When disruption generates opportunities Arnaud Breuillac President Exploration & Production, Total 2017 General Electric Company - All rights reserved
Our Environment is Shaped by Several Disruptions Supply shock, with shale revolution providing abundant resources Oil price volatility Uncertainties on demand growth sustainability Impact of digitalization on industry efficiency World political instability O&G INDUSTRY Target zero accidents, no tolerance for environmental incidents Importance of new players LNG bubble New market mechanism Higher expectations towards sustainable growth, including climate change 18 th GE Oil & Gas Annual Meeting - January 2017 - Arnaud Breuillac 2
TACKLING SHORT-TERM DISRUPTIONS 3
Improving Operational Performance & Reducing OPEX Production efficiency* operated assets % Operating costs (ASC932) $/boe ~4% 9.9-50% 7.4 ~6 ~5 * Actual production divided by capacity 4
Lowering Investments to a More Balanced Level Reducing Capex B$* West Africa deep offshore drilling Non-productive time % 26 23-40% 17.8-25% 18-19 16.0 15-17 13.4 2014 2015 2016 2017-20 2014 2015 2016 YTD *Group Capex 5
Strong Production Growth Average Growth of 5% per Year 2014-2020 Production Mboe/d +5% per year 2014-20 +1-2% per year post-2020 9 start-ups in 2015 +9% >4% 5 projects started up in 2016 >10 projects under construction ~50% of production from long plateau in 2020 6
POSITIONING FOR THE MEDIUM TERM 7
Integrating 2 C Roadmap into our Group Strategy Gradually Decreasing the Carbon Intensity of our Production Mix Areas of focus to reduce CO2 emissions Bt CO2 Renewable energies Energy efficiency Optimized energy mix Focusing on oil projects with low breakevens Prioritizing gas projects Exiting coal business Growing in renewables and low-carbon business Source: IEA (2015), Energy Technologies Perspectives 2015 8
Oil, Positioning Upstream on Low Cost Assets Managing the Portfolio to Reduce Breakeven Adding low cost assets Reducing exposure on high cost assets Al-Shaheen Qatar, Total 30%, 90 kb/d* Giant conventional offshore oil field ADCO UAE, Total 10%, 160 kb/d* Giant onshore oil fields Santos basin, Brazil >100 kb/d* Libra, Total 20%, Giant deep offshore oil field Lapa, Total (Op.) 35%, Iara, Total 22.5% High-quality pre-salt licenses Fort Hills Canada, oil sands 10% divested in 2015 Marginal fields North Sea, Africa Mature offshore oil fields * Plateau production, Total share (SEC) 9
Gas, Growing Integrated Upstream Diversified Portfolio of Gas Developments Yamal LNG Russia, Total 20%, 130 kboe/d* West of Shetlands UK, Total 60%, 50 kboe/d* Ichthys LNG Australia, Total 30%, 110 kboe/d* Barnett United States, Total 100%, 80 kboe/d* * Plateau production, Total share (SEC) 10
PREPARING FOR THE FUTURE 11
The Future is Now Innovation Means Adapting to Change RAID, Digital at the service of performance ARGOS, R&D robotic challenge Remote assistance intervention and diagnosis +270 malfunctions identified on vital equipment since its creation 35,000 remote monitoring sensors to be installed by 2018 Creating the first autonomous robot for O&G site 5 international teams selected from 30+ projects 3 competitions scheduled between June 2015 and March 2017 12
Our Ambition at 20-Year Horizon O&G industry faces major challenges in the coming 20 years: Meet the energy needs of a growing world population in which, today 1.3 billion people have limited or no access to energy Address climate change Understand and adapt to customers use and relationship to energy At Total, we will respond by providing Reliable, Affordable, and Clean Energy over the long run. 13
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