French oil major Total (NYSE: TOT) received 18,000b/d of oil from Venezuela's state oil company PDVSA in the first quarter in compensation for its 17% stake in the Sincor project, Total CFO Robert Castaigne told a conference call.
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LatinPetroleum magazine - Issue 04.2008
Total ceded the 17% to PDVSA last year as part of Venezuela's nationalization strategy.
Total had a 47% stake in the Sincor heavy crude project that is now known as PetroCedeño. Total now holds a 30.3% stake in the JV, PDVSA has 60% and Norway's StatoilHydro (NYSE: STO) 9.7%.
Based on the price of oil, Total expects to receive the compensation deliveries throughout 2008 and into 2009, the CFO said. Total is due to receive crude shipments worth US$834mn for the nationalized stake, according to local press reports.
The net effect of the nationalization on Total's balance sheet was neutral because of the compensation, Castaigne said.
FINANCIAL RESULTS
Total said that its production in South America was steady at 217,000boe/d in the first quarter, up 5% from the 206,000boe/d reported in 1Q07.
The company reported production of 244,000boe/d in 4Q07.
Total posted net adjusted income of 3.25bn euros (US$5.01bn) for the first three months of this year, up 9% from 2.99bn euros in 1Q07, the company said in a statement.
