Total CEO says to use cash on new oil projects

PARIS, May 16 (Reuters) - Total (TOTF.PA: Quote, Profile, Research, Stock Buzz) will use its cash to fund new large-scale oil and gas projects such as the giant Shtokman gas field in the Arctic, Chief Executive Christophe de Margerie said on Friday.

"Our company has all the means to continue to grow from the portfolio it has built in the past and that it is continuing to expand," de Margerie told a shareholder meeting, in response to a question on whether Total planned to make a big acquisition or hand back cash to shareholders through an exceptional dividend.

Total reported a net profit of 12.2 billion euros ($18.9 billion) in 2007 and has pegged 2008 capital expenditure at around $19 billion.

Large exploration and development investments will fuel the group's growth, de Margerie said, citing multi-billion dollar projects to develop deep oil fields in Angola and build a 400,000 barrels a day refinery in Saudi Arabia.

"We need our cashflow to finance this growth. Don't worry, the house knows what to do with its war chest, if such a thing exists," de Margerie said. "We will make good use of it (the cash). We demonstrated that in recent years."

Total will achieve other big successes such as Shotkman, he said, referring to the Barents Sea gas field in which Total obtained a 25 percent stake to develop the $15 billion first stage of the project -- with Gazprom (GAZP.MM: Quote, Profile, Research, Stock Buzz) holding 51 percent and StatoilHydro (STL.OL: Quote, Profile, Research, Stock Buzz) the remaining 24 percent.

Shtokman is expected to start production in the first half of the next decade and is set to supply Europe and the United States with gas for decades. Total has said it would make a final investment decision on Shtokman in 2009. (Reporting by Marie Maitre; Editing by David Holmes)