Registration Document 2005 - Total.com

Production
TOTAL’s average daily production of liquids and natural gas was
2,489 kboe/d in 2005, down 3.7% from 2,585 kboe/d in 2004
(approximately 3% from the increase in oil and gas prices and
approximately 0.5% from production shutdowns in the Gulf of
Mexico due to hurricane damage, particularly Hurricane Katrina).
In 2003, average production amounted to 2,539 kboe/d. Liquids
accounted for approximately 65% and natural gas accounted for
approximately 35% of TOTAL’s combined liquids and natural gas
production in 2005 on an oil equivalent basis.
The table on the next page sets forth by geographic area TOTAL’s
average daily production of crude oil and natural gas for each of the
last three years.
Consistent with industry practice, TOTAL often holds a percentage
interest in its acreage rather than a 100% stake, with the balance
being held by joint venture partners (which may include other
oil companies, state oil companies or government entities).
TOTAL frequently acts as operator (the party responsible for
technical production) on acreage in which it holds an interest.
See “Presentation of Production Activities by Geographic Area”
on pages 17 to 33 for a description of TOTAL’s principal
producing fields.
Business overview
Exploration & Production - Upstream
TOTAL - Registration Document 2005
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As in 2004 and 2003, substantially all of the crude oil production
from TOTAL’s E&P activities in 2005 was marketed by the Trading-
Shipping activities of its Downstream segment.
See “Downstream—Trading-Shipping” on page 46.
The majority of TOTAL’s natural gas production is sold under longterm
contracts. However, its North American production is sold on
a spot basis as is part of its production from the United Kingdom,
Norway and Argentina. The long-term contracts under which
TOTAL sells its natural gas and LNG production usually provide for
a price related to, among other factors, average crude oil and other
petroleum product prices as well as, in some cases, a cost of living
index. Although the price of natural gas and LNG tends to fluctuate
in line with crude oil prices, there is a delay before changes in crude
oil prices are reflected in long-term natural gas prices. Because
of the relationship between the contract price of natural gas and
crude oil prices, contract prices are not generally affected by
short-term market fluctuations in the spot price of natural gas. See
“Supplemental Oil and Gas Information (unaudited)”, included on
pages 231 to 242.
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