Registration document 2007 - Total.com

Investments
Main investments made over the 2004-2006 period
Business overview
Investments
(in M€) 2006 2005 2004
Upstream 9,001 8,111 6,202
Downstream 1,775 1,779 1,675
Chemicals 995 1,115 949
Corporate 81 190 78
Total 11,852 11,195 8,904
Most of the Group’s capital expenditures are made up of
additions to intangible asset and new property, plant and
equipment.
Capital expenditures for 2006 amounted to $13.9 billion,
excluding acquisitions.
In the Upstream segment, capital expenditures are mainly
intended to develop new hydrocarbon production facilities,
exploration activities and purchase of new permits. In 2006,
development expenditures were devoted primarily to the
following projects: Kashagan in Kazakhstan, Yemen LNG in
Yemen, Ekofisk and Snøhvit in Norway, Dalia and Rosa in
Angola, Akpo in Nigeria, Tunu/Tambora in Indonesia, Moho
Bilondo in Congo, Dolphin and Qatargas II in Qatar, Surmont
and Joslyn in Canada and Tahiti in the United Stated.
In the Downstream segment, capital expenditures are split
between refining and marketing activities (notably with
regards to the retail network). Refining investments
(approximately $1 billion in 2005 and 2006) are divided up
between maintenance of the facilities (including major
turnarounds amounting to $0.2 billion in 2006, compared to
$0.3 billion in 2005) and projects to increase the production
of light products, add desulphurization capacity, adapt the
system to new specifications and improve the plants energy
efficiency. Year 2006 was particularly marked by the
completion of the DHC unit (distillate hydrocracker) in the
Normandy refinery.
In the Chemicals segment, capital expenditures for 2006
were approximately 50% for Base Chemicals and 42% for
Specialties and approximately 8% for Arkema.
Main investments in progress
For the year 2007, TOTAL announced an investment budget of
approximately $16 billion (excluding acquisitions), of which 75% are
devoted to the Upstream segment.
Capital expenditures in the Upstream segment should be mainly
dedicated to major development projects, of which: Kashagan in
Kazakhstan, Yemen LNG in Yemen, Ekofisk and Snøhvit in Norway,
Pazflor, Tombua/Landana and Rosa in Angola, Akpo in Nigeria,
Tunu/Tambora in Indonesia, Moho Bilondo in Congo, Dolphin in Qatar,
Surmont and Joslyn in Canada, Dunbar in the United Kingdom and Tahiti
in the United States. Furthermore, $1.7 billion should be devoted to
exploration.
In the Downstream segment, capital expenditures should enable the
development of projects to increase conversion and desulphurization
capacities.
TOTAL self-finances most of its capital expenditures from cash flow from
operating activities (see consolidated statement of cash flow on
page 171), which are essentially complemented by accessing the bond
market on a regular basis and depending on market conditions (see note
20 to the consolidated financial statements, pages 209 to 213). However,
capital expenditures for which joint-ventures are established between
TOTAL and external partners are usually the subject of specific project
financing.
Main investments contemplated
Beyond 2007, TOTAL plans to pursue a sustained investment effort to
promote the growth of its activities, with priority to the Upstream
segment.
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