Registration document 2007 - Total.com

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