Elgin Restart Helps Deliver Robust 2Q for Total
The restart of production from the Elgin/Franklin field in the UK North Sea, as well as increased production from new projects, helped French super major Total offset a decline in energy prices to post a robust result for the second quarter.
In its statement for 2Q 2013 Total CEO Christophe de Margerie said that group demonstrated "strong resilience" in its Upstream business in spite of lower hydrocarbon prices. Total registered a decline in its 2Q adjusted net income of just one percent to $3.5 billion, though its income result for the first half as a whole came in four percent lower at $7.3 billion.
Total's 2Q 2013 production was 2.29 million barrels of oil equivalent per day, which was up one percent on that for 2Q 2012. Production saw a boost from the restart of production from its North Sea Elgin/Franklin field, which had been shut since March last year after a major gas leak, as well as from its Ibewa field in Nigeria.
"The restart of production at Elgin/Franklin in the UK and the first cargo from Angola LNG were notable events of the quarter," de Margerie said.
Total said that for the remainder of 2013 it will focus on executing its major projects. In its Upstream business expects to see first oil from the giant Kashagan project in Kazakhstan, as well as benefit from gas and liquids production from the extension of its OML 58 block in Nigeria.
In addition, following the launch of two new deep-offshore projects in 2013, Moho Nord in Congo and Egina in Nigeria, the group is looking at the potential launch of two additional major projects before the end of 2013. These are the long-plateau projects of Yamal LMG in Russia and the Fort Hills oil sands project in Canada.
"Regarding our Upstream projects, the launch of the Egina deep-offshore project and the progress on Yamal LNG illustrate our ability to prepare for the future in a sustainable manner by developing competitive and diverse projects. In this way, the group expects to benefit from an extended series of start-ups over the next several years," de Margerie added.
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