Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Refining & Marketing<br />
As of December 31, 2006, TOTAL’s worldwide refining capacity<br />
was 2,700 thousand barrels per day (kb/d). The Group’s refined<br />
products sales worldwide were 3,786 kb/d (including trading<br />
activities), <strong>com</strong>pared to 3,792 kb/d in 2005 and 3,761 kb/d in<br />
2004. TOTAL is the largest refiner/marketer (1) in Western Europe<br />
and, with a market share of 11%, the largest marketer in Africa (2) .<br />
As of December 31, 2006, TOTAL’s marketing network consisted<br />
of 16,534 retail stations worldwide (<strong>com</strong>pared to 16,976 in 2005<br />
and 16,857 in 2004), of which approximately 50% are owned by<br />
the Group. TOTAL’s refineries also allow the Group to produce a<br />
broad range of specialty products, such as lubricants, liquefied<br />
petroleum gas (LPG), jet fuel, special fluids, bitumen and<br />
petrochemical feedstock.<br />
Since 2004 TOTAL has pursued a sustained refining investment<br />
program to respond to changes in the oil market. This program,<br />
initiated with the construction of a distillate hydrocracker (DHC) at<br />
the Group’s refinery in Normandy, France, continued in 2006 with<br />
the launch of engineering studies for two major projects: the<br />
construction of a full-conversion refinery in Saudi Arabia and the<br />
construction of a deep conversion unit at the Port Arthur, Texas,<br />
refinery. Under this program, the Group plans to invest an<br />
average of 1 B€ per year in refining over the 2006-2010 period<br />
(excluding capitalization of turnarounds).<br />
For its marketing activities, the Group’s strategy is to strengthen<br />
its positions in Europe and Africa and to pursue targeted growth<br />
in certain other markets, in particular in Asia.<br />
Refining<br />
As of December 31, 2006, TOTAL held interests in 27 refineries<br />
(including thirteen that it operates), located in Europe, the United<br />
States, the French West Indies, Africa and China.<br />
TOTAL’s refining capacity in Western Europe is 2,342 kb/d,<br />
accounting for more than 85% of the Group’s global refining<br />
capacity and making TOTAL the leading refiner in this region.<br />
TOTAL operates twelve refineries in Western Europe. Six are<br />
located in France, one in Belgium, one in Germany, two in the<br />
United Kingdom, one in Italy and one in the Netherlands. TOTAL<br />
also has minority interests in another German refinery (Schwedt)<br />
as well as interests in four Spanish refineries through its holdings<br />
in CEPSA.<br />
In the United States, TOTAL operates the Port Arthur, Texas,<br />
refinery near the Gulf of Mexico, which has a production capacity<br />
of 174 kb/d.<br />
TOTAL, Sinochem and PetroChina have been in partnership for<br />
more than ten years in the WEPEC refinery located in Dalian<br />
(1) Source: Oil and Gas Journal, December 18, 2006.<br />
(2) Company sources, PFC Energy, December 2006.<br />
Business overview<br />
Refining & Marketing - Downstream<br />
(China), whose annual refining capacity averages 219 kb/d.<br />
TOTAL holds a 22.41% interest in this refinery.<br />
2<br />
From 2006 to 2010, TOTAL plans to invest approximately 5 B€ in<br />
refining, excluding capitalization of turnarounds. Nearly 40% is<br />
designated for projects to increase refining capacities and for<br />
conversion projects to upgrade heavier crudes. Nearly 20% is<br />
designated for developing units and desulphurization to process<br />
high-sulphur crudes. Finally, approximately 30% is designated for<br />
modernizing refining sites, improving safety and energy efficiency<br />
and reducing environmental impacts.<br />
• Concerning growth and conversion, two major projects<br />
were initiated in Saudi Arabia and the United States in the<br />
first half 2006.<br />
TOTAL and The Saudi Arabian Oil Company (Saudi Aramco)<br />
signed a Memorandum of Understanding (MOU) related to a<br />
project for the construction and operation of a refinery with a<br />
capacity of 400 kb/d in Jubail, Saudi Arabia. This fullconversion<br />
refinery is being designed to process Arabian<br />
Heavy crude and produce high-quality refined products<br />
adapted for all markets, mainly for export. A <strong>com</strong>prehensive<br />
joint Front-End Engineering and Design (FEED) study was<br />
undertaken in July 2006. Saudi Aramco and TOTAL agreed to<br />
form a joint-venture <strong>com</strong>pany in which Saudi Aramco and<br />
TOTAL would each hold 35% and the remaining 30% would<br />
be listed on the Saudi stock exchange, subject to the<br />
approval of the relevant authorities, at the end of the FEED<br />
(beginning of 2008). Start-up of the refinery is scheduled for<br />
2011.<br />
TOTAL launched studies for the construction of a deep<br />
conversion unit or “coker” at the Port Arthur refinery in the<br />
United States. This project is being designed to upgrade<br />
heavy crudes and produce lighter products for a structurally<br />
short American fuel market.<br />
• Performance investments are designed to adapt TOTAL’s<br />
refineries to changes in the European oil market: growing<br />
demand for diesel and increasing supply of high-sulphur crudes.<br />
The first project of this type is the construction of a distillate<br />
hydrocracker (DHC) at the Normandy refinery in France. This<br />
unit, whose construction began in the spring of 2004, came<br />
on-stream successfully in 2006. The project represented a<br />
total investment of approximately 550 M€ over the 2003-2006<br />
period, and also included, the construction of a hydrogen<br />
production unit.<br />
TOTAL – <strong>Registration</strong> Document 2006 43