Registration document 2007 - Total.com

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