Registration document 2007 - Total.com

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South America
The Group’s production in South America in 2006 amounted
to 226 kboe/d, compared to 247 kboe/d in 2005 and
213 kboe/d in 2004. South America accounted for
approximately 10% of the Group’s overall production for
2006. Carina in Argentina began production in 2005 and
Yucal Placer in Venezuela began production in 2004. The
Group is involved in ongoing discussions with Venezuelan
authorities regarding legal and tax changes in the country.
TOTAL’s acquisition of a 49% interest in the offshore
exploration Block 4 of the Plataforma Deltana was formally
approved by the Venezuelan authorities in January 2006. In
Colombia in 2006, the Group agreed to acquire 50% of the
Niscota exploration block. In Bolivia, TOTAL signed new
exploration-production contracts with the Bolivian
government and increased its interest in Block XX West
(operator) to 75%.
Argentina
TOTAL has been present in Argentina since 1978 and operates
approximately 25% of the country’s gas production. In 2006,
TOTAL produced 78 kboe/d, a 5% increase compared to 2005
(74 kboe/d). Production increased by 6% in 2005 compared to
2004 (70 kboe/d).
TOTAL holds interests in Argentina’s two major basins: Neuquen
(the San Roque and Aguada Pichana fields) and Tierra del Fuego
(notably Carina and Canadon-Alfa).
In 2005, TOTAL acquired interests in two new exploration blocks
in the Neuquen Basin: Las Tacanas (50%, operator) and
Chasquivil (50%, operator).
On the San Roque field (24.7%, operator), a medium-pressure
compression project launched in 2003 was commissioned in
August 2006. The development of the Rincon Chico North
discovery and the low-pressure compression project were
launched in January 2006, with production scheduled to begin in
February 2008 and May 2008 respectively. These projects are
expected to extend the field’s production plateau.
On the Aguada Pichana field (27.3%, operator), a low-pressure
compression project was launched in 2005 and is expected to
begin operations in June 2007. Development of the first phase of
the Aguada Pichana North discovery was launched in September
2006 and production is scheduled to begin in March 2008.
These projects are expected to extend the field’s production
plateau.
In the Austral Basin, the Group continued to develop the Carina-
Aries project offshore Tierra del Fuego (37.5%, operator). The
project was reactivated in 2003 and offshore infrastructure
construction was completed in 2004 while onshore infrastructure
construction was completed in 2005. Drilling of the first wells on
Carina was completed in 2005 and drilling of wells on Aries was
completed in January 2006. The Carina field came on stream in
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Business overview
Upstream - Exploration & Production
TOTAL – Registration Document 2006
June 2005 while the Aries field started production in January
2006. A fourth medium-pressure compressor is expected to
start-up in August 2007 to de-bottleneck the facilities and to
increase the capacity to inject gas from the Tierra del Fuego
basin into the San Martin gas pipeline from 12 Mm 3 /d to 15
Mm 3 /d.
Bolivia
TOTAL holds six permits in Bolivia: San Alberto and San Antonio,
both in production (15%) and four permits in the exploration or
appraisal phase: Blocks XX West (75%, operator), Aquio and
Ipati (80%, operator) and Rio Hondo (50%). In October 2006,
TOTAL acquired an additional 34% of Block XX West, adding to
the 41% interest it already held.
In 2006, the Group’s production remained stable at 21 kboe/d,
the same as in 2005, compared to 18 kboe/d in 2004.
The San Alberto and San Antonio fields have been in production
since 2001 and 2003, respectively. TOTAL is also a partner with
Transierra (11%), operator of the Gasyrg gas pipeline, in service
since 2003, and owns 9% of the Rio Grande compression
station.
A successful exploration well, Incahuasi X1, was drilled on the
Ipati block in 2004.
Pursuant to the decree of May 1, 2006 regarding the
nationalization of hydrocarbons, TOTAL signed six new
exploration and production contracts in October 2006 for all
blocks in which it has an interest. Although these contracts were
approved by the Bolivian legislature on December 3, 2006, they
will not become effective until an additional legislative ratification
has been completed. The new contracts retain certain terms
from production sharing agreements while providing for a 50%
production tax and profit sharing between YPFB (Yacimientos
Petroliferos Fiscales Bolivianos, the state-owned Bolivian oil
company) and the foreign partner, after reimbursement of
investments and costs.
Brazil
In 2005, TOTAL increased its interest in the Curio discovery zone
on Block BC2 from 35% to 41.2%.
In June 2005, Petrobras became the operator of Curio. An
additional appraisal period of one year was obtained, with the
obligation to drill one well in 2007.
Colombia
TOTAL holds a 19% interest in the Cusiana and Cupiagua fields,
where the Group’s share of production reached 22 kboe/d in
2006, compared to 26 kboe/d in 2005 and 30 kboe/d in 2004.
In order to renew the Group’s exploration acreage in Colombia,
TOTAL relinquished the Tangara permit late in 2006. An
agreement to acquire 50% of the Niscota exploration block was
concluded in September 2006.