Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Africa<br />
TOTAL has been present in Africa since 1928. The African<br />
continent is one of the Group’s fastest growing production<br />
zones. Its exploration and production operations are<br />
primarily located in the countries bordering the Gulf of<br />
Guinea and in North Africa.<br />
Highlights of 2006 included:<br />
- in Angola, first oil of the Dalia project on Block 17, with a<br />
planned production capacity (1) of 240 kboe/d, as well as the<br />
start-up of the Benguela Belize Lobito Tomboco and<br />
Landana North fields on Block 14;<br />
- and, in Nigeria, taking interests in the Brass LNG liquefied<br />
natural gas project as well as in offshore Blocks OML 112<br />
and OML 117.<br />
In addition, several discoveries were made over the course<br />
of the year (Angola: Blocks 17 and 32, Cameroon: Dissoni,<br />
Congo: third discovery on MTPS and Mobi Marine 2, Libya:<br />
NC191/NC186).<br />
TOTAL’s production in Africa averaged 720 kboe/d in 2006<br />
(including its share in the production of equity affiliates),<br />
making TOTAL one of the leading international oil <strong>com</strong>panies,<br />
based on production, in the region. Projects in Africa<br />
accounted for 31% of the Group’s total production in 2006.<br />
Algeria<br />
The Group has been present in Algeria since 1952. Its production<br />
<strong>com</strong>es from the Hamra (100%) and Tin Fouyé Tabankort (TFT)<br />
(35%) fields, as well as, through the Group’s 48.83% interest in<br />
CEPSA, from the Ourhoud and Rhourde El Khrouf (RKF) fields.<br />
TOTAL’s share of production amounted to 80 kboe/d in 2006,<br />
down from the volumes recorded in previous years (85 kboe/d in<br />
2005 and 105 kboe/d in 2004), due, in particular, to the impact<br />
of higher oil prices on production entitlements.<br />
On the TFT field, additional development continued with drilling in<br />
the West Zone, where production began in September 2005, and<br />
with the award of the principal contracts for the project to install<br />
<strong>com</strong>pression units, which are expected to be <strong>com</strong>missioned in<br />
2008.<br />
Exploration and appraisal work, including drilling as well as 2D and<br />
3D seismic campaigns, continued on the Timimoun permit<br />
(63.75%, operator). The Hassi Mahdjib 3 exploration well (MJB3)<br />
made a discovery early in 2006.<br />
After conducting seismic work in 2005, TOTAL did not extend<br />
the Béchar prospecting contract (northwest of Timimoun) as a<br />
research contract. This contract was awarded in November 2004<br />
and expired in November 2006. The Rhourde Es Sid permit in<br />
the Berkhine basin was relinquished late in 2004 after two<br />
exploration wells had been drilled.<br />
(1) in 100%.<br />
Business overview<br />
Exploration & Production - Upstream<br />
2<br />
In addition, while the details for applying the tax on oil <strong>com</strong>pany<br />
profits introduced in December 2006 have not been finalized, a<br />
provision was made for the anticipated impact of this tax.<br />
Angola<br />
TOTAL has been present in Angola since 1953 and is currently<br />
one of the most prominent oil <strong>com</strong>panies in the country.<br />
The Group has onshore, deep-offshore and ultra-deep-offshore<br />
interests through six production permits (three operated: Blocks<br />
17, 3, and FS/FST; three non-operated: Blocks 0, 14, and 2)<br />
and three exploration permits (Block 32, operator; and Blocks<br />
31 and 33).<br />
The Group’s production <strong>com</strong>es principally from Block 17 (40%,<br />
operator), Block 0 (10%) and Block 14 (20%). On Block 17, Dalia<br />
began production in December 2006 and is expected to reach a<br />
production plateau of 240 kboe/d. On Block 14, the Benguela<br />
Belize Lobito Tomboco (BBLT) platform began production in<br />
January 2006. 20 discoveries have been made on Blocks 31<br />
and 32.<br />
TOTAL’s production in Angola (including its share in the<br />
production of equity affiliates) reached 117 kboe/d in 2006,<br />
<strong>com</strong>pared to 152 kboe/d in 2005 and 168 kboe/d in 2004.<br />
TOTAL’s production entitlement for oil and gas is determined<br />
according to the terms contained in production sharing<br />
contracts. The volumes received depend, among other factors,<br />
on cumulative prices in prior years. As a result, in 2006 TOTAL’s<br />
production entitlement was reduced due to significantly higher<br />
oil prices. Also in 2006, the project to connect the Rosa field<br />
was <strong>com</strong>pleted during the planned shutdown of Girassol for<br />
heavy maintenance, which occurs every five years. During this<br />
maintenance production was stopped for 38 days.<br />
In 2006, TOTAL participated in the call for tenders regarding<br />
previously-relinquished shares of deep-offshore blocks. In <strong>2007</strong>,<br />
TOTAL <strong>com</strong>pleted the negotiations to acquire interests in Blocks<br />
17/06 and 15/06. The last license on Block 3/80 expired in July<br />
2006.<br />
Deep-offshore Block 17 is TOTAL’s principal producing asset in<br />
Angola. It is <strong>com</strong>posed of four major production zones: Girassol,<br />
which has been in production since December 2001, Dalia,<br />
which has been in production since December 2006, Pazflor,<br />
where development studies are underway, and CLOV, which is<br />
based on the Cravo, Lirio, Orquidea, and Violeta discoveries. The<br />
“stand-alone” development design for CLOV is being studied<br />
after the successful drilling of the Orquidea-2 well in the summer<br />
of 2006.<br />
On the Girassol structure, production (1) from the Girassol and<br />
Jasmim fields reached 210 kb/d on average in 2006, despite the<br />
planned maintenance of the FPSO (Floating Production, Storage<br />
and Offloading) facility, which occurs every five years. Production<br />
from the Rosa field is expected to begin in the first half <strong>2007</strong>. Since<br />
the Rosa field is being developed by connection to the Girassol<br />
FPSO, located approximately fifteen kilometers away, this<br />
development (which was approved in July 2004) should allow the<br />
extension of Girassol’s 250 kb/d production plateau (1) .<br />
TOTAL – <strong>Registration</strong> Document 2006 21