Registration document 2007 - Total.com

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