Registration document 2007 - Total.com

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Business overview
Upstream - Exploration & Production
began production in June 2005, the West Flank oil field, which
began production in February 2006, and the Tune gas field in
production since 2002.
The Sleipner area (West 9.4% and East 10%) including Glitne
(21.8%), also in the central North Sea, represents nearly 9% of
production in the country, while the Troll (3.7%) oil and gas field
contributes 7.5%. Among other significant non-operated
producing fields are those located in the Tampen area, including
Snorre (6.2%) and Visund (7.7%), which started gas production
in October 2005 (six years after oil production began). The Valhall
area (including Valhall 15.7%) and Kvitebjørn (5%) started
production in October 2004.
The sub-sea development of the Vilje oil field (24.2%) and the
innovative development of Tordis IOR (5.6%) in the Tampen area
in the North Sea are underway. Production is scheduled to begin
in 2007.
3D seismic OBC (ocean bottom cable) work was performed in
2005-2006 in the northern zone of the North Sea on the Hild
discovery, which the Group operates, and on the Kvitebjørn gas
field (PL193). A new 3D seismic was completed on the zone
covering Tommeliten Alpha (PL044).
On the Haltenbanken area, in the Norwegian Sea, the Åsgard oil
field (7.7%) contributes 7.5% of the Group’s production and
Kristin (6%), the sub-sea high-pressure/high-temperature field,
began production in November 2005. In February 2006, the
development of the Tyrihans oil, gas and condensates field
(23.2%) was approved by the authorities. Production is
scheduled to begin in 2009, with an initial estimated plateau rate
of 70 kboe/d (in 100%), to be reached in 2011.
In 2006, TOTAL increased its interest in the PL211 license (in the
Haltenbanken area) to 40% and became its operator. This license
covers the Victoria discovery, which is not yet developed. The
Group also disposed of a 3.3% interest in the Tyrihans field. As a
result, the Group now has a 23.2% interest in this field.
In the Barents Sea, the Group is involved in the Snøhvit project,
which includes the development of the Snøhvit natural gas field
(18.4%) and the construction of liquefaction facilities on Melkoya
Island. Production is expected to begin in the third quarter of
2007, with a ramp-up over several months.
TOTAL has an 8.1% interest in the Norwegian dry gas transport
system, Gassled, after taking into account the incorporation of
the new Langeled pipeline toward the United Kingdom.
The Group participated in all of the recent licensing rounds and
acquired several exploration permits. In June 2004, TOTAL
acquired a 40% interest, as operator, in Blocks 6406/7 and 8
(including, in particular, the Hans prospect) in the Haltenbanken
zone. In 2006, during the 19 th licensing round, TOTAL also
acquired two additional licenses in the Haltenbanken zone,
including one which the Group operates (PL389, 100%).
TOTAL – Registration Document 2006
In January 2006, TOTAL was awarded the four blocks (two
operated, two non-operated) it had requested in the APA2005
(Awards in Predefined Areas) licensing campaign. Of the two
operated blocks, one (PL041C, 49%) is located near the Hild
discovery and the other (PL379, 100%) in the Haltenbanken area,
south of the Onyx zone. The Onyx SW well discovered
hydrocarbons in 2005. TOTAL also tendered for and obtained the
Victoria South extension in the APA2006 campaign, which it will
operate on behalf of the PL211 association with a 40% interest.
The Group disposed of its share in Enoch (PL048) in 2005.
TOTAL disposed of its share in Peik (PL088), which is partially
located in the United Kingdom, in the first quarter 2007.
Various exploration and appraisal projects were performed under
several permits in 2005 and 2006, including the Onyx SW
discovery (PL255) in 2005 and the successful Tornerose
(PL110 B), Morvin (PL 134B) and Kvitebjørn-Valemon (PL193)
appraisals in 2006.
The government changed the tax treatment of net financial
interests, effective as of January 1, 2007.
The Netherlands
TOTAL has been present in the Netherlands for more than forty
years, where it is the second largest gas operator. The Group’s
share of production amounted to 44 kboe/d in 2006, compared
to 51 kboe/d in 2005 and 59 kboe/d in 2004.
TOTAL holds 22 offshore production permits, of which 18 are
operated by the Group, two operated offshore exploration
permits and one onshore exploration permit. TOTAL sold certain
onshore assets in 2004 (including the Zuidwal and Leeuwarden
concessions) in an effort to streamline its portfolio. The remaining
production assets operated onshore were sold in January 2005.
The Lemmer Marknesse exploration permit was also relinquished
in March 2006.
Several development wells were drilled over the past three years.
During this period, the first phase in the reorganization of Block
L7 was launched, along with major maintenance work. The L4G
structure, developed in 2005 and 2006, began production in
August 2006. The development of structure K5F was approved,
with production scheduled to begin early in 2008.
TOTAL’s principal operated offshore fields, K1, K4/K5, K6, and
L4/L7, contributed 80% of the Group’s Dutch production in
2004, 2005, and 2006.
TOTAL also holds interests in the Dutch offshore transport
network (NOGAT, WGT, and the WGT extension).
Late in 2006, the Group was awarded a new exploration permit
covering offshore block L3.
Three development wells were drilled in 2005: K5-EC-5 and
K4-BE-4 (two very-long offset wells), and L4-G (a re-entry well).
At the same time, the diversion of the gas evacuated from the