Nov. 23 (Bloomberg) -- Christophe de Margerie, chief executive officer of Total SA, Europe's third-largest oil company, said results will drop in this year's fourth quarter and the first quarter of 2009 after energy prices declined.

``We had a very good result in the third quarter because energy prices were high,'' de Margerie said on RTL radio and LCI television today. ``Prices have dropped, so the fourth quarter won't be as good, and so will the first quarter.''

Profit excluding changes in inventories and items relating to the Sanofi-Aventis SA merger rose to 4.07 billion euros ($5.1 billion) in the third quarter from 3 billion euros a year earlier, the Paris-based company said on Nov. 5.

Crude-oil prices, which closed at $49.93 on the New York Mercantile Exchange on Nov. 21, have fallen 66 percent since reaching a record $147.27 on July 11 on speculation fuel demand will drop as world economies slip into recession.

Venezuela will call on the Organization of Petroleum Exporting Countries to cut oil output by an additional 1 million barrels when the group meets this week, Energy and Oil Minister Rafael Ramirez said in Caracas today.

``A barrel below $50 is a danger'' because ``a lot of small companies won't be able to invest'' to develop oil fields, the Total CEO said. OPEC members ``need higher prices, so they will intervene.''

China, Canada

De Margerie said the oil price won't ``lastingly'' remain below $50 a barrel becahse China and other emerging nations have the means to stimulate economies, which will eventually boost growth in Europe and the U.S. A price of around $80 or $90 per barrel is needed to develop oil production in countries like Canada, he said.

When asked whether Total might be taken over, de Margerie replied that a purchase wouldn't be ``easy'' because the company is ``financially sound.'' He pointed out that governments also have the means to thwart hostile takeovers.

Total shares have dropped 35 percent this year to 36.73 euros, reducing the company's market value to 87 billion euros.

De Margerie also said defended the investment policy of sovereign wealth funds, saying they never take stakes of more than 2 percent to 3 percent.

``I wish that'' these funds would ``enter more in Total,'' he said. ``We're going to push them.''

While there's ``oil for more than a hundred years,'' fossil fuels will be unable to meet demand in the ``medium and long term,'' the CEO said. That's why Total is seeking to develop partnerships in nuclear power and to invest in solar energy, while staying away from wind power, de Margerie said.

The Total CEO said he was paid 2.75 million euros last year and received 200,000 stock options, exercisable at 60 euros. De Margerie also said he would be due two years of wages as severance if he were to be ousted by the board without fault.

To contact the reporter on this story: Francois de Beaupuy in Paris at fdebeaupuy@bloomberg.net.

Last Updated: November 23, 2008 14:24 EST