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