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Total cuts investment and employees to counter weaker oil prices


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Total cuts investment and employees to counter weaker oil prices

France’s Total is the latest energy firm to say it is cutting investment and the number of people working for it because of weak oil prices.

The Paris-based company is also speeding up its sale of assets this year.

In its latest quarterly results Total said the price slump and lower demand meant its North American oil sands and shale assets and European refineries are worth $6.5 billion (5.7 billion euros) less than previously calculated.

Two thousand jobs will go worldwide mostly through a hiring freeze.

Chief Executive Patrick Pouyanne said spending less on exploration also reflected a change in strategy.

It will revamp the process after having failed to return any major oil find in recent years.

“We consider that after having spent a lot of money in exploration in the last three years without the results we expected, it was preferable that exploration teams be put under a certain pressure, that they get forced to make choices,” Pouyanne told reporters.

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