UPDATE 1-Total eyeing M&A but organic growth remains priority

* Says focused on organic growth but looking at M&A

* Confirms target to invest $18 bln in 2009

* Says nuclear venture is a test, learning from others

* Plans to pay interim dividend of 1.14 euro/share in Q4

PARIS, May 15 (Reuters) - Total (TOTF.PA) remains focused on growing earnings organically but continues to look around for acquisition opportunities after its failed bid for Canada's UTS (UTS.TO), the head of the French oil major said on Friday.

Chief Executive Christophe de Margerie also reaffirmed Total would keep its investment level unchanged at $18 billion in 2009 despite a difficult economic environment and lower oil prices that make it less profitable to develop certain projects.

"It's important to know how to do acquisitions, even if we are giving the priority to organic growth rather than external growth," de Margerie told an annual meeting of shareholders.

Although it is still ruling out a major acquisition, Total is looking at opportunities everywhere, including Canada where it recently dropped a $680 million bid after failing to win support from the Canadian oil sands developer's shareholders.

"(The failure of Total's bid for UTS) does not alter our will to develop in oil sands in this country. We will simply do it through other operations," said Margerie, who heads the world's fourth largest oil group by market capitalisation after Exxon (XOM.N), Royal Dutch Shell (RDSa.L) and BP (BP.L).

Earlier this month, Total Chief Financial Officer Patrick de la Chevardiere said the group was looking at acquisitions notably in Canada, Brazil and Australia.

NUCLEAR TEST

Margerie also confirmed Total would invest some $18 billion in 2009 as it seeks to increase it oil and gas output despite difficult economic conditions -- with a target to produce an extra 200,000 barrels of oil equivalent per day by 2010.

The oilfields of Akpo in Nigeria and Tahiti in the Gulf of Mexico, are among Total's biggest and most recent projects, and the group also expected to start production on Yemen LNG, Tombua Landana in Angola and Qatargas II in Qatar in coming months.

Total aims to remain an oil and gas group, Margerie said, adding though that it would also look at the nuclear industry, where it ventured in recent months by taking stakes in two projects in the United Arab Emirates and France.

"We clearly remain an oil company... but it seems logical to us to look at what we could do in the long term," he said.

"Today, the nuclear (sector) is a test (for us)... Will we make it one day a new pole of development for the group? This is still a question," he said, ruling out taking minority stakes if it is not with the goal of becoming an operator one day.

"The goal is to see if eventually we can operate nuclear operations or not. Today we are doing it by taking stakes to learn from the experience of others," such as French companies EDF (EDF.PA), GDF Suez .GSZ.PA and Areva (CEPFi.PA), with whom Total has partnered for its two nuclear projects. Total also said it was planning to pay in the fourth quarter an interim dividend of 1.14 euros on 2009 earnings.

Shareholders approved on Friday the principle of the chairmanship and the CEO-ship being joined together. They had been split in 2007.

Desmarest said he would step down as chairman in 2010 when he turns 65 years old, and that Margerie would become chairman. Total shares were uo 0.05 percent at 40.38 euros by 1300 GMT, while the European energy .SXEP sector rose 0.49 percent. ($1=.7349 euros) (Reporting by Marie Maitre; editing by Mike Nesbit)