'KnowTheFacts' pid='66645' datel Wrote:
'katytrader' pid='66640' datel Wrote:At the very end of the TOT call's Q & A, M. Pouyanne used Papua as a project in which TOT saw a long-term investment and expected that with few LNG projects likely to be started, the project would benefit from lower costs. There was more verbiage, but for the life of me I could not get ckeditor to communicate with my notepad.
Oswald Clint - Sanford C. Bernstein Ltd.
Yes. Thank you very much. Oswald Clint at Sanford Bernstein. Slightly longer-term question but you mentioned the 2P reserve number and the focus for low breakeven oil projects. Can you say kind of what's in that 2P reserve bucket? What was the general average breakeven on the projects and how is that number falling away as we think about longer-term growth, longer-term competitive of Total?
And second question, you've been signing some LNG contracts, I guess recently in January with Indonesia, China, decent 15 years or so. Can you talk about what that's telling you about LNG demand and also what type of pricing is inherent within those plays? Thank you.
Patrick Pouyanné - Chairman & Chief Executive Officer
Laurent will prepare the answer to the question on the pricing. Laurent Vivier of Gas is in the room I think. So Laurent will give you the answer. First, I would like to say, by the way, and before Laurent is thinking to answer, to the right answer, that we are pleased to be able to expand our customer base in LNG. It's very important because LNG markets is shifting clearly from a producing – from a seller market to a buyer market. And so, for launching new projects like the project that we have in Papua New Guinea, which is a low cost project in terms of and very well positioned, we need to find new customers. And the efforts this is the focus of Laurent team is to identify new customers, to go beyond the traditional buyers in China and in Southeast Asia, and Laurent will give you some indication on the – on this type of market price. Laurent, you don't deliver the contract. You are not obliged to answer fully.
Laurent Vivier - President-Gas Division
Just to say that it's in fact contrary to some expectation in market, which is quite long, but it's still possible to secure those contract. They are very traditional contracts in terms of price formula. It's mostly oil-related at levels maybe slightly above than what has been done just before, and we've been able to put a bit of hurry up into it as well. It's very classical contracts, all related for, which on average for more than 90%.
Good. Now go the very end, last or penultimate page, for the paragraphs I referenced.....