Tota; Sees enough oil supply on market to absorb Iran sanctions impact

There was enough oil supply in the market to absorb the impact of international sanctions on Iran, Total chief executive said on Monday .




Christophe de Margerie declined to estimate how much European and U.S. sanctions would impact Iran's around 2.2 million barrels per day of exports, but said oil markets had already priced in disruption.

"The market doesn't believe it will have that much impact otherwise the price of oil would have climbed to a higher level," he said. "So you have the answer in the market."

Total was the second-largest buyer of Iranian oil among the European Union and Turkey in 2011, according to industry and Reuters estimates, but bought no Iranian oil in March and April.


Total would end a gas leak at its North Sea Elgin field in the coming days, de Margerie said. The company was waiting simply for good enough weather to kill the well, he added.

The well is leaking around 50,000 cubic metres a day of gas, down from 200,000 cubic metres a day when the leak first started in March.

The Angola LNG project would start production in June, de Margerie said. The LNG would go into the spot market, he added.

Gas from the Angola project was initially destined for the U.S. market, but the rise in domestic shale gas supply there has stunted demand for imported LNG.

"The shareholders in the project are using their trading strength to find the best outlets for the gas," he said.

Total has a 13.6 percent stake in the 5.2 million tonnes per annum Angola LNG project. Chevron owns 36.4 percent and Angolan state oil giant Sonangol has 22.8 percent. Italy's ENI and BP also hold stakes.

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