LONDON—Some of French oil company Total SA's market trades in the U.S. are under investigation by the Commodity Futures Trading Commission, and the company is in talks to settle the matter, company officials said Wednesday.

The existence of the CFTC probe emerged a day after a separate U.S. agency, the Federal Energy Regulatory Commission, released a notice accusing a Total subsidiary of making money-losing gas purchases intended to move prices in a way that helped it make profits on other trading positions on at least 38 occasions in the southwestern U.S.

Asked about the FERC probe in an interview, Total Chief Executive Patrick Pouyanné dismissed the allegations, saying the company was settling similar allegations by the CFTC "for a few million dollars."

"There was no wrongdoing," Mr. Pouyanné said, visiting London for an investor conference.

The CFTC declined to comment. FERC didn't respond to messages seeking comment. The CFTC regulates the trading of financial securities tied to commodities while FERC oversees the marketplace of physical gas and power products. They often investigate similar allegations.

It isn't clear when the CFTC began its investigation. The trades were made between 2009 and 2012, FERC said.

The company has been transparent and fully cooperated with both regulators and would be ready to discuss a settlement with FERC too, Mr. Pouyanné said.

"Either we can settle for the right level of settlement and if not we can go to court," he said.

In a written statement after the interview with Mr. Pouyanné , Total said the company "is fully cooperating with the authorities and has provided all documents requested. In light of these documents, Total is convinced that none of the allegations has been committed."

Total is among the world's largest oil producers but also has a sizable trading arm that buys and sells everything from crude to refined products and petrochemicals.

In the U.S., it has been a player in physical and financial natural-gas markets for 25 years.

The allegations are the latest in a series of crackdowns by FERC against manipulation in the gas and power markets. In recent years the regulator has pursued high-profile cases against J.P. Morgan Chase & Co., Barclays PLC and Deutsche Bank. J.P. Morgan and Deutsche Bank both settled their cases, but Barclays is challenging its case in court. The companies in those cases deny wrongdoing.

Last month, an administrative law judge for the regulator found BP PLC manipulated the U.S. gas markets in allegations similar to those outlined against Total. Enforcement lawyers from FERC have sought fines of nearly $50 million for the market abuse, though the government's evidence showed the activity netted the company less than $250,000 in profit.

BP denies wrongdoing and is appealing the ruling.

Mr. Pouyanné said Total had conducted its own inquiry into the trades and found that "nothing happened."

"I trust my trading team," he said.

Mr. Pouyanné said the subsidiary that was trading in the U.S., Total Gas & Power, "is not a big business."

FERC hasn't said how much it would seek in fines from Total.

Separately, company officials said Wednesday that Total will pump less oil than expected in 2017 amid new cost cuts intended to protect its ability to pay investor dividends during a period of low oil prices.

The company lowered its target for output in 2017 to an average 2.6 million barrels of oil equivalent a day, down from a previous target of 2.8 million.

The company's chief financial officer, Patrick de la Chevardiè re, attributed half of the difference to delays in projects around the world and half to cuts in capital investment.

Total also assured investors at the London conference that a new round of cost-cutting would allow it to cover its shareholder payouts into 2017 even with oil prices around $60 a barrel.

Sarah Kent contributed to this article.

Write to Inti Landauro at inti.landauro@wsj.com and Michael Amon at Michael.Amon@wsj.com

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(END) Dow Jones Newswires

September 24, 2015 02:25 ET (06:25 GMT)

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