Registration Document 2005 - Total.com

2
Business overview
Upstream - Exploration & Production
As of December 31, 2005, TOTAL’s combined proved reserves of
crude oil and natural gas were 11,106 Mboe (of which 50% were
proved developed reserves). Liquids represented approximately
59% of these reserves and natural gas the remaining 41%. These
reserves are located primarily in Europe (Norway, the United
Kingdom, the Netherlands, Italy and France), Africa (Nigeria,
Angola, Congo, Gabon, Libya, Algeria, and Cameroon), Asia/Far
East (Indonesia, Myanmar, Thailand and Brunei), North America
(Canada and the United States), the Middle East (United Arab
Emirates, Qatar, Yemen, Oman, Iran and Syria), South America
(Venezuela, Argentina, Bolivia, Trinidad & Tobago and Colombia),
and the Commonwealth of Independent States (CIS) (Kazakhstan,
Azerbaijan and Russia).
As of December 31, 2004, TOTAL’s combined proved reserves of
crude oil and natural gas were 11,148 Mboe (of which 51% were
proved developed reserves). Liquids represented approximately
63% of these reserves and natural gas the remaining 37%. These
reserves were located primarily in Europe (Norway, the United
Kingdom, the Netherlands, Italy and France), Africa (Nigeria,
Angola, Congo, Gabon, Algeria, Libya and Cameroon), Asia/Far
East (Indonesia, Myanmar, Thailand and Brunei), North America (the
United States and Canada), the Middle East (United Arab Emirates,
Qatar, Oman, Iran, Syria and Yemen), South America (Venezuela,
Argentina, Bolivia, Trinidad & Tobago and Colombia) and the CIS
(Kazakhstan, Azerbaijan and Russia).
As of December 31, 2003, TOTAL’s combined proved reserves of
crude oil and natural gas were 11,401 Mboe (of which 52% were
proved developed reserves). Liquids represented approximately
64% of these reserves and natural gas the remaining 36%. These
reserves were located primarily in Europe (Norway, the United
Kingdom, the Netherlands, France and Italy), Africa (Nigeria,
Angola, Algeria, Congo, Gabon, Libya and Cameroon), Asia/Far
14 TOTAL - Registration Document 2005
East (Indonesia, Thailand, Myanmar and Brunei), North America (the
United States and Canada), the Middle East (United Arab Emirates,
Oman, Iran, Qatar, Syria and Yemen), South America (Venezuela,
Argentina, Bolivia, Colombia and Trinidad & Tobago) and the CIS
(Kazakhstan, Azerbaijan and Russia).
Proved reserves are the estimated quantities of TOTAL’s entitlement
under concession contracts, production sharing agreements
or buy-back agreements. These estimated quantities may vary
depending on oil and gas prices.
An increase in the year-end price has the effect of reducing
proved reserves associated with production sharing or buy-back
agreements (which represent approximately 28% of TOTAL’s
reserves as of December 31, 2005). Under such contracts, TOTAL
is entitled to receive a portion of the production, calculated so that
its sale should cover expenses incurred by the Group. With higher
oil prices, the volume of entitlement necessary to cover the same
amount of expenses is lower.
This reduction is partially offset by an extension of the duration
over which fields can be produced economically. However, the
increase in reserves due to extensions is smaller than the decrease
in reserves under production sharing or buyback agreements. For
this reason, a higher year-end price translates into a decrease in
TOTAL’s reserves.
Considering the relatively high oil price as of December 31, 2005
(Brent $58.21/b), an estimate of reserves is provided hereinafter
based on a price of $40/b. These estimates are for reserves that
would have been otherwise calculated in accordance with Rule
4-10 of Regulation S-X if the Brent price at December 31, 2005
had been $40/b, which is comparable to the 2004 year-end price
of $40.47/b. The proved reserves calculated under this $40/b
assumption would have been 11,329 Mboe.
The table below sets forth the amount of TOTAL’s worldwide proved reserves as of the dates indicated (including both developed
and undeveloped reserves).
TOTAL’s Proved Reserves (1)(2) Liquids (Mb) Natural Gas (Bcf) Total (Mboe)
December 31, 2003 7,323 22,267 11,401
Change from December 31, 2002 1.3% 3.2% 1.8%
December 31, 2004 7,003 22,785 11,148
Change from December 31, 2003 (4.3%) 2.3% (2.2%)
December 31, 2005 6,592 24,750 11,106
Change from December 31, 2004 (5.9%) 8.6% (0.4%)
TOTAL Reserves (1) based on $40/b scenario Liquids (Mb) Natural Gas (Bcf) Total (Mboe)
December 31, 2005 6,778 24,973 11,329
(1) Includes TOTAL’s proportionate share of the proved reserves of equity affiliates and of two companies accounted for by the cost method. See “Supplemental Oil and Gas Information
(Unaudited)”, included on page 231.
(2) Reserves as of December, 31 2005 are calculated based on a Brent crude price of $ 58.21/b in accordance with Rule 4-10 of Regulation S-X.