Total slashes capex

LONDON, September 22, 2016 – Total CEO and Chairman Patrick Pouyanné on Thursday presented the company’s strategy and outlook for the coming period, announcing lower capital expenditure (capex) from 2017 onwards.

Speaking in London, Pouyanné said Total would target yearly capex at a level of USD 15-17 billion through 2020, a reduction of USD 2 billion compared with the company’s previous guidance. By 2018, it hopes to have realised savings in operational expenditures between USD 3 billion and USD 4 billion. Finally, Total strives to maintain an annual production growth of 5% over the next four years.

Elaborating on the company’s strategy, Pouyanné said Total would emphasise expanding its operations along the gas value chain and work to reduce its cash flow breakeven of its oil operations, both in the upstream and downstream segments.