and to sanction projects thanks to 30% freefall in costs

摘要

Total said continuously falling upstream development costs will enable it to keep to its promise of cutting capex but increasing output. The company expects to spend up to US $19 Bn this year and up to $17 Bn in 2017 but still expects to grow output by up to 2% by 2020. "We have reduced the guidance as our teams continue to look to ways of simplifying and going for simpler designs," said chief executive officer Patrick Pouyanne. "The other part of course is the market. Last year it was based on a 20% discount, in fact today what the market is giving us is 30%. We believe we will be able to sanction projects in front of us in order to capture this deflation. This is the strategy we want to follow for our new projects," he added.