French oil major Total reached record production in the first quarter of 2018, posting 5% growth year-over-year, despite the expiration of the Mahakam permit in Indonesia, Kallanish Energy reports.
The company’s oil and gas output reached 2.70 million barrels of oil-equivalent per day (MMBOE/d) during the January-March period, compared to 2.56 MMBOE/d a year earlier.
The growth was mainly due to a 14% increase in liquids production, which totaled 1.48 MMBOE/d in the quarter. Natural gas production was down 3%, at 6.66 million cubic feet per day (MMcf/d).
“Notable drivers included the ramp-up of new projects, like Yamal LNG in Russia and Moho Nord in Congo, as well as the contribution of new assets, in particular Maersk Oil and Al Shaheen in Qatar,” CEO Patrick Pouyanne explained.
There were also two start-ups during the quarter: Fort Hills in Canada and Timimoun in Algeria, he added.
Quarterly results showed hydrocarbon output rose the most in the Middle East and Africa, by 20%, to 639,000 BOE/d. However, operations in Europe and Central Asia produced the most oil and gas for Total, an average of 886,000 BOE/d.
Oil production was up 31% in the Americas, to 165,000 BOE/d, but Africa and the Middle East/North Africa regions were the top producers, with 503,000 BOE/d and 501,000 BOE/d of output, respectively.
Gas output rose the most in Africa (20%), to 857,000 MMcf/d, but Europe and Central Asia contributed 3.15 MMcf/d to the quarter’s gas production. Meanwhile, liquefied natural gas (LNG) sales were down 16%, at 2.5 million tonnes.
Total expects its production growth to surpass the 2018 target of 6%, thanks to the start-ups and ramp-ups of new projects, as well as the integration of recently acquired assets, supporting the 2016-22 target of 5% per year on average.
Despite higher realized oil and gas prices, which increased by 23% and 15%, respectively, Total’s Q1 profit was down 7%. The company posted net income of $2.64 billion vs. 2.77 billion in Q1 2017.
