Decision sends a signal to state-owned firms
Total E&P Canada remains committed to developing its oilsands assets but its new president and chief executive concedes it may take longer than expected.
Andre Goffart, 55, a 30-year veteran of the Paris-based company, was appointed to the position Monday.
Jean-Michel Gires, president and CEO since 2009, set the company on course to spend $20 billion to achieve 200,000 barrels per day of oilsands production by 2020, a schedule Goffart would not guarantee.
“It’s true the environment has been a bit more testing for the oilsands projects, the cost issue, and all the companies are reviewing their portfolios, trying to get more robust economics out of their projects and we have done that as well,” he told the Calgary Herald.
“We may need more time to optimize our projects but our strategy remains unchanged. We want to see those projects taking off.”
Goffart said he was involved with Canada as a member of its new ventures team 10 years ago when it entered the Surmont oilsands project led by 50 per cent partner ConocoPhillips.
Total’s only current oilsands production comes from the Surmont steamassisted gravity drainage in situ project, now producing 25,000 bpd. Phase 2 development at the site south of Fort McMurray in northern Alberta has begun and pro- duction is scheduled to start in 2015, eventually expanding to 136,000 bpd.
But ConocoPhillips has indicated it wants to sell half of its 50 per cent stake, along with other assets.
Total is in the midst of bringing its other oilsands assets to production stages, with projects on its list including the 100,000-bpd Joslyn North Mine in which it is the operator and has a 38.25 per cent interest.
It is in a joint venture with Suncor Energy Inc. on that project, the Fort Hills oilsands mine and the Voyageur upgrader projects — Suncor has signalled a “go slow” approach on the mines while vowing to make a decision on the upgrader by March 31.
“Voyageur is an important project for Total, but we also have to recognize the environment has not been very favourable for upgrading recently due to the fact that the nonconventional light oil production has increased significantly particularly in the U.S. and the margins are on the lower side,” he said.
“Nevertheless, we need to look at it very carefully because of it is a strategic piece of our development.”
Total also owns a 50 per cent interest in the proposed Northern Lights mine, with Chinese-owned Sinopec Corp. owning the remainder.
Goffart was most recently vicepresident of projects and deputy CEO of Total’s joint venture with Gazprom and Statoil to develop Phase 1 of the Shtokman field in the Barents Sea, one of the world’s largest gas deposits.
Goffart joined Total in 1982, and has held drilling and project management roles in 11 countries, including France, Norway, the United Kingdom, the United Arab Emirates, Bolivia, Angola and Russia.
Goffart holds an engineering degree from the Ecole des Ponts ParisTech.
He said he’s looking forward to enjoying the outdoors in Calgary. His wife and daughters, ages 11 and 14, plan to move to the city next summer, after the school year is over.