Integrated oil and gas company
) decided to sell a portion of its interest in Tempa Rossa Field,
located in the Basilicata region of southern Italy. TOTAL will
sell 25% of its interest in this field to Tokyo, Japan based
Mitsui & Co. Ltd.'s Italian subsidiary Mitsui E&P Italia
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Even with the disposal of a 25% interest in this field, TOTAL
will continue to be the operator with a 50% interest. Another 25%
ownership of this field is held by
Royal Dutch Shell plc.
). The entire reserve is estimated to be 440 million barrels of
oil equivalents (boe).
This project presently in the development stage is expected to
commence commercial operation from early 2016. The expected
production capacity per day is 50,000 barrels of oil, along with
230,000 cubic meters of natural gas and 240 metric tons of LPG.
The entire cost for developing this project is estimated in the
vicinity of $2.1 billion (€1.6 billion). TOTAL's new partner will
bear a portion of the development cost of the existing project.
We believe such strategic moves will unlock value from TOTAL's
existing asset base and increase financial flexibility.
The present divestment syncs in with TOTAL's asset disposal
strategy for the 2012-2014 period. TOTAL is a global oil and gas
major and continues to add, dispose and monetize properties to
become more competitive. In 2012, TOTAL disposed of assets worth
$5.9 billion (€4.6 billion), and has plans to divest more assets
TOTAL S.A. currently retains a Zacks Rank #2 (Buy). We also
prefer other Zacks #2 ranked stocks like
YPF Sociedad Anonima
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 spanning five