Total looks for capex reduction of 50% for new projects
Energy company Total is aiming to reduce capital expenditure (capex) by 50% for new deep-water oil drilling projects. As part of Total's plan, the company will evaluate how currently used technologies would have reduced capex for previous projects. For example, improved flow modelling demonstrated that it could have saved 4% on its operation off Shetland by forgoing an unnecessary service line, among other measures. Total is publicising the savings it could have made to the rest of the industry to bring down the cost of deep-water projects, said Luc Riviere, a senior adviser at Total's deep offshore business.
In these cost-conscious times, paring down the capital costs of a new deep-water project by 20% is quite a feat.

But Total has a much more ambitious goal in mind — a capex reduction of 50% for new projects.

It will not happen overnight — savings on that scale will require technologies not yet in use, and further refinement of existing practices.

However, there are significant incremental cost reductions that can be achieved now, says Luc Riviere, senior adviser in Total’s Deep Offshore business.

Barring