French energy giant and LNG player Total intends to cut its Capex guidance by another US$2 billion from 2017 due to low and volatile oil and gas prices, according to its new outlook.
The company is looking to cut its Capex to $15 to $17 billion per year while growing production by an average rate of 5 percent per year from 2014 through to 2020, rather than 2019, according to the previous guidance.
Additionally, Total targets to cut its operational expenses from $3 billion in 2017 to $4 billion in 2018, with savings coming mostly from its upstream segment.
Total industry investment has plummeted from $700 billion in 2014 to $400 billion in 2016 due to the market conditions, Total’s chairman and CEO Patrick Pouyanné, said at the company’s Strategy and Outlook presentation in London.
However, the long-term outlook for gas and LNG remains favorable, he noted, saying the company sees the opportunity for robust gas and LNG projects beyond 2020.
In the medium term, Total intends to further expand its business along the full gas value chain.
LNG World News Staff