Integrated oil and gas company
) announced that its unit Total E&P Philippines B.V. acquired a
75% interest in the offshore Block SC56, located in the Sulu Sea,
from Mitra Energy (Philippines SC-56) Limited ("Mitra"). The
acquisition expanded TOTAL's footprint in the Asia-Pacific region
and conformed to its operational strategy of widening its presence
in new potential plays.
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The block covers a total area of around 1660.24 sq mile (4,300 sq
km), in water depths ranging from 656 ft to 9840 ft (200 meters to
3,000 meters). Mitra will retain a 25% interest in SC56. The
Malaysian partner will also be entrusted with the initial work of
re-processing of existing data and the 3D acquisition of an
additional 193 sq mile (500 sq km).
Although TOTAL did not divulge the financial consideration of the
deal, we expect the company to make full use of its strong
financial position. Cash and cash equivalents of TOTAL as of June
30, 2012, were $18.85 billion.
Asia-Pacific is one the fastest growing markets and has a
considerable potential for future growth. In July this year, the
company acquired an additional interest in the Ichthys liquefied
natural gas ("LNG") project from its Japanese partner INPEX
CORPORATION. The increasing demand for LNG in Asia has led TOTAL to
increase its stake in Ichthys. Earlier, in April, the company
started operations in the Greater Bongkot South (GBS) gas and
condensate field in the Gulf of Thailand, jointly with two other
Hydrocarbon production from the Asia-Pacific region during the
second quarter of 2012 averaged 213 thousand barrels of oil
equivalent (kboe) per day, decreasing 12% year over year while
liquids production during the quarter averaged 25 thousand barrels
(MBbls) per day, decreasing 11% year over year.
We believe these new initiatives undertaken lately will help TOTAL
to improve its production profile from this region. The Zacks
Consensus Estimate for the full year 2012 is $6.75 per share.
TOTAL S.A. currently retains a Zacks #3 Rank (short-term Hold
rating). Numbering among its competitors in the global arena is
France-based TOTAL is one of the largest publicly traded, globally
integrated oil and gas companies based on production volumes,
proved reserves and market capitalization. The company has
exploration and production operations across five continents.