TOTAL CEO Seeks Deeper Ties With Chinese Energy Companies

The chief executive of France’s largest energy producer said he would like to deepen his company’s partnerships with Chinese energy corporations in China and around the world.

Chistophe de Margerie, the chairman and CEO of Total Group, told Tsinghua University students on March 22 that China has a significant interest in both increased energy production and clean energy technologies.

At an event organized by the Tsinghua University School of Economics and Management and the Tsinghua School of Journalism and Communciation, de Margerie engaged in a dialogue with Dr. Hang Min, co-director of the Global Business Journalism Program, and later responded by questions from students including GBJ’s Cynthia Chen.

Responding to students’ queries, de Margerie defended his company’s use of hydraulic fracturing technology in energy exploration. He said Total adheres to the clean-energy standards of the countries in which it is doing business.

De Margerie said energy production can be expensive and, as a result, his company does not market all of its products in every country in which it operates.

“We have to make a profit,” he said.

Dr. Hang called the program a valuable learning experience for Tsinghua students.

"Such an event provided our students with not only industry information but also a better understanding of future energy,” she said. “Students learned from the insights of an industry practitioner and also an on-site experience joining in the dialogue in person."

Total, a Paris-based global energy giant, is one of the first international oil companies engaged in China’s offshore exploration. The privately owned corporation has a long history of working with Chinese companies such as China National Offshore Oil Corporation through project management and offshore technology transfer.

Total China recently inaugurated a new state-of-the-art lubricants blending plant in Tianjin.

De Margerie said he hoped to continue Total’s cooperation and collaboration in China. In addition to business ties, Total is committed to participating in more areas of social life in China from healthcare to addressing social issues, he said.

The Total CEO said his company stays out of local political issues and expressed regret that in the past there were tensions involving because of the French government’s decision to sell military aircraft to Taiwan. As a private company, he said, Total had nothing to do with the French government’s actions.

De Margerie, 62, joined Total in 1974 after graduating from l’Ecole Superieure in Paris. Before becoming CEO in 2007, he served as president of Total Middle East and president of Total’s Exploration & Production division.