Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
Investments<br />
Main investments made over the 2004-2006 period<br />
Business overview<br />
Investments<br />
(in M€) 2006 2005 2004<br />
Upstream 9,001 8,111 6,202<br />
Downstream 1,775 1,779 1,675<br />
Chemicals 995 1,115 949<br />
Corporate 81 190 78<br />
<strong>Total</strong> 11,852 11,195 8,904<br />
Most of the Group’s capital expenditures are made up of<br />
additions to intangible asset and new property, plant and<br />
equipment.<br />
Capital expenditures for 2006 amounted to $13.9 billion,<br />
excluding acquisitions.<br />
In the Upstream segment, capital expenditures are mainly<br />
intended to develop new hydrocarbon production facilities,<br />
exploration activities and purchase of new permits. In 2006,<br />
development expenditures were devoted primarily to the<br />
following projects: Kashagan in Kazakhstan, Yemen LNG in<br />
Yemen, Ekofisk and Snøhvit in Norway, Dalia and Rosa in<br />
Angola, Akpo in Nigeria, Tunu/Tambora in Indonesia, Moho<br />
Bilondo in Congo, Dolphin and Qatargas II in Qatar, Surmont<br />
and Joslyn in Canada and Tahiti in the United Stated.<br />
In the Downstream segment, capital expenditures are split<br />
between refining and marketing activities (notably with<br />
regards to the retail network). Refining investments<br />
(approximately $1 billion in 2005 and 2006) are divided up<br />
between maintenance of the facilities (including major<br />
turnarounds amounting to $0.2 billion in 2006, <strong>com</strong>pared to<br />
$0.3 billion in 2005) and projects to increase the production<br />
of light products, add desulphurization capacity, adapt the<br />
system to new specifications and improve the plants energy<br />
efficiency. Year 2006 was particularly marked by the<br />
<strong>com</strong>pletion of the DHC unit (distillate hydrocracker) in the<br />
Normandy refinery.<br />
In the Chemicals segment, capital expenditures for 2006<br />
were approximately 50% for Base Chemicals and 42% for<br />
Specialties and approximately 8% for Arkema.<br />
Main investments in progress<br />
For the year <strong>2007</strong>, TOTAL announced an investment budget of<br />
approximately $16 billion (excluding acquisitions), of which 75% are<br />
devoted to the Upstream segment.<br />
Capital expenditures in the Upstream segment should be mainly<br />
dedicated to major development projects, of which: Kashagan in<br />
Kazakhstan, Yemen LNG in Yemen, Ekofisk and Snøhvit in Norway,<br />
Pazflor, Tombua/Landana and Rosa in Angola, Akpo in Nigeria,<br />
Tunu/Tambora in Indonesia, Moho Bilondo in Congo, Dolphin in Qatar,<br />
Surmont and Joslyn in Canada, Dunbar in the United Kingdom and Tahiti<br />
in the United States. Furthermore, $1.7 billion should be devoted to<br />
exploration.<br />
In the Downstream segment, capital expenditures should enable the<br />
development of projects to increase conversion and desulphurization<br />
capacities.<br />
TOTAL self-finances most of its capital expenditures from cash flow from<br />
operating activities (see consolidated statement of cash flow on<br />
page 171), which are essentially <strong>com</strong>plemented by accessing the bond<br />
market on a regular basis and depending on market conditions (see note<br />
20 to the consolidated financial statements, pages 209 to 213). However,<br />
capital expenditures for which joint-ventures are established between<br />
TOTAL and external partners are usually the subject of specific project<br />
financing.<br />
Main investments contemplated<br />
Beyond <strong>2007</strong>, TOTAL plans to pursue a sustained investment effort to<br />
promote the growth of its activities, with priority to the Upstream<br />
segment.<br />
2<br />
TOTAL – <strong>Registration</strong> Document 2006 55