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