Registration document 2011 - tota - Total.com

3.6. Environment
Environmental issues are important throughout the Group and are
taken into account in all R&D projects. They involve environmental
risk management, including in particular:
– water management, notably by reducing the use of water from
natural continental environments and by lowering emissions in
compliance with the regulations in force;
– reduction of greenhouse gases through the improvement
of energy efficiency and carbon capture and storage;
3.7. R&D organization
The Group intends to increase R&D in all of its business units
through cross-functional themes and technologies. Attention is paid
to synergies of R&D efforts between business units.
The Group has twenty-two R&D sites worldwide and has
developed approximately 600 partnerships with other industrial
groups and academic or highly specialized research institutes.
TOTAL also has a permanently renewed network of scientific
advisors worldwide that monitor and advise on matters of interest
to the Group’s R&D activities. Long-term partnerships with
4. Trends and outlook
4.1. Outlook
In 2012, TOTAL intends to consolidate its drivers for growth and
enhance the priority given to safety, reliability and acceptability of its
operations.
The 2012 net investment budget is $20 billion. TOTAL intends to
continue to actively manage its portfolio with, in particular, a
program of non-strategic asset sales. The 2012 budget for organic
investments is $24 billion.
Capital expenditures will mostly be focused on the Upstream
segment with an allocation of $20 billion, or more than 80%
of the Group’s organic capital expenditure budget. About 30% of the
investment in the Upstream segment is expected to be dedicated
to producing assets while 70% is expected to be assigned to
developing new projects. Downstream organic capital expenditures
in the Refining & Chemicals and Supply & Marketing segments are
expected to amount to $3 billion and $1 billion, respectively, in 2012.
In line with the strategy to develop a number of major integrated
platforms in order to stimulate growth and improve competitive
performance, the main projects in Refining & Chemicals in 2012 will
be the upgrading of the Normandy refinery and petrochemical plant,
the building of the Jubail refinery in Saudi Arabia and the expansion
of the Daesan platform in South Korea. Wherever it operates, TOTAL
will continue to make capital expenditure in the maintenance and
safety of its facilities a top priority.
The Group also confirms its commitment with respect to R&D with
a budget increasing to about $1.2 billion in 2012.
Management Report
Trends and outlook 3
– detection and reduction of emissions into the air and simulation
of their dissemination;
– prevention of soil contamination and regulatory compliance with
regard to historical aspects;
– changes in the Group’s different products and management
of their life cycle, in compliance with the REACH Directive.
universities and academic laboratories, deemed strategic in Europe,
the United States, Japan and China, as well as innovative small
businesses are part of the Group’s approach.
Each business unit is developing an active intellectual property
activity, aimed at protecting its innovations, allowing its activity to
develop without constraints as well as facilitating its partnerships.
In 2011, more than 250 new patent applications were issued by
the Group.
In the Upstream segment, TOTAL will deploy its strategy intended
to speed up growth of its production, while improving the profitability
of its portfolio of assets. The year 2012 should see the launch of
numerous projects. In 2012, TOTAL plans to bring eight new major
projects on-stream, which will contribute to expected growth in
output in 2012 and the achievement of the target rate of average
annual production growth of 2.5% between 2010 and 2015: Usan
and OML 58 Upgrade in Nigeria, Islay in the UK-North Sea, Angola
LNG in Angola, Bongkot South in Thailand, Halfaya in Iraq, Sulige in
China and Kashagan in Kazakhstan. The Group will also continue to
evaluate numerous other projects, in particular in Western Africa,
Russia and Canada. The anticipated launch of these projects during
the course of the next two years should improve visibility on growth
in output after 2015. With an exploration budget that stands at $2.5
billion, up 20% compared to 2011, the Group will continue to
pursue an ambitious and diversified strategy.
In the Downstream sector, with a new organization that will allow it
to take up the challenges specific to each activity of that sector,
the Group should start to reap the first benefits of an integrated
Refining & Chemicals segment and Supply & Marketing segment,
each of which is closer to its markets. Major projects, an optimized
portfolio of assets and productivity gains should help to achieve
the target of an overall rise in profitability by 5% between 2010
and 2015. TOTAL will strive to improve its competitiveness
by adapting its activities in Europe and seeking to enhance
its operational efficiency and synergies between its operations.
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