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Total to shed USD 10bn worth of assets by 2017

22nd September 2014

Shell has announced that it intends to sell up to USD 10bn of assets between now and 2017 in a move designed to focus on areas of growth and high-profitability

Total to shed USD 10bn worth of assets by 2017
The Anglo-Dutch supermajor plans to shake up its upstream focus in order to attain its targeted goal of USD 15bn worth of free cash flow by 2017

“Having achieved its objective to sell USD 15-20bn of assets over the 2012-14 period, Total reaffirms the importance of its active portfolio management strategy,” Shell said in a statement today. “Taking into account the acquisitions made over the same period, the group announces an additional asset sale programme of USD 10bn in 2015-17. Total is continuing its transformation by focusing on strategic assets providing growth and high profitability.”

The Anglo-Dutch supermajor plans to shake up its upstream focus in order to attain its targeted goal of USD 15bn worth of free cash flow by 2017 and to raise its production levels to 2.8 million barrels of oil equivalent a day.

It also intends to increase cash flow by continuing its cost-cutting measures in sectors or fields that fail to make substantial profit.

“The entire group has been mobilised to contribute to a sustainable cost reduction program. Having reached a peak of USD 28bn in 2013, organic investment is projected to decrease to USD 26bn in 2014 and to USD 25bn in 2017. The group also announces a major programme to reduce operating costs by USD 2bn per year by 2017, with an immediate impact as of 2015. This programme will be implemented without compromising the priority to safety.”

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