Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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2<br />
has an interest. The Group’s share of production reached 242<br />
kboe/d in 2006, <strong>com</strong>pared to 250 kboe/d in 2005 and<br />
271 kboe/d in 2004. Highlights of 2004, 2005 and 2006 included<br />
discoveries and the acquisition of acreage.<br />
Security concerns in the Niger delta region, including armed<br />
attacks on certain sites, kidnappings and damage to facilities, led<br />
the Shell Petroleum Development Company (SPDC, in which<br />
TOTAL holds 10%) to stop production at certain facilities. At<br />
present, it is not possible for the Group to predict when<br />
production at these facilities will resume. TOTAL’s average share<br />
of the production from SPDC decreased by nearly 50 kboe/d for<br />
the year 2006 due to these events.<br />
The fields operated by TOTAL, OML 58, 100, 102 (40%,<br />
operator) and OML 99 - Amenam (30.4%, operator), contributed<br />
approximately 50% of the Group’s Nigerian production in 2004<br />
and 2005, and 60% in 2006. Production from the offshore<br />
Amenam field began in 2003 and reached its production plateau<br />
of 125 kb/d in the summer of 2004. TOTAL’s production also<br />
<strong>com</strong>es from its interests in SPDC, in the Ekanga field (40%), and<br />
in the Bonga field (12.5%), where production started in<br />
November 2005 and reached its plateau production of<br />
210 kboe/d early in 2006.<br />
TOTAL confirmed its interest in developing gas production on the<br />
OML 112-117 permit, which it acquired in 2005 with the<br />
successful drilling of the IMA 12 well. Extensive studies have<br />
been carried out on the OPL 215 permit, acquired in 2005. The<br />
Group’s appraisal of the Egina field (OML 130), which began in<br />
2004, continued from 2005 through <strong>2007</strong> with the drilling of one<br />
exploration well and three appraisal wells. In <strong>2007</strong>, the Group<br />
announced that the Egina field was expected to be developed on<br />
a stand-alone basis. TOTAL also conducted drilling operations in<br />
its “Triangular Bulge” zone permits (OPL 221, 222, and 223). The<br />
results of these efforts are currently being assessed.<br />
Within the framework of the joint venture between NNPC<br />
(Nigerian National Petroleum Corporation) and TOTAL, the<br />
authorities approved the “OML 58 Upgrade” development plan in<br />
July 2006. This new project is expected to begin operations in<br />
2009 and to supply Nigeria LNG’s (NLNG) sixth liquefaction train.<br />
After evaluating the bids it had received, late in 2006 the Group<br />
gave its final approval for a new development project (Ofon II) on<br />
the OML 102 permit. The Nigerian authorities had previously<br />
approved the development of this project in 2005. This new<br />
phase, whose launch is scheduled for 2009, is expected to<br />
produce an additional 70 kboe/d (in 100%). TOTAL also<br />
continued to develop the Amenam Phase II project in 2005 and<br />
2006. This project, which produces associated gas from the<br />
Amenam field to supply NLNG, entered into operation late in<br />
2006.<br />
On fields where TOTAL is not the operator, several projects,<br />
including Bonga North and Southwest, are undergoing<br />
engineering studies. The Afam project (gas and condensates for<br />
domestic supply) and the Gbaran Ubie project (gas and<br />
condensates to supply future NLNG trains) are under<br />
24<br />
Business overview<br />
Upstream - Exploration & Production<br />
TOTAL – <strong>Registration</strong> Document 2006<br />
construction, as are the Soku, Bonny Terminal and Forcados<br />
Yokri projects.<br />
TOTAL is also actively pursuing development work on its deepoffshore<br />
discoveries. Development of the Akpo field on OML 130<br />
(24%, operator) is continuing. The principal engineering and<br />
construction contracts for the development of Akpo, which were<br />
signed in 2005, are currently being executed, with a goal of<br />
reaching a production plateau of 225 kboe/d (in 100%).<br />
Production on the Akpo project is expected to begin late in 2008.<br />
TOTAL also acquired a 40% interest in OMLs 112 and 117 in<br />
2006 and conducted conceptual development studies for the<br />
IMA gas field on these permits. The Group intends to use the gas<br />
produced from this field to supply the LNG plants in which<br />
TOTAL is a shareholder. In 2006, TOTAL continued to increase its<br />
acreage, acquiring (pending final approval by the authorities) an<br />
interest in OPL 247.<br />
TOTAL holds a 15% interest in the NLNG gas liquefaction plant.<br />
At this plant, a fourth train came on line in November 2005,<br />
followed by a fifth train which began operations in February 2006.<br />
In 2004, NLNG’s shareholders decided to invest in a sixth train,<br />
which is scheduled to be <strong>com</strong>missioned in <strong>2007</strong>. The <strong>com</strong>pany<br />
began studies for a seventh train, with a capacity of 8.5 Mt, in<br />
July 2005, which continued in 2006.<br />
In 2006, TOTAL acquired a 17% interest in the Brass LNG<br />
project, which plans to build two trains, each with a capacity of<br />
5 Mt/year. The Group also agreed to supply approximately twothirds<br />
of the second train’s requirements. The final investment<br />
decision for this project is expected to be made in <strong>2007</strong>.<br />
Sudan<br />
Late in 2004, TOTAL (32.5%, operator) updated its production<br />
sharing contract for Block B (118,000 km2 in southeast Sudan).<br />
To counter a claim by the White Nile Company, which publicly<br />
claimed to have rights to the area covered by the permit held by<br />
TOTAL and its partners, the Group sought to enforce its rights in<br />
a British court. In May 2006, the High Court of London ordered<br />
White Nile to disclose the contracts upon which its claims are<br />
based to TOTAL. This ruling was confirmed by the Court of<br />
Appeal in January <strong>2007</strong>.<br />
TOTAL opened an office in Khartoum in 2005 and a branch office<br />
in Juba, southern Sudan, in 2006. The Group has initiated<br />
bidding processes to check the area for landmines and to<br />
conduct 1,200 km of 2D seismic work on the Jonglei Basin.<br />
Once the authorities in Sudan and in South Sudan have<br />
established legal and security conditions in the area that are<br />
suitable for the development of industrial activities in South<br />
Sudan, TOTAL will consider proceeding with a 2D seismic survey<br />
and the drilling of two wells on Block B.