TOTAL has underlined its commitment to the UK North Sea as it revealed the identity of the new boss of its operations in the area.
The French oil and gas giant said Jean-Luc Guiziou has been appointed managing director of Total Exploration and Production UK with effect from today.
A geophysicist by training, Mr Guiziou has held senior roles with Total around the world and in the group’s head office.
He succeeds Elisabeth Proust who spent three years leading the UK business as it responded to the challenges posed by the sharp fall in the oil price since 2014.
Read more: North Sea business shake up at Total
Total brought the giant Laggan Tormore and Edradour Glenlivet developments West of Shetland on stream during her time in charge.
The company showed its faith in the potential of the North Sea by acquiring Maersk Oil & Gas for $7.45 billion in August. The deal made Total the largest producer in the UK North Sea.
Read more: North Sea in focus as Total buys Maersk Oil
Noting the enlarged business has substantial reserves, Mr Guiziou said: “The future for Total in the North Sea is very promising.”
Mr Guiziou will complete work on the integration of Maersk Oil & Gas.
Total announced in March that it expected to cut around 250 jobs in Aberdeen as the integration proceeds.
Read more: 250 oil jobs lost despite claim of North Sea boost
The company’s decision to increase its exposure to the North Sea provided a sign that majors were rediscovering their enthusiasm for the area, following deep cuts in spending amid the crude price plunge.
Giants such as Shell have focused investment on the assets they expect to generate the best returns from while off-loading non core interests.
In January Shell approved plans to revamp the giant Penguins field north of Scotland.
Chief financial officer Jessica Uhl said last week the group had seen a fantastic performance from its North Sea assets recently.
Meanwhile the chief executive of a North Sea-focused independent, Cluff Natural Resources, has said the area has become an increasingly attractive place in which to invest.
Graham Swindells said: “With a sustained recovery in oil and gas prices coupled with a significant reduction in exploration costs, we believe now is a perfect time to be investing in drilling in the North Sea.”
His comments highlight the impact of the increase in the crude price since late 2016, following moves by major exporters to support the market.
The prices of services such as drilling support fell sharply amid the downturn triggered by the plunge in the crude price between 2014 and 2016.
Mr Swindells added: “While there is always more that could be done to support investment in exploration, in the UK we are fortunate to have flexible and effective regulators in the Oil & Gas Authority and a favourable (top quartile globally) fiscal regime which makes the UK North Sea an attractive place in which to invest.”
His comments were included in the latest annual results announcement by Cluff Natural Resources.
Chaired by oil and gas pioneer Algy Cluff, the company has focused on the North Sea after shelving plans to produce gas from coal that lies beneath the Forth.
Read more: North Sea oil and gas pioneer returns to his military roots with new charity
Mr Swindells said the company had made good progress in 2017 towards getting exploration prospects in the Southern North Sea ready for drilling.
The process of getting other firms to buy into its acreage has taken longer than expected.
“The farm in market has, with one or two exceptions, remained subdued throughout 2017 with exploration budgets amongst major operators still limited,” said Mr Swindells.He welcomed signs of renewed interest in the North Sea market.
Cluff Natural Resources is in dialogue with a number of parties and hopes to drill one or more wells in 2019.
It made a substantial application for additional licences in the UK’s latest (30th) offshore licensing round.
Aim-listed Cluff Natural Resources cut losses to £1,590,203 last year, from £1,730.606 in 2016.
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