The current low oil price environment is an opportunity for oil and gas major Total SA (TOT) to realign its costs, drive efficiency in upstream operations and rediscuss tax issues with host producing nations, its chief executive told investors.
Patrick Pouyanne spoke with investors in Geneva on Oct. 2, Raymond James Europe Research said in its note.
"As regards mergers and acquisition (M&A) opportunities, the group is keen on capitalizing on its strength [Africa, Middle East, North Sea, Deepwater, LNG] rather than looking for U.S. shale oil opportunities," the note said.
"Total sees more opportunities in Iran on the LNG side than in conventional oil developments," the note said, adding that oil sands are not well placed on the merit curve and Total could sell further positions.
The group has said it is cutting its exposure to Canadian oil sands projects in the context of lower global oil prices after it sold 10% of its stake Alberta oil sands project to Canada's Suncor Energy Inc. (SU).
Total was not immediately available to comment.
Total put the protection of its dividend at the center of its strategy last month, as it set out reduced investment plans and increased cost cuts in preparation for an extended period of depressed oil prices.
Recommended Reading
ONEOK CEO: ‘Huge Competitive Advantage’ to Upping Permian NGL Capacity
2024-03-27 - ONEOK is getting deeper into refined products and adding new crude pipelines through an $18.8 billion acquisition of Magellan Midstream. But the Tulsa company aims to capitalize on NGL output growth with expansion projects in the Permian and Rockies.
As ONEOK Digests Magellan, Sets Stage for More NGL Growth in 2024
2024-02-28 - ONEOK is continuing the integration of its newly acquired Magellan assets in 2024 as the company keeps an eye out for M&A opportunities and awaits regulatory approvals for certain projects.
Making Bank: Top 10 Oil and Gas Dealmakers in North America
2024-02-29 - MergerLinks ranks the key dealmakers behind the U.S. biggest M&A transactions of 2023.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
US Proposes Second GoM Wind Lease Auction
2024-03-20 - Combined, the four proposed areas for offshore wind have the potential to power about 1.2 million homes if developed, according to the Interior Department.