French energy group Total will book an exceptional impairment charge of $8 billon mainly on its Canadian oil sands and LNG projects, the said July 29.

“Overall, the exceptional asset impairments that will therefore be taken into account in the second quarter of 2020 amount to $8.1 billion, including $7 billon on Canadian oil sands assets alone,” Total said in a statement, adding that this will increase its gearing ratio by 1.3%.

Total said it had revised its oil price assumptions for the next years given the drop in prices in 2020, setting the Brent price at $35 per barrel in 2020, $40 in 2021, $50 in 2022 and $60 in 2023.

The company maintained its longer-term analysis that the drop in investments in the oil sector since 2015, accentuated by the coronavirus health and economic crisis, would result in insufficient global production capacities by 2025 and a rebound in prices.

“Beyond 2030, given technological developments, particularly in the transportation sector, Total anticipates oil demand will have reached its peak and Brent prices should tend toward the long-term price of $50 per barrel,” Total said.