Total Still Cautious | Russell T. Rudy Energy LLC
Patrick de La Chevardiere, Chief Financial Officer of French oil giant Total SA, thinks that potential acquisitions are still too expensive, according to a recent article in “Rigzone”. Many industry observers predicted a wave of consolidation deals after Shell announced its merger with British Gas. However, La Chevardiere feels that the price Shell paid was quite high. He told an interviewer with Bloomberg TV that “The opportunities will really come if oil prices remain low over a longer period. Then you will see real opportunities for major companies like Total.”
La Chevardiere thinks that Saudi Arabia’s reaction to the lifting of sanctions against Iran will be a key development. Should Iranian oil come on stream and the Saudis maintain current production levels, prices could drop significantly. He went on to say that Total plans to move into Iran as soon as sanctions are lifted. The company had a project underway there prior to sanctions, and is ready to resume operations as soon as they are lifted.
To read the article in its entirety, please go to http://www.rigzone.com/news/oil_gas/a/138332/Total .
