Major investments over the 2012-2014 period
Organic investments, including net investments in equity affiliates and non-consolidated subsidiaries, amounted to $26.4 billion in 2014 compared with $28.3 billion in 2013, a 7% decrease. The Group’s organic investments reached a high in 2013, as provided in the Group’s roadmap, and the commitment made to reduce investments was fulfilled. Most of the major projects that will support the Group’s production growth through 2017 were launched, with investments reducing as projects start up.
In 2014, most investments in the Upstream segment were geared toward the development of new hydrocarbon production facilities and exploration operations. Development expenditure mainly pertained to major projects that drive the Group’s growth, such as GLNG and Ichthys in Australia, Surmont in Canada, the Ekofisk and Eldfisk areas in Norway, the Laggan-Tormore project in the United Kingdom, Moho North in the Republic of the Congo, CLOV in Angola, Ofon II and Egina in Nigeria and Yamal in Russia.
In the Refining & Chemicals segment, investments were made in facilities maintenance and safety, as well as in projects aimed at improving the plants’ competitiveness, particularly their energy efficiency. 2014 was marked by the startup of the new SATORP refinery in Saudi Arabia and the new petrochemicals plants in Daesan, South Korea. In addition, the investment project in Antwerp, Belgium and the adaptation project in Carling, France are currently underway. In the Marketing & Services segment, investments in 2014 mainly concerned the network, logistics and specialty products production and storage facilities.
While mobilizing its teams for the startups in the Upstream segment over the next two years, the Group is preparing for the future beyond 2017 by expanding its acreage and acquiring stakes in new promising assets. Acquisitions were $2.5 billion, comprised principally of the acquisition of an interest in the Elk and Antelope discoveries in Papua New Guinea, the acquisition of an additional stake in OAO Novatek(2) and the carry on the Utica gas and condensate field in the United States.
Gross investments (including acquisitions and changes in non-current loans) therefore fell by 12% to $29.0 billion in 2014 compared with $32.8 billion in 2013.
The Group also continued its asset sale program with the finalization of sales totaling $4.65 billion in 2014, comprised essentially of the sale of interests in Shah Deniz and the associated pipelines in Azerbaijan, Block 15 / 06 in Angola, GTT (Gaztransport et Technigaz) and the Cardinal midstream assets in the United States. Asset sales were $4.75 billion in 2013.
The 2012-14 asset sale target of $15 to $20 billion was met with the completion of $17.5 billion in sales during the period. In addition, the sale of Bostik was completed in February 2015 and the pending sales of the coal mines in South Africa and Totalgaz are awaiting approval from the authorities.
Net investments were therefore $24.1 billion in 2014, compared to $25.9 billion in 2013, a decrease of 7%. This decrease was mainly due to the reduction in investments(1), since asset sales varied by only 2% between 2013 and 2014.
(1) Including acquisitions. The main acquisitions in fiscal years 2012-2014 are detailed in Note 3 to the Consolidated Financial Statements of this Registration Document.
(2) The Group held an 18.24% stake in OAO Novatek as of December 31, 2014.