Registration document 2007 - Total.com
Registration document 2007 - Total.com
Registration document 2007 - Total.com
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Upstream results<br />
Liquids and gas price realizations (a)<br />
Management Report of the Board of Directors<br />
Summary of results and financial position<br />
The increase in TOTAL’s average liquids price was globally in line with the increase in the Brent price in 2006.<br />
TOTAL’s average gas price increased by more than its liquids price, due to the lag effect on long-term contracts for gas, mainly in Europe,<br />
and strong LNG prices in Asia.<br />
For the full year 2006, hydrocarbon production was 2,356 kboe/d <strong>com</strong>pared to 2,489 kboe/d in 2005, a decrease of 5% due to the<br />
following elements:<br />
• -2% due to the price effect (1) ;<br />
• -1% due to changes in the portfolio;<br />
• -2% due to shut-downs in the Niger Delta area.<br />
Outside of these factors, the positive impact from new fields entering into production was offset by the natural decline of fields and<br />
stoppages in the North Sea.<br />
Proved reserves (a)<br />
As of December 31 2006 2005 2004<br />
3<br />
2006 2005 2004<br />
Brent ($/b) 65.1 54.5 38.3<br />
Average liquids price ($/b) 61.8 51.0 36.3<br />
Average gas price ($/Mbtu) 5.91 4.77 3.74<br />
(a) Consolidated subsidiaries, excluding fixed margins and buyback contracts.<br />
Production<br />
Hydrocarbon production 2006 2005 2004<br />
Liquids (kb/d) 1,506 1,621 1,695<br />
Gas (Mcfd) 4,674 4,780 4,894<br />
Combined production (kboe/d) 2,356 2,489 2,585<br />
Liquids (Mb) 6,471 6,592 7,003<br />
Gas (Bcf) 25,539 24,750 22,785<br />
Hydrocarbon reserves (Mboe) 11,120 11,106 11,148<br />
(a) TOTAL’s proved reserves include fully-consolidated subsidiaries proved reserves and its equity share in equity affiliates proved reserves as well as proved reserves from two non-consolidated<br />
<strong>com</strong>panies.<br />
Proved reserves calculated according to SEC rules were 11,120 Mboe at December 31, 2006, representing close to thirteen years of<br />
production at the current rate.<br />
Based on proved reserves calculated according to SEC rules, the 2006 reserve replacement rate (2) was 102% for the Group (consolidated<br />
subsidiaries and equity affiliates). Excluding changes in the portfolio, it was 108%.<br />
Excluding the impact of changing oil prices, (Brent constant at 40 $/b), the Group’s average reserve replacement rate would be 110% for<br />
the 2004-2006 period.<br />
At year-end 2006, TOTAL had a solid and diversified portfolio of proved plus probable reserves representing 20.5 Bboe, or more than<br />
23 years of production at the current rate (3) .<br />
(1) Impact of hydrocarbon prices on entitlement volumes from production sharing and buy-back contracts.<br />
(2) Change in reserves excluding production (revisions + discoveries, extensions + acquisitions – divestments)/production for the period.<br />
(3) Limited to proved and probable reserves covered by E&P contracts on fields that have been drilled and for which technical studies have demonstrated economic development in a 40 $/b<br />
environment, including the portion of heavy oil in the Joslyn field developed by mining.<br />
TOTAL – <strong>Registration</strong> Document 2006 65