Total CEO dies in Moscow plane crash

Moscow -  The chief executive of French oil major Total, Christophe de Margerie, was killed when his private jet collided with a snow plough as it was taking off from Moscow's Vnukovo airport on Monday night.

De Margerie's death leaves a void at the top of one of the world's biggest listed oil firms at a difficult time for the industry as oil prices fall and state-backed competitors keep them out of some of the best oil exploration territory.

The collision occurred minutes before midnight Moscow time as De Margerie's Dassault Falcon jet was taking off for Paris.

The Vnukovo airport said in a statement that the business aviation jet crashed as it prepared to take off for Paris. Visibility was 350 metres at the time of the accident, the airport said, as Moscow saw its first snowfall of the winter on Monday.

In a statement, Total said: "Four people were found dead at the scene of the accident, including three crew members and Christophe de Margerie."

Experts from the Interstate Aviation Committee, which investigates all Russian air accidents, and officials from Russia's federal aviation agency have launched a probe into the accident.

The investigating committee said in a statement that "it has been established that the driver of the snowplough was in a drunken state".

It added that a primary preliminary theory was that "an error by air traffic controllers and the actions of the snowplough driver" were to blame.

The possible role of "bad weather and errors by pilots will also be checked," it said.

The plane's black boxes have been recovered, an airport spokesperson said.

Moscow transport investigators said in a statement they had opened a criminal probe into breaches of aviation safety rules causing multiple deaths through negligence, which carries a maximum jail term of seven years.

De Margerie, 63, had attended a Russian government meeting on foreign investment in Gorki near Moscow on Monday.

With his distinctive bushy moustache and outspoken manner, he was one of the most recognisable of the world's top oil executives. Total is France's second-biggest listed company, with a market value of €102bn.

Politicians pay tribute

"France is losing an extraordinary business leader who turned Total into a world giant," French Prime Minister Manuel Valls said in a statement. "France is losing a great industry captain and a patriot."

De Margerie was also a personal friend of French President Francois Hollande, who said he was "stunned and saddened" by the news. Accolades poured in from other French business leaders.

French Finance Minister Michel Sapin said on Europe One radio in France that De Margerie was "the head of the biggest French company of international repute" and that he was "truly a great business leader".

Of Total, Sapin said: "It is a French company which has chosen to stay based in France and which drew its strength, as he used to say, from the fact of being French".

Russian President Vladimir Putin on Tuesday praised De Margerie. "In Christophe de Margerie, we lost a real friend of our country, whom we will remember with the greatest warmth," Putin said.

In a telegram sent to French President Francois Hollande, published by the Kremlin, Putin said he was "shocked by the news" after De Margerie's jet crashed into a snow plough at Moscow's Vnukovo airport, killing all on board.

Putin asked Hollande to "pass on the most sincere condolences and words of sympathy" to De Margerie's family and loved ones.

He praised the oil boss as "an outstanding French entrepreneur who originated many major joint projects that formed the basis of many years of fruitful cooperation between Russia and France in the energy sector."

"In Christophe de Margerie, we lost a real friend of our country, whom we will remember with the greatest warmth," Putin said.

Shares steady after initial fall

Shares in Total fell sharply in initial trading on Tuesday, but then steadied for a loss of 0.21% following De Margerie's sudden death.

Total is the second-biggest company by market value on the Paris stock market, a leading oil group in global terms, and one of the top names in French industry.

With attention turning immediately to who would succeed De Margerie, a major figure in French industry and in the world oil industry, the group announced early on Tuesday that its board would meet as soon as possible.

Within an hour of the market opening, Total shares were down 0.21% to €42.85, and the main overall CAC 40 index in Paris was down 0.21%, having shed 0.56% initially.

At RBC Capital Markets, analysts had expected the share to fall owing to the driving role played by De Margerie in the company.

He was one of the "central figures" of the oil industry and "the loss is going to be felt profoundly within Total", they said. But they did not expect any changes or uncertainty regarding daily management of the group.

One trader in Paris who declined to be named said that "this death will raise the question of the appointment of a successor" and the new chief executive would most probably be drawn from the existing members of the main board.

In France, however, the company has also been the target of criticism in recent years, most recently over objections that its tax bill is unduly low.

Potential successors

De Margerie became Total's CEO in 2007, taking on the additional role of chairperson in May 2010, after previously running its exploration and production division.

He said in July that he should be judged on the new projects launched on his watch, including such as a string of African fields.

He also said then that Total would seek a successor from within the company. The company had not officially announced any succession plan, but said it would hold a board meeting as soon as possible.

Philippe Boisseau, head of Total's new energy division, and Patrick Pouyanne, who was charged with reducing exposure to unprofitable European refining sectors, have long been seen as potential successors.

De Margerie was a staunch defender of Russia and its energy policies, as the conflict in Ukraine has raised tensions with the West to levels not seen since the Cold War, and triggered economic sanctions against Moscow.

Total is one of the top foreign investors in Russia and also one of the oil majors most exposed to Russia, where its output is due to double by 2020.