By Sarah Kent

LONDON--French oil giant Total SA (FP.FR) has no plans to loosen its purse strings even as oil prices flirt with $82 a barrel.

Burned by the dramatic 2014 slump in oil prices, big oil companies have been wary of raising their spending plans even as crude surged toward its highest level in four years.

Total's comments Tuesday offer the first in-depth insight into the industry's thinking since international benchmark Brent hit the $80-a-barrel milestone in recent days.

"We continue to strongly believe that the best position in this type of commodity market is to look to our breakeven and be disciplined rather than betting on high prices," Chief Executive Patrick Pouyanne told investors at the company's strategy update in New York. "We've seen a very volatile market. We could face some downturn in the future."

Even if prices do stay high, Total said it remains committed to conservative spending plans. It plans to use any excess cash generated by higher oil prices to help reduce the company's debt burden and buyback shares.

Total kept its spending guidance steady at $15 billion to $17 billion a year out to 2020, while continuing to focus on bringing down costs. It has reduced the oil price it needs to cover spending and shareholder payouts from more than $100 a barrel in 2014 to less than $50 a barrel.

"A significant reduction of the breakeven is important because we don't control the prices, but this is something over which we have control," Mr. Pouyanne said.

Write to Sarah Kent at sarah.kent@wsj.com

(END) Dow Jones Newswires

September 25, 2018 13:22 ET (17:22 GMT)

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