Registration document 2007 - Total.com

North America
Since 2004, TOTAL has strengthened its position in
Canadian oil sands by increasing its share in the Surmont
permit and acquiring Deer Creek Energy Ltd. The first phase
of Deer Creek Energy’s Joslyn project began production in
November 2006. In November 2005, TOTAL signed an
agreement to exchange four mature onshore fields in South
Texas for a 17% stake in the deep-offshore Tahiti field in the
Gulf of Mexico, which is scheduled to begin production in
mid-2008. In 2006, two successful wells were drilled on the
Alaminos Canyon 856 permit. Production for the year 2006
amounted to 16 kboe/d, less than 1% of the Group’s total
production. The Group’s production in North America
decreased from 61 kboe/d in 2004 to 41 kboe/d in 2005,
principally due to shutdowns related to hurricane damage in
the Gulf of Mexico.
Canada
In Canada, the Group is participating in oil sands projects in
Athabasca, Alberta. The Surmont (50%) and Joslyn permits are
its principal assets. Deer Creek Energy Ltd, acquired in 2005,
operates the Joslyn permit, with an 84% interest.
In 1999, TOTAL began participating in a pilot project on the
Surmont permit in Athabasca to extract bitumen using Steam
Assisted Gravity Drainage (SAGD). In December 2003, the
partners approved the first phase of development, with a planned
capacity of 27 kb/d of bitumen (in 100%). Engineering and
construction activities are ongoing. Production is expected to
begin in the summer of 2007. TOTAL had an interest of 43.5% in
the project as of December 2002, and increased this interest to
50% in April 2005. In August 2005, TOTAL acquired 50% of the
OSL 001 permit, immediately to the north of Surmont. And in
November 2005, TOTAL also acquired 50% of the OSL 006
permit, immediately to the south of Surmont. These two permits
have now been included in the Surmont project.
In 2005, TOTAL acquired 83% of Deer Creek Energy Ltd which
holds 84% of the Joslyn permit, through a public tender
launched in August. TOTAL acquired the remaining 17% of Deer
Creek Energy Ltd through a squeeze-out procedure. Certain
minority shareholders are contesting the compensation they were
awarded through this procedure in local courts. The Joslyn
permit, located approximately 140 km north of Surmont, will
principally (approximately 90%) be developed using mining
techniques. The Joslyn project is expected to be developed in
several phases. The first phase, using SAGD, began production
in November 2006. The mining development phases are
scheduled to begin in 2013, with a planned initial production
plateau of 100 kb/d anticipated to be increased to 200 kb/d in a
subsequent phase. It is estimated that the combined production
from the entire project will amount to approximately two billion
barrels of bitumen over a 30-year period.
In December 2004, TOTAL acquired 100% of the OSL 874
permit located about 40 km west of Surmont. In August 2005, it
acquired 100% of the OSL 354 permit located about 50 km
Business overview
Exploration & Production - Upstream
north of Joslyn. In January 2006, it acquired 100% of the OSP
674 permit. And in September 2006, TOTAL acquired 100% of
the OSL 457 (located near the OSP 674 permit) and OSL 841
permits (located 30 km north of the OSL 354 permit).
In July 2004, TOTAL acquired a 40% interest in three exploration
permits located in the Akue area in northeastern British Columbia.
United States
TOTAL has been present in the United States since 1957. In
2006, the Group’s production decreased to 15 kboe/d,
compared to 41 kboe/d in 2005 and 61 kboe/d in 2004.
Production in 2006 came principally from three deep-offshore
fields in the Gulf of Mexico: Virgo (64%, operator), Aconcagua
(50%, operator) and Matterhorn (100%, operator).
Production from these fields was affected by Hurricane Katrina in
2005. Production on Matterhorn was shut down from August
2005 to August 2006 and production on Virgo was shut down
from August 2005 to May 2006.
In November 2005, TOTAL signed an agreement to exchange
four onshore gas fields in southern Texas for a 17% stake in the
deep-offshore Tahiti field in the Gulf of Mexico. Tahiti is scheduled
to begin production mid-2008, with an anticipated production
capacity (in 100%) of 125 kb/d and 70 Mcf/d. This transaction
closed in January 2006.
In February 2006, the Group signed and closed an agreement to
sell two mature fields, Bethany and Maben, located, respectively,
in eastern Texas and in Mississippi.
In August 2006, TOTAL increased its interest in the Chinook
project from 15% to 33.33%. Development plans for this project
are currently being discussed.
In December 2006, TOTAL signed an agreement to sell its
interests in the Aconcagua and Camden Hills fields, as well as its
interest in the Canyon Express System (25.8%, operator). This
transaction closed in January 2007.
In 2006, two successful wells were drilled on the Alaminos
Canyon 856 permit (70%, operator), confirming the extension of
the Great White field.
In 2006, TOTAL was also awarded 27 new deep-offshore blocks
(Keathley and Garden Banks) after bidding in Louisiana and Texas.
Mexico
TOTAL is conducting various studies in cooperation with
Mexico’s state-owned PEMEX under a technical cooperation
agreement signed in December 2003.
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