Total to Spend $2.8 Bln on Exploration in 2013

Total to Spend $2.8 Bln on Exploration in 2013

French oil major Total today announced the net investment budget for 2013 of $22 billion.  The exploration budget has been increased to 2.8 B$ for 2013, up from $2.5 billion in 2012.

The company said that the high-potential exploration program for 2013 reflects the new dynamic of the Group, with prospects to be drilled in Ivory Coast, Gabon, Kenya, and Brazil.

In the Upstream, Total confirms its production growth targets for 2015, 3% per year on average over the period 2011-2015, and for 2017, a potential of 3 Mboe/d, all based on improved visibility.

The supermajor reported net income for 2012 of 12.4 billion euros, an increase of 8% when compared to 2011. Total’s fourth quarter 2012 income was 4 billion euros, up 8% from the previous year.

Commenting on the results, Chairman and CEO Christophe de Margerie said: “In 2012, Total again delivered solid performance with net income of 12.4 billion euros and reinforced its strong financial position. The environment remained favorable in the Upstream, with Brent prices above 110 $/b and, in the Downstream, refining margins benefited from a temporary rebound at mid-year. With safety as the priority, the Group continues to progress towards its three main objectives. To successfully start-up projects, on time and in budget, for the Group’s profitable growth over the coming years”.

He added: “To rely on a recently expanded exploration portfolio for more significant discoveries. And, finally, to continue the restructuring of downstream activities for improved profitability and resilience in an evolving market. The Group has embarked on an important program of investments and asset sales to deliver value-creating growth, all while preserving a strong balance sheet, providing shareholder returns, and keeping its environmental and social commitments. It jjs thus with discipline, determination and optimism that the Group prepares for its future.”

Increased dividend

The Board of Directors of Total, led by Chairman and CEO Christophe de Margerie, met on February 12, 2013, and decided to propose at the Annual Shareholders Meeting on  May 17, 2013, a dividend of 2.34 €/share for 2012, an increase of approximately 3% compared to the previous year.

February 13, 2013