Total launches asset sale program

LONDON — French oil giant Total SA has announced a $15 billion - $20 billion asset sale program over 2012-14, according to RTT News, reinforcing the degree to which active portfolio management is integrated into its strategy. Also, the company anticipates that the ongoing restructuring of its Refining & Chemicals division will provide an additional $650 million per year of net results by 2015 through improved efficiencies and synergies, the report says.

Over 2011-15, targeted production growth by Total of nearly 3% per year on average is based on projects which are already either in production or under development. For 2017, based on its portfolio of high-quality projects, Total sees production potential of about 3 Mboe/d, noting that 70% of the new production needed to achieve this growth is already in production or under development.

According to the company, free cash flow in 2012-14 would be enhanced by contributions from accretive start-ups, downstream restructuring and the announced asset sale program. Accelerating free cash flow growth is expected during the 2015-17 period. At the end of second quarter 2012, Total reported an increase of 3.5% to its quarterly dividend.