France’s Total announced it will sell $10 billion in assets and cut operating costs after slashing its oil output target Monday.
Total has not disclosed the assets that will go up for sale. The sales are expected to span from 2015 to 2017.
Total said the sales will cut the company’s operating costs by $2 billion by 2017.
Since 2010, Total has sold $30 billion in assets.
Total reduced its 2017 output target to 2.8 million barrels of oil equivalent per day from its previous goal of 3 million boepd due to production outages in Libya, Nigeria and Kazakhstan.
“We have more than 15 major projects to fuel the future growth … Two thirds of those projects are operated by us so that gives us confidence we will achieve the targets,” Total’s CFO Patrick de La Chevardiere said.
Total expects its Yamal LNG joint venture project in onshore Russia will not be affected by EU and U.S. sanctions against Russia, Reuters said.
Total is the operator of Yamal with a 20 percent stake. Russia’s Novatek owns the project and holds a 60 percent stake. China’s CNPC holds a 20 percent stake.
“We had meetings with EU authorities and they confirmed that onshore Arctic gas projects are not under sanctions,” de La Chevardiere said.
Total kept its earlier target to generate $15 billion cash in 2017 but reduced its 2015 goal to $7 billion down from $10 billion.