The terms for investing in the South Pars liquefied natural gas project in Iran aren't currently attractive enough, Total SA (TOT) Chief Executive Christophe de Margerie told delegates at an oil conference Thursday.
Speaking subsequently to reporters on the sidelines of the conference, de Margerie said the French oil major continues to talk to Iran.
"With countries one doesn't ever stop, one can't do stop and go," he said.
On the subject of Total's interest in takeovers, de Margerie said the company "isn't in a rush" to make acquisitions.
Earlier this year, Total made a hostile C$617 million bid for would-be oil sands developer UTS Energy Corp. (UTS.T) - since rejected as "inadequate" - whose main asset is a 20% stake in the delayed Fort Hills project. Total is thought to be after Teck Cominco Ltd.'s (TCK) 20% interest in the same development.
De Margerie noted Total had extended its offer through April 16 at the same price. When asked about the company's chance of success he said he is "always confident."
Total's CEO emphasized UTS would be a "targeted" acquisition, adding: "There is not a large acquisition in view for Total."
Expanding on earlier comments that Total's 2009 capital expenditure might end up lower than planned, de Margerie said that wouldn't be because of financial constraints.
"We notice simply that in the partnerships we are in, there are for all sorts of reasons, with other partners things that mean projects have a tendency to be delayed," he said. Delays wouldn't be caused or wanted by Total, he explained.
"We have enough cashflow and financial capacity to live up to our commitments without a problem," de Margerie said.