12-11-2012, 04:04 AM
One thing that isn't mentioned in this write up but is in the full report is that Total's "company hurdle rate" is for their projects to have an IRR of 12%. The report also says in regard to what type of projects Total will target they say, "they expect Total to continue TD strategy of farming into assets at some stae during the initial discovery & FID."
It also mentions Total has previously identified the plowing objectives & motivations:
1) develop expertise in unconventional such as shake & oil sands that also facilitate a long asset life and ability to apply technology to other regions
2) New LNG projects are needed to satisfy Asia gas demand
3) build on deep offshore experience & competence
4) bolder approach to exploration with increased acreage accumulation
5) growing importance of new energies
6 bullish on oil prices
I'm reaching out to some ppl I know to get their thoughts on what this could mean for PNG & IOC