TOTAL VIEW THAT THE OIL PRICES WILL REMAIN LOW IN H1
PARIS (Reuters) – Total estimates that the oil price is expected to remain weak during the first half of 2015, said the general manager of the oil company French, Patrick Pouyanné, in an interview with France 2 aired Wednesday.
The oil price collapse has now reached about 60% since June 2014, under 50 dollars a barrel.
“I think frankly it will stay at low levels for the first half 2015,” said Patrick Pouyanné, interviewed at the Economic Forum in Davos.
“We’ll see It depends on many parameters, what will be the behavior of a number of major producing countries including, “he added, stressing that the oil drop was due to a combination of weak demand, due to the doldrums economic and energy savings, and oversupply, especially with US shale oil production.
“If it lasts, (…) it is good for economy (…), it means that the demand for petroleum products will go up, so one day or another the oil price will rise. ”
Patrick Pouyanné is Managing Director of Total since the death of Christophe de Margerie CEO in October in a plane crash.
The officer also told the Financial Times that Total planned to reduce by 10% its investments this year and accelerate its cost reductions to adapt to the sharp decline in oil prices.
Asked what the consequences of this decline for Total employees, Patrick Pouyanné told France 2 that it would create “not fewer jobs.”
“We are a big oil, so compared to smaller competitors we will suffer less (…), we know we can get through this kind of period of low water. “
” At the same time it is true that we have a ‘challenge’ because that means revenue and less, and therefore for employees that means the slogan is that we must control our costs (and) lower our breakeven point. “
Asked if, from the recent bombings in Paris, his group had stepped up security measures, especially in Muslim countries where it operates, Patrick Pouyanné spoke of “more sensitive than other countries,” such as Yemen.
“We have a factory that makes liquefied natural gas accounting for 40% of gross domestic product of Yemen, we have threats and we have obviously enhanced the safety device,” said he said.
“In practical terms, that means we have even mobilized military resources of the Yemen government to protect our facilities and also enhance the plant’s surveillance.”
The Secretary General of the United Nations Ban Ki-moon on Tuesday condemned the continuing violence in Yemen between Houthi Shiite militiamen and the Presidential Guard, calling for the immediate cessation of hostilities and the restoration of order in the capital Sana’a shaken in recent days by the fighting.
Total holds particularly in the countries participating 39.62% in the Yemen LNG liquefaction plant in Balhaf, on the southern coast of the country.
In exchange, Total shares gained 0.63% in early trading in Paris, outperforming the CAC 40 (0.27%).
(Benjamin Mallet, edited by Dominique Rodriguez )
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