French gas and oil giant Total reported a 56 percent jump in its adjusted net income during the first three months of 2017.
According to the company’s quarterly report, the adjusted net profit reached US$2.6 billion compared to $1.6 billion in the corresponding period in 2016.
Commenting on the results, Total’s chairman and CEO Patrick Pouyanne said, “Brent prices remained volatile in the context of high inventories and averaged $54 per barrel this quarter.”
However, he added that the rise in profit is due to good operational performance and a “steadily decreasing breakeven.”
Hydrocarbon production was up 4 percent reaching 2.57 billion barrels of oil equivalent per day during the quarter under review, mostly due to project ramp-ups, “notably Kashagan, Laggan-Tormore, Surmont, Incahuasi and Angola LNG.”
LNG sales jump
Paris-based Total posted an increase of 11 percent in its first-quarter liquefied natural gas (LNG) sales.
Total said it sold 2.98 million mt of chilled gas in the quarter, as compared to 2.69 million mt in the same period in 2016.
Argentinian shale gas development
Total said it has sanctioned the development of the first phase of the operated Aguada Pichana Este license in the giant Vaca Muerta shale play in Argentina.
In addition, the company intends to increase its interest in the license from 27.27 percent to 41 percent.
Gas production from the project will be treated at the existing Aguada Pichana gas plant which will thus reach its full capacity of 16 million cubic meters per day (100,000 barrels equivalent per day).
As part of the project, the Aguada Pichana partners (Total Austral 27.27 percent, YPF 27.27 percent, Wintershall Energia 27.27 percent and Panamerican Energy 18.18 percent) have entered into a memorandum of understanding that includes an increase of Total’s participation to 41 percent in the Aguada Pichana Este project being developed.
LNG World News Staff