Cutting marginal brownfield spend Mature West Africa, North Sea... Taking advantage of market conditions Renegotiating contracts, service costs Immediate and significant adaptation to 2015 environment 4

5 DEEP OFFSHORE, BUILDING ON A CORE COMPETENCE Elevated project IRRs Total-operated projects* 30% Leading position among Majors >10% of Total s production, >25% of Upstream results in 2014 High tech and high return projects Total to operate 10 FPSOs with ~1.7 Mb/d capacity by Peak production (kb/d) Deep offshore production Mboe/d, Total share CLOV delivered on time and on budget in 2014 Ramp-up achieved ahead of schedule Innovative subsea separation ~1 B$ cash flow in 2015 at 70 $/b Libra EWT Kaombo Egina Moho Nord Laggan CLOV Pazflor Akpo Girassol Dalia 20% stake in Libra Largest discovery in deep offshore Appraisal and testing program ongoing First oil in 2017 with EWT * Source Wood Mackenzie, Brent 90 $/b Under development in 2015 Reinforcing an industry leading position

6 BUILDING MOMENTUM OF CASH ACCRETIVE START-UPS New start-ups contribution to 2017 production* By start-up year 600 kboe/d 2017 Start-ups contributing to 2017 production % EPC progress of major start-ups CLOV Eldfisk 2 Ofon 2 0% 50% 100% Start-up June 2014 Jan 2015 Jan kboe/d 2015 West Franklin 2 Termokarstovoye Jan Q Share of non-producing assets in Upstream capital employed Laggan-Tormore GLNG Surmont 2 Vega Pleyade 3Q H H H % 2015 ~30% Ichthys Incahuasi Martin Linge Moho Nord Egina 2017 Kaombo * Excluding Kashagan and Angola LNG Progress since Feb 2014

7 RENEWING LONG TERM RESOURCES Exploration Resource acquisition 2014 main successful wells 2015 main wells Capping exploration budget 2015 budget reduced by 30% to 1.9 B$ More selectivity to increase efficiency Ongoing strategic review Lessons learned from past 3 years 2.5 Bboe added at <3 $/boe over Successful entry into new ADCO contract 40 years of production with plateau at 1.8 Mb/d 10% equity interest with higher margins 1st among Majors, low entry cost Screening new opportunities with strict discipline

8 INCREASING UPSTREAM PROFITABILITY Safety Cornerstone of our strategy Delivery Executing projects on time and on budget Growing production with major project start-ups Costs Increasing Opex savings Enhancing capital discipline Cash Strong cash flow growth driven by accretive start-ups Dynamic portfolio management Accountability key to unlocking performance 8

9 TOTAL, A LEADER IN AFRICA Total production in Africa kboe/d Largest producer in sub-saharan Africa Largest marketer in Africa, 18% market share % Gabon Congo Angola Nigeria Total activities in Africa #1 deep offshore operator, 3 new FPSOs to start -17 Increasing production by 25% % profitability, ~40% of M&S results Leveraging critical mass to capture African growth Upstream production Deep offshore Downstream Under development Proven expertise in growth-driven continent