Registration document 2007 - Total.com

Europe
TOTAL’s production in Europe amounted to 728 kboe/d in
2006, representing 31% of the Group’s overall production.
Highlights of the period from 2004 to 2006 include start-up
of the Skime, Kvitebjørn and Kristin fields in Norway, an
increase in the Group’s interest in the PL211 license
(Victoria), new developments on existing fields (Ekofisk
Area Growth, structure J and West Flank of Oseberg, and
the North Flank of Valhall) and the approval by the
Norwegian Parliament of the Tyrihans development plan. In
the United Kingdom, satellites of the Alwyn (Forvie North,
Nuggets N4) and Elgin-Franklin (Glenelg) facilities began
production. In both the United Kingdom and Norway,
several discoveries (including Jura West in the United
Kingdom) were made and new exploration licenses
awarded. In Italy, TOTAL signed an agreement with the
Basilicate region to start developing the Tempa
Rossa field.
France
The Group has operated fields in France since 1939, with its
most significant activity being the development and operation of
the Lacq gas field, which began in 1957.
The Group’s principal natural gas fields, Lacq (100%) and Meillon
(100%), located in southwest France, and several smaller natural
gas and oil fields in the same region as well as in the Paris Basin,
produced 30 kboe/d in 2006, compared to 29 kboe/d in 2005
and 35 kboe/d in 2004.
The Lacq 2005 project, which is focused on reinforcing industrial
safety standards and optimizing gas processing procedures at
the Lacq and Meillon fields, was successfully completed in 2005.
Under the simplified treatment method, the gas treatment unit
now delivers commercial gas, a liquid naphtha cut, condensates
and liquid sulfur.
After conducting an initial pilot test in 2006 on the SPREX
process (de-acidifying gas by using cryogenics), a pilot program
for capturing and injecting carbon dioxide is being studied. This
program would modify a gas burning plant to operate in an oxycombustion
environment and the carbon dioxide produced would
be re-injected in a depleted field. This program could begin
operation in 2008.
The restoration of certain sites and the re-industrialization of the
Lacq platform are ongoing. Construction of a bio-ethanol unit by
Agengoa Bioenergy began in 2006.
Italy
The Tempa Rossa field, discovered in 1989, is TOTAL’s principal
asset. It is located on the unitized Gorgoglione concession in the
southern Apennins, in the Basilicate region.
In 2002, TOTAL’s share in this concession increased from 25% to
50% as the operator of the development phase sold its interest.
Business overview
Exploration & Production - Upstream
TOTAL is now the operator for all phases of the Tempa Rossa
project.
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A preliminary agreement was reached with the Basilicate region
in 2004. This initial agreement was the basis for the final
agreement (Accordo Quadro) signed between the Basilicate
region, TOTAL, and the other partners in September 2006. This
agreement, combined with the approval of the development plan
proposed by the Basilicate region in May 2006 allows
development of the field to begin.
In 2006, bids for the main purchasing and construction contracts
were evaluated, and contracts may be awarded once the project
is approved.
Prior to this, partners asked for the crude transport arrangements
to be formalized. Discussions are ongoing with the operator of
the Val d’Agri-Tarente pipeline and the operator of the Tarente
refinery. This could lead to the signature of a preliminary
agreement during the first half of 2007.
Start-up of production is scheduled for 2010, with a plateau rate
of 50 kb/d.
TOTAL has interests in other exploration permits in the southern
Apennins region: Teana (80%, operator), Aliano (60%, operator),
Fosso Valdienna (31.7%), Serra San Bernardo (10%) and Tempa
Moliano (31.7%).
Norway
Since the late sixties, the Group has played a major role in the
development of a large number of fields in the Norwegian North
Sea. TOTAL holds interests in 66 production permits on the
Norwegian continental shelf, ten of which it operates. Norway is
the largest contributor to the Group’s production, with an average
of 372 kboe/d in 2006, compared to 383 kboe/d in 2005 and
406 kboe/d in 2004.
The largest contribution to this production, for the most part nonoperated,
comes from the Ekofisk area (39.9%) in southern
Norway, which accounts for approximately 45% of the Group’s
production in the country. This area is made up of four producing
fields with a combined average production of 169 kboe/d for
2006. The Ekofisk Area Growth project (EAG) to install a new
platform and drill a series of wells, began in October 2005 and
contributed to 2006 production, although the project
encountered certain delays and technical difficulties.
TOTAL operates the Skirne/Byggve gas and condensates field
(40%), which accounts for 3% of the Group’s production in
Norway. The Frigg field (77%, operator) was shut down in
October 2004 after 27 years in production. TOTAL is leading a
significant multi-year decommissioning and site restoration
program at this site.
The Oseberg area (10%) in the central North Sea accounts for
slightly more than 9% of the subsidiary’s production and consists
of several platforms and projects, including structure J, which
TOTAL – Registration Document 2006 31