Registration document 2007 - Total.com

The Group also holds a 20% interest in the consortium formed to
participate in the bidding process opened to international oil
companies for production activities on oil fields in northern Kuwait.
Oman
TOTAL is present in Oman on Blocks 6 and 53, and in the Oman
LNG/Qalhat LNG gas liquefaction plant. Production averaged
35 kboe/d in 2006, compared to 36 kboe/d in 2005 and
40 kboe/d in 2004.
On Block 6, operated by Petroleum Development Oman (PDO),
in which TOTAL holds a 4% interest, oil production in 100%
averaged 589 kb/d in 2006, down from 631 kb/d in 2005.
Development of the Mukhaizna heavy oil field on Block 53 (2%)
was launched in 2006 pursuant to the production sharing
contract signed in 2005. Production for 2006 averaged 9.5 kb/d
in 100%.
The two liquefaction trains of Oman LNG (5.54%) produced
6.7 Mt in 2006. The third liquefaction train, commissioned late
in 2005 and owned by a new company, Qalhat LNG, produced
2.2 Mt in 2006 (2.04%, Group interest through Oman LNG).
Qatar
TOTAL has been present in Qatar since 1936 and holds interests
in the Al Khalij field, the North field, the Dolphin project, the
Qatargas I liquefaction plant and the second train of Qatargas II.
TOTAL’s production in Qatar (including its share in the production
of equity affiliates) averaged 58 kboe/d in 2006, compared to
57 kboe/d in 2005 and 2004.
After the third phase of development on the North zone was
completed on the Al Khalij field (100%) in 2004, efforts to
maintain production contributed to production of 42 kb/d (in
100%) in 2006.
TOTAL holds a 20% interest in the upstream operations of
Qatargas I, which produces natural gas and condensates on a
block in the North field. The Group also owns a 10% interest in
the Qatargas I liquefaction plant. A de-bottlenecking project was
completed in June 2005, raising the production capacity for the
three trains to nearly 10 Mt/y. Production in 2006 reached 9.9 Mt,
compared to 9 Mt in 2005.
In December 2001, the Group signed a contract with stateowned
Qatar Petroleum providing for the sale of 2,000 Mcf/d of
gas from the North field, produced by the Dolphin project
(24.5%), for a 25-year period. This gas is expected to be
transported to the United Arab Emirates through a 360 km gas
pipeline. The final development plan was approved in December
2003 by the Qatari authorities and the construction contracts
were awarded in 2004. Construction progressed on both the Ras
Laffan Industrial City site and the offshore section. Production is
scheduled to begin in the summer of 2007.
In February 2005, TOTAL signed a memorandum of understanding
to acquire a 16.7% interest in the second train of Qatargas II. This
Business overview
Exploration & Production - Upstream
2
integrated project intends to develop two new LNG trains, each
with an annual capacity of 7.8 Mt. In July 2006, TOTAL signed four
contracts to purchase 5.2 Mt/y of LNG on behalf of the Group. In
December 2006, TOTAL formalized its acquisition of the 16.7% in
the second train of Qatargas II. The project is scheduled to begin
operations in the winter of 2008/2009.
In July 2005, TOTAL announced a project to locate a Research
Center in the Qatari Scientific and Technical Complex, which is
expected to be completed in 2007.
Syria
TOTAL has been present in Syria since 1988 and is the operator
of nearly 10% of the country’s production.
The Deir Ez Zor permit (100%, operated by DEZPC, 50% of
which is held by TOTAL) is the Group’s only remaining asset in
Syria since the expiration of the BOT (build, operate, transfer)
contract for the Deir Ez Zor gas and condensates reprocessing
plant (50%) whose facilities were transferred to state-owned SGC
(Syrian Gas Company) on January 1, 2006.
In 2006, the Group’s production from the Deir Ez Zor permit was
17 kboe/d, down from that in 2005. The decline of this field is
being mitigated by a campaign of additional drilling on the
principal fields, Jafra and Qahar, and by the start-up of oil
production on the Tabiyeh field.
Yemen
TOTAL has been present in Yemen since 1987 and operates
approximately 10% of the country’s production. The Group has
interests in the country’s two oil basins, as the operator on Block
10 (Masila Basin, East Shabwa permit 28.57%) and as a partner
on Block 5 (Marib Basin, Jannah permit 15%).
A new production record was set in 2006 on the East Shabwa
permit, with 40 kb/d in 100%, 25 kb/d of which came from the
“basement” zone, whose development was launched in 2003.
Production increased 21% compared to 2005, and 66%
compared to 2004. Development of the basement is expected to
continue through 2007 and 2008 in order to take full advantage
of this discovery.
TOTAL’s production also comes from its share in the Jannah
permit, where production averaged 45 kb/d (in 100%) in 2006,
stable compared to the previous years.
The Yemen LNG liquefied natural gas project, operated by Yemen
LNG, a company in which TOTAL (39.62%) is the principal
shareholder, was officially launched in August 2005. This project
calls for the construction of two liquefaction trains with a combined
capacity of 6.9 Mt/y. Operations are expected to begin late in 2008.
Yemen LNG signed three long-term LNG sales contracts in 2005,
one each with Total Gas & Power Ltd (2 Mt/y) and with Suez
(2.5 Mt/y) for deliveries to the United States over a 20-year period
to begin in 2009, and the third with Kogas (2 Mt/y) to be
delivered to South Korea, also for a 20-year period.
TOTAL – Registration Document 2006 35